Troubled For-Profit Corinthian Colleges Shutting Down

Troubled For-Profit Corinthian Colleges Shutting Down As Education Department Faces Bill

Corinthian Colleges Inc., once one of the nation's largest chains of for-profit colleges, announced Sunday it is abruptly shutting down after failing to find buyers for its roughly 30 remaining campuses, leaving up to 16,000 students in the lurch and potentially costing the U.S. Department of Education tens of millions of dollars in foregone federal student loan payments.

""What these students have experienced is unacceptable," Education Undersecretary Ted Mitchell said in a blog post Sunday.

The California-based chain at its peak operated more than 120 colleges with more than 110,000 students across North America under the Everest, Wyotech and Heald brands. Last July, under pressure from the Education Department over a paperwork dispute, the company struck a deal with the Obama administration to sell or close all of its campuses over the following six-month period in order to avoid what the Education Department described as an "immediate closure," or exactly what has happened with the company's Sunday announcement."

 

Besides the obvious, WyoTech in Laramie, WY was once known as a very reputable technical school for semi-truck repair. People came from all over the country to study semi-truck mechanics there.

 

A major for-profit chain of colleges shutting down? I can only think of a one-word response...

Schadenfreude. :naughty:

 

Small update. Corinthian files for bankrupcy.

http://www.nytimes.com/2015/05/05/education/for-profit-corinthian-colleges-file-for-bankruptcy.html?ref=education&_r=0

 

Small update. Oregon's notice regarding the Heald closure.

 

Former students position themselves for a share of the bankrupcy pie.

http://www.nytimes.com/2015/05/12/us/former-students-seek-to-shape-corinthian-colleges-bankruptcy.html?ref=education