One of the nation's largest for-profit college companies has finally closed all its remaining schools, leaving thousands of students in limbo.
According to the Washington Post, Corinthian Colleges announced Sunday the closure of 28 schools to end a long, tumultuous descent. The Education Department (ED) indicated it will be helping the company reach solutions for the 16,000 students abruptly left without a school.
The company also owned Everest Institute, Wyotech and Heald Colleges.
"As Corinthian closes its doors for good... department staff will immediately begin outreach to Corinthian students to review all their options, which may include loan discharges for students whose school closed," Undersecretary of Education Ted Mitchell said in a statement. "What these students have experienced is unacceptable."
The ED was investigating Corinthian for allegedly boasting false statistics to attract students, which resulted in the for-profit education company losing its federal aid. The company still maintains it did not post false job placement statistics.
"We believe that we have attempted to do everything within our power to provide a quality education and an opportunity for a better future for our students," Jack Massimino, Chief Executive Officer of Corinthian, said in a statement. "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. I would like to thank our employees for their selfless dedication and commitment to fulfilling the educational and career goals of all of our students."
Corinthian apparently crumbled under a large lawsuit from the Consumer Financial Protection Bureau relating to student lending, as well as a $30 million fine from the ED. The department found more than 900 cases of false job placements statistics amid Corinthian's efforts to sell one of its properties, Heald Colleges.
"Colleges like ours fill an important role in the broader education system and address a critical need that remains largely unmet by community colleges and other public sector schools," Massimino said. "Overall, our schools did a good job for the students they served. We made every effort to address regulators' concerns in good faith. Neither our Board of Directors, our management, our faculty, nor our students believe these schools deserved to be forced to close."
