Skip to content
ADVERTISEMENT
Sign In
  • Sections
    • News
    • Advice
    • The Review
  • Topics
    • Data
    • Diversity, Equity, & Inclusion
    • Finance & Operations
    • International
    • Leadership & Governance
    • Teaching & Learning
    • Scholarship & Research
    • Student Success
    • Technology
    • Transitions
    • The Workplace
  • Magazine
    • Current Issue
    • Special Issues
    • Podcast: College Matters from The Chronicle
  • Newsletters
  • Virtual Events
  • Ask Chron
  • Store
    • Featured Products
    • Reports
    • Data
    • Collections
    • Back Issues
  • Jobs
    • Find a Job
    • Post a Job
    • Professional Development
    • Career Resources
    • Virtual Career Fair
  • More
  • Sections
    • News
    • Advice
    • The Review
  • Topics
    • Data
    • Diversity, Equity, & Inclusion
    • Finance & Operations
    • International
    • Leadership & Governance
    • Teaching & Learning
    • Scholarship & Research
    • Student Success
    • Technology
    • Transitions
    • The Workplace
  • Magazine
    • Current Issue
    • Special Issues
    • Podcast: College Matters from The Chronicle
  • Newsletters
  • Virtual Events
  • Ask Chron
  • Store
    • Featured Products
    • Reports
    • Data
    • Collections
    • Back Issues
  • Jobs
    • Find a Job
    • Post a Job
    • Professional Development
    • Career Resources
    • Virtual Career Fair
    Upcoming Events:
    Hands-On Career Preparation
    An AI-Driven Work Force
    Alternative Pathways
Sign In
For-Profit Colleges

Corinthian to Sell 95 of Its Campuses Under Education Dept. Agreement

By Goldie Blumenstyk July 4, 2014

Corinthian Colleges Inc. will put 85 of its campuses in the United States up for sale and “teach out” the other 12 under a deal finalized with the U.S. Department of Education on Thursday night. Separately, it will sell its 10 campuses in Canada.

The campuses it won’t be selling enroll a total of about 3,400 students, or about 5 percent of the for-profit higher-education company’s overall enrollment.

To continue reading for FREE, please sign in.

Sign In

Or subscribe now to read with unlimited access for as low as $10/month.

Don’t have an account? Sign up now.

A free account provides you access to a limited number of free articles each month, plus newsletters, job postings, salary data, and exclusive store discounts.

Sign Up

Corinthian Colleges Inc. will put 85 of its campuses in the United States up for sale and “teach out” the other 12 under a deal finalized with the U.S. Department of Education on Thursday night. Separately, it will sell its 10 campuses in Canada.

The campuses it won’t be selling enroll a total of about 3,400 students, or about 5 percent of the for-profit higher-education company’s overall enrollment.

In a news release issued late Thursday, the department said the agreement “provides students at the company’s career colleges a chance to complete their education and protects taxpayers’ investment while Corinthian works to either sell or close its campuses across the country in the next six months.”

The agreement comes two weeks after the department heightened its financial oversight of Corinthian and withheld financial-aid payments, exacerbating a cash-flow crisis for the company that it said would threaten its very existence. Days later, Corinthian and the department announced an agreement for the company to sell or wind down operations on all of its campuses over the next six months under a plan that was expected by July 1 but that took until late Thursday to be finalized.

The department said it had taken the action “after the company failed to provide records concerning enrollment and job-placement data required by federal law, and failed to fully address concerns about its practices, including faulty job-placement data used in marketing claims to prospective students and allegations of altered grades and attendance.”

The names of the colleges to be put up for sale won’t be made public until the company provides further disclosures on Monday. On campuses designated for “teach outs,” Corinthian will maintain enough staff and faculty members to allow enrolled students to complete their programs. Some advocates for students, concerned that the department wasn’t doing enough to protect students’ interests, have urged it to also offer loan discharges to students in colleges that are to be sold.

An Independent Monitor

Under the agreement, Corinthian will hire an independent monitor to oversee all operations.

Enrollments on the teach-out campuses will be halted immediately, the department said, and Corinthian will make refunds available “in a number of circumstances.” The department said it would work with Corinthian to establish a $30-million reserve fund for the refunds.

