- Corinthian Colleges Inc. says a lawsuit by California Attorney General Kamala Harris — and her decision to make any future buyers liable for its outcome — is limiting California campuses’ marketability.
- Inside Higher Ed reports that the for-profit education company needs to find a buyer in the next several weeks or it could close its California campuses, displacing current students and leaving the federal government on the hook for their student loans.
- The U.S. Department of Education is still deciding how to proceed with Corinthian if it doesn’t find a buyer because Under Secretary of Education Ted Mitchell already told lawmakers it wouldn’t be allowed to continue operating indefinitely, according to the article.
Corinthian Colleges Inc., was one of the largest for-profit higher education operators in the United States until its precipitous fall from grace in 2014. Besides the California lawsuit, the company has been under investigation by the Securities and Exchange Commission and the Consumer Financial Protection Bureau, as well as facing heightened scrutiny by the Department of Education, which led a “controlled shutdown” of about a dozen of its campuses and the sale of nearly 100 since last year. More than 100 Corinthian students are leading a debt strike, refusing to pay student loans they took out to attend the company’s schools. Many students, however, continue to take out loans and attend classes on Corinthian’s remaining campuses.