Everest College, Wyotech, and Heald, all part of the Corinthian Colleges umbrella, will close NPR reported today:
“Under an agreement with the U.S. Department of Education, Corinthian Colleges will put 85 of its U.S. campuses up for sale and close the remaining dozen. The for-profit college chain operates campuses under the names Heald, Everest and WyoTech. It has more than 70,000 students across North America. It’s the largest-ever college, by enrollment, to be shut down in this way.”
Corinthian Colleges, U.S. Department of Education Sign Operating Agreement
SANTA ANA, Calif., July 3, 2014 (GLOBE NEWSWIRE) — Corinthian Colleges, Inc. (Nasdaq:COCO) announced today that it has signed an operating agreement with the U.S. Department of Education that establishes an orderly transition plan for its 107 campuses and online programs, and allows its students to complete their educational programs. ED has also provided 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.
The operating agreement is consistent with the Memorandum of Understanding announced by the Department and Corinthian on June 23, 2014. Under the terms of the agreement, Corinthian will put 85 of its U.S. schools up for sale, and “teach out” (gradually wind down) operations at 12 other schools. Corinthian agreed to work toward signing definitive agreements for campus sales in approximately six months. Separately, the Company will also begin a sales process for its Canadian schools.
ED will also appoint an independent compliance and business Monitor who will serve as the primary liaison between Corinthian and ED. Corinthian has agreed to suspend enrollment of new students until July 8, 2014, when ED and Corinthian plan to have the Monitor in place.
“We are pleased to have reached an agreement with ED that helps protect the interests of our students, employees and other stakeholders,” said Jack Massimino, Corinthian Chairman and Chief Executive Officer. “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. It also provides a blueprint for allowing most of our campuses to continue serving their students and communities under new ownership.”