Corinthian has also agreed to suspend enrollment of new students on all campuses until July 8, 2014, when it and the department expect the yet-to-be-identified monitor to be in place.

The department will release $35-million in federal student aid to Corinthian so it can continue to operate the colleges in the interim, with the stipulation that all the money go toward educational costs. “Corinthian will not use federal funding to pay dividends, legal settlements of lawsuits or investigations, or debt repayments,” the department said. The company may use the money to pay bonuses, severance payments, raises, and retention agreements, but only with the notice and approval of the monitor.

“This agreement allows our students to continue their education and helps minimize the personal and financial issues that affect our 12,000 employees and their families,” Corinthian’s chairman and chief executive officer said on Thursday in a prepared statement. “It also provides a blueprint for allowing most of our campuses to continue serving their students and communities under new ownership.”

We welcome your thoughts and questions about this article. Please email the editors or submit a letter for publication.
Share
  • Twitter
  • LinkedIn
  • Facebook
  • Email
Blumenstyk_Goldie.jpg
About the Author
Goldie Blumenstyk
The veteran reporter Goldie Blumenstyk writes a weekly newsletter, The Edge, about the people, ideas, and trends changing higher education. Find her on Twitter @GoldieStandard. She is also the author of the bestselling book American Higher Education in Crisis? What Everyone Needs to Know.
ADVERTISEMENT
ADVERTISEMENT

More News

Marva Johnson is set to take the helm of Florida A&M University this summer.
Leadership & governance
‘Surprising': A DeSantis-Backed Lobbyist Is Tapped to Lead Florida A&M
Students and community members protest outside of Coffman Memorial Union at the University of Minnesota in Minneapolis, on Tuesday, April 23, 2024.
Campus Activism
One Year After the Encampments, Campuses Are Quieter and Quicker to Stop Protests
Hoover-NBERValue-0516 002 B
Diminishing Returns
Why the College Premium Is Shrinking for Low-Income Students
Harvard University
'Deeply Unsettling'
Harvard’s Battle With Trump Escalates as Research Money Is Suddenly Canceled

From The Review

Illustration showing a valedictorian speaker who's tassel is a vintage microphone
The Review | Opinion
A Graduation Speaker Gets Canceled
By Corey Robin
Illustration showing a stack of coins and a university building falling over
The Review | Opinion
Here’s What Congress’s Endowment-Tax Plan Might Cost Your College
By Phillip Levine
Photo-based illustration of a college building under an upside down baby crib
The Review | Opinion
Colleges Must Stop Infantilizing Everyone
By Gregory Conti

Upcoming Events

Ascendium_06-10-25_Plain.png
Views on College and Alternative Pathways
Coursera_06-17-25_Plain.png
AI and Microcredentials
  • Explore Content
    • Latest News
    • Newsletters
    • Letters
    • Free Reports and Guides
    • Professional Development
    • Virtual Events
    • Chronicle Store
    • Chronicle Intelligence
    • Jobs in Higher Education
    • Post a Job
  • Know The Chronicle
    • About Us
    • Vision, Mission, Values
    • DEI at The Chronicle
    • Write for Us
    • Work at The Chronicle
    • Our Reporting Process
    • Advertise With Us
    • Brand Studio
    • Accessibility Statement
  • Account and Access
    • Manage Your Account
    • Manage Newsletters
    • Individual Subscriptions
    • Group and Institutional Access
    • Subscription & Account FAQ
  • Get Support
    • Contact Us
    • Reprints & Permissions
    • User Agreement
    • Terms and Conditions
    • Privacy Policy
    • California Privacy Policy
    • Do Not Sell My Personal Information
1255 23rd Street, N.W. Washington, D.C. 20037
© 2025 The Chronicle of Higher Education
The Chronicle of Higher Education is academe’s most trusted resource for independent journalism, career development, and forward-looking intelligence. Our readers lead, teach, learn, and innovate with insights from The Chronicle.
Follow Us
  • twitter
  • instagram
  • youtube
  • facebook
  • linkedin