Corinthian Colleges Inc., one of Americans larger for-profit higher education companies, enrolling some 86,088 students, announced that it’s closing several campuses.
According to a corporate filing the institution submitted on Monday:
On February 28, 2012, the Board of Directors (the “Board”) of Corinthian Colleges, Inc. (“Corinthian” or the “Company”) approved a plan (the “Plan”) to streamline operations of certain of its Everest College, Everest Institute, and Everest University ground campuses. The Company has completed a comprehensive review of the five-year performance of each of its schools in terms of student outcomes and financial performance. Based on that review, the Board approved the Plan to sell four campuses and teach out three campuses.
“Teach Out” means shutting the schools down. Apparently the schools slated for closure were those that failed to mean minimum standards for default rates on student loans.
In 2009 Stephen Burd wrote an article for this magazine about for-profit colleges and the student loan industry. The student he profiled had attended a Corinthian college.
According to a recent press release by the company, in 2012 Corinthian will “continue to pursue several growth initiatives, such as introducing new program offerings, opening new campuses, and growing our exclusively online enrollments. In the last half of fiscal 2012, we expect new enrollments to be slightly positive.”
Students now enrolled in the closed programs, however, will still have to pay back their loans.