The for-profit company comprised of such colleges as Everest, Heald, and WyoTech have been unable to answer for the multitude of charges brought against them. In 2014, the Consumer Financial Protection Bureau sued Corinthian Colleges Inc. for predatory lending practices. In April 2014 the U.S. Department of Education fined Corinthian Colleges Inc. $30 million for misrepresentation and student debt forgiveness is available for students.
Once one of the biggest for-profit college chains, the Corinthian Colleges collapsed shortly before fall 2014 due to the federal government cutting off funding as investigations into falsified data persisted. This created a shortage in funds and an inability to procure new investors. As a result, Corinthian sold most of its schools to a nonprofit student loan company, however, due to an ongoing investigation by the Department of Education and litigation with California Attorney General Kamala D. Harris, Corinthian was prevented from selling more than 24 campuses in the western states.
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The company said that it was undergoing negotiations to sell its remaining colleges and to provide a way for students to transfer and continue their education but was unsuccessful due to liability being passed on to the new buyers as well as financial penalties accompanied with it.
Corinthian Colleges inc has “Ceased substantially all operations” though they haven’t filed yet for bankruptcy. The schools close on Monday, April 27th, 2015, and will not reopen. The schools that are closing include 13 Everest and WyoTech campuses and 12 Heald College campuses as well as its online division.
Transferring credits from one post-secondary private college to another is generally problematic and rarely does it work. The students are forced to choose one of two options; Apply for federal student loan forgiveness and start over in a new university or try to find a school that will accept their credits. The closure, announced Sunday, April 26th, 2015, was abrupt and not expected for months to come. They effectively gave students and staff one day’s notice that the colleges will be shut down giving them very little time to prepare for the next step.
If you were affected by the demise of Corinthian Colleges Inc. and believe you may be entitled to federal student loan forgiveness through one of the Department of Education’s forgiveness programs call us today to see if you qualify for forgiveness.