Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe dozen campuses that for-profit education company Corinthian Colleges Inc. is closing operate under the Everest name and are scattered in 11 different states, including Indiana, the company announced Tuesday.
The Santa Ana, Calif.-based company, which competes against Carmel-based ITT Educational Services Inc., reached an agreement with the US. Department of Education late last week that has it shutting down those campuses and putting 85 U.S.-based campuses up for sale. About a dozen others in Canada also will be sold.
Corinthian, ITT Educational and other for-profit college companies have been under increased scrutiny and tighter regulation in recent years.
About 3,400 of the 72,000 students who attend schools owned by Corinthian — owner of Everest College, Heald College and WyoTech schools — will be affected by the closures, the company said.
Among those closing is the Merrillville campus in northwest Indiana.
Also closing are campuses in Bensalem, Pa.; Chelsea, Mass.; Cross Lanes, W. Va.; Eagan, Minn.; Fort Worth, Texas; Grand Rapids, Mich.; Kalamazoo, Mich.; Salt Lake City, Utah; St. Louis; Silver Spring, Md.; and McLean, Va.
Last month, the department put Corinthian on heightened financial monitoring with a 21-day waiting period for federal funds. That was after it failed to provide adequate paperwork and comply with the department's requests to address concerns about the company's practices. The department said the concerns included allegations of falsifying job-placement data used in marketing claims to prospective students, and allegations of altered grades and attendance.
Under the terms of the agreement, the campuses must tell students their options and each campus will have a plan that allows students to finish their program, if they choose to do so. Some are eligible for a refund.
The company faces multiple state and federal investigations.
Corinthian shares traded at 22 cents each Tuesday morning, down from $1.78 at the end of 2013.
ITT Educational shares fell 22 cents, or 1.4 percent, early Tuesday, to $16.12 a share, after falling 2.2 percent Monday. The stock has lost 52 percent of its value since the beginning of the year.
Apollo Education Group Inc. shares fell 1.2 percent Monday, to $30.85, and Career Education Corp. shares declined 6.7 percent, to $4.62.
Please enable JavaScript to view this content.