For-profit college Corinthian Colleges is shutting its doors
It is working to find other schools for the roughly 16,000 students affected by the shutdown, the company said in a statement on Sunday.
In a letter to students on Saturday, the company said it was in the process of arranging for students to continue their studies. The company added: "We want you to know that we made every effort to find a qualified buyer to purchase our remaining campuses and keep your school open and several had expressed interest in doing so. Unfortunately, largely as a result of recent state and federal regulatory actions, we were unable to complete a sale, and our only option was to close our schools.
The Santa Ana, California-based company had been subject to multiple federal and state probes into whether it misled investors and students about its finances and job placement rates. Last year, it agreed with the U.S. Department of Education to sell or close down its campuses.
Back in February, Business Insider reported that a group of Corinthian students were refusing to pay back their student loans, writing in a letter to the Department of Education that, "Corinthian's predatory empire pushed hundreds of thousands into a debt trap."
Earlier this month, the U.S. Department of Education fined Corinthian Colleges $30 million for misrepresenting job placement rates to students in it Heald College system. The government determined that Corinthian's Heald College would no longer be allowed to enroll students.
Corinthian sold off more than half of its campuses to non-profit education provider ECMC Group late last year.
It said the campuses that are closing include 13 remaining Everest and WyoTech campuses in California, as well as Heald College.
Corinthian Chief Executive Officer Jack Massimino said "the current regulatory environment would not allow us to complete a transaction with several interested parties that would have allowed for a seamless transition for our students."
Increased regulation has hurt for-profit education companies such as Corinthian, Apollo Education Group Inc and Strayer Education Inc, which have struggled to attract students since a 2010 government crackdown revealed high student debt loads, low graduation rates and poor employability of graduates.
In the last year, shares of Corinthian fell more than 98%, with shares closing just below $0.02 per share on Friday.
Back in 2004, the stock traded as high as $60 per share.
Here's the stunning chart:
Google Finance
(Reuters reporting by Michael Erman in New York; Editing by Jeffrey Benkoe)
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- 2 states where home prices are falling because there are too many houses and not enough buyers
- "To sit and talk in the box...!" Kohli's message to critics as RCB wrecks GT in IPL Match 45
- 7 Nutritious and flavourful tiffin ideas to pack for school
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market