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Corinthian Colleges warns it may shut down

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NEW YORK (AP) — Corinthian Colleges, a for-profit education company with about 75,000 students nationwide, warned Thursday that it may fail as it clashes with U.S. regulators over student data.

Corinthian, which owns the Everest College, Heald College and WyoTech schools, said that the U.S. Department of Education has limited its access to federal funds after it failed to provide documents and other information to the agency.

That follows allegations that the company altered grades, student attendance records and falsified job placement data used in advertisements for its schools.

Shares in the company plunged 64 percent Thursday.

The Education Department said that it heightened its oversight of the company after requesting data “multiple times” over the past five months. Regulators have grown increasingly concerned about inconsistencies in its job placement claims for graduates.

Corinthian’s problems come as student enrollment at schools run by for-profit education companies have been dropping amid heightened government scrutiny of the industry’s practices. Earlier this year, the Consumer Financial Protection Bureau filed suit against another company, ITT Educational Services Inc., alleging that it pushed students into high-cost private loans knowing they would likely default. The company denied the charges. Several state attorneys general are also investigating various for-profit education companies.

At Corinthian, the Education Department has now limited the federal student aid funds available to the school and is releasing those funds only 21 days after Corinthian submits student enrollment data, according to a Securities and Exchange Commission filing.

Those funds are available in most cases within one to three days.

The Santa Ana, California, company said that it has sought, but has been refused, additional financing by its lenders.

It’s unclear what would happen to its students. It has more than 100 campuses in the U.S. and Canada as well as online classes. Everest and Heald offer programs in the health care, business and computer technology fields. WyoTech trains students on motorcycle repair, automotive technology and air conditioner installation.

A spokesman at Corinthian declined to comment Thursday.

The Education Department’s website says that students at schools that close before they complete their degree may be able to discharge federal loans. The department also works to find other options for students in order to finish their education.

According to the Education Department, Corinthian receives $1.4 billion in federal financial aid each year.

Shares of Corinthian Colleges Inc. fell 55 cents to 30 cents in afternoon trading Thursday. Its stock has lost 83 percent of its value this year.

Corinthian Colleges warns it may shut down

KDWN

NEW YORK (AP) — Corinthian Colleges, a for-profit education company with about 75,000 students nationwide, warned Thursday that it may fail as it clashes with U.S. regulators over student data.

In a filing with the Securities and Exchange Commission, Corinthian disclosed that the U.S. Department of Education has limited its access to federal funds after it failed to provide documents and other information to the agency.

That follows allegations that the company altered grades, student attendance records and falsified job placement data used in advertisements for its schools.

Shares in the company plunged 63 percent Thursday.

The department said that it heightened its oversight of the company after requesting data “multiple times” over the past five months. Regulators have grown increasingly concerned about inconsistencies in its job placement claims for graduates.

The Education Department has now limited the federal student aid funds available to the school and is now releasing those funds only 21 days after Corinthian submits student enrollment data, according to the filing.

Those funds are available in most cases within one to three days.

The Santa Ana, California company said that it has sought, but has been refused, additional financing by its lenders.

It’s unclear what would happen to its students and to the more than 100 colleges it operates in North America, including Everest, Heald and WyoTech, if the company fails.

A spokesman at Corinthian declined to comment Thursday.

The Department of Education website says that students at schools that close before they complete their degree may be able to discharge federal loans. The department also works to find other options for students in order to finish their education.

According the Education Department, Corinthian receives $1.4 billion in federal financial aid each year.

The company also offers online degrees.

Shares of Corinthian Colleges Inc. fell 53 cents to hit 32 cents in afternoon trading Thursday.

Corinthian Colleges warns it may shut down

KDWN

NEW YORK (AP) — The company that runs Everest, Heald and WyoTech colleges with about 75,000 students enrolled nationwide says it’s in danger of shutting down.

Corinthian Colleges Inc. disclosed Thursday that the U.S. Department of Education is limiting its access to federal funds after it failed to provide documents and other information to the agency. That follows allegations that the education company altered grades, student attendance records and falsified job placement data used in ads.

The Department of Education says Corinthian’s schools have to wait 21 days after submitting student enrollment data to receive money for federal student aid.

Due to the delay, Corinthian says it may not have enough money to continue to operate. It tried to borrow money, but lenders have declined to offer financing, Corinthian said in a government filing.