Corinthian Colleges, the for-profit education system that has come under fire for its predatory student loan schemes, said Sunday it would shut down all of its 28 remaining campuses, roughly two weeks after the U.S. Department of Education announced it would fine the institution $30 million for misrepresentation regarding job placement rates.
In a statement Sunday, Corinthian said it would close Heald College campuses in California, Hawaii, and Oregon, as well as Everest and WyoTec campuses in California, Arizona, and New York. At its peak, the California-based company ran more than 120 colleges across the country with more than 110,000 students.
This final shutdown will displace about 16,000 students.
“Students seeking better life options should be assured that their investments will pay off in increased knowledge, skills, and opportunity,” wrote Education Undersecretary Ted Mitchell in a blog post on Sunday following Corinthian’s announcement. “What these students have experienced is unacceptable.”
The company was first hit with a spate of lawsuits in September 2014 over its lending schemes and collection tactics, which charged that Corinthian preyed on low-income students by falsely advertising an education with their schools as an avenue to a stable career path.
Students whose campuses are closing may be eligible for closed-school loan discharges, Mitchell added on Sunday. “We will do everything we can to ensure that Corinthian makes good on its obligations to students and taxpayers to the extent possible. In addition, we encourage Corinthian students to pursue debt relief with their state,” Mitchell wrote.
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