Corinthian Colleges to close more than two dozen schools on Monday

Corinthian Colleges to close more than two dozen schools on Monday

Corinthian Colleges will close all of its 28 campuses in California effective Monday. After the federal and state investigations, the Corinthian Colleges management has already sold majority of its schools to a student loan servicer. The for-profit Corinthian Colleges Incorporated has been under scrutiny for its placement practices.

The decision announced by Corinthian Colleges will impact more than 16,000 students. Corinthian Colleges also announced closure of Heald College campus in California. As the colleges shut downs have been announced, impacted students will be eligible for a full discharge of student loan debt.

Santa Ana, California-based Corinthian Colleges said that it was working with other schools to help students shift and continue their studies with new schools. The current decision of closure includes Heald College campuses in California, Hawaii and Oregon, as well as Everest and WyoTech schools in California, Arizona and New York.

Two weeks back, the U.S. Department of Education slapped $30 million fine on Corinthian Colleges for unfair practices. The for-profit educational institutions have been found guilty of fake job placement data and alteration in attendance records and grades for students. To improve its placement records, Corinthian Colleges paid employment agencies to temporarily hire students after their graduation.

In a statement announcing the final closure, Corinthian CEO Jack Massimino said, "Unfortunately 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. We had worked very hard for a better outcome that would have allowed many of you to continue working under new ownership."

Last year, the U.S. Department of Education had restricted the federal student aid to the educational institutes due to pending investigation.

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