Corinthian Colleges will sell 85 of its U.S. schools and gradually wind down operations at 12 other schools under a signed agreement with the U.S. Department of Education, the post-secondary education company announced today.
The California company runs six Everest College campuses in Western Washington. It’s unknown which schools will close or be sold. The company is being investigated by the Washington Attorney General’s Office, according to federal security filings, amid allegations of preying on low-income students and falsifying job-placement rates.
The operating agreement establishes an “orderly transition plan” for its 107 campuses and online programs and will allow its students to complete their education programs. The agreement provides for an immediate “drawdown of Title IV (student financial aid) funds for currently enrolled students and a mechanism for continued funding while the agreement is in place,” according to a news release. The state’s student-aid office has yanked Everest student-aid funding for next year.
Corinthian will suspend enrollment for new students until Tuesday, when the education department and Corinthian will have an independent compliance and business monitor to serve as a primary liaison between the two parties.
The six Everest College campuses in Washington offer training classes for medical and dental assistants, massage therapists and pharmacy technicians. Everest enrolled about 3,000 students in Washington in 2012, according to federal data. Corinthian Colleges employs 12,000 people.