Corinthian Colleges: School Closures To Impact 3,400 Students - Update

(RTTNews) - Corinthian Colleges Inc. (COCO) said Monday its plans to close down a dozen of its Everest schools will affect more than 3,400 students.

Corinthian, based in Santa Ana, California, said students will be allowed to complete their education at the schools before they close, or they can transfer to another institution. The education company noted that the affected schools will continue to be run until there are no more students enrolled. Also, Corinthian has allocated $30 million to pay students at these campuses that wish to withdraw and request a refund.

Last week, Corinthian, which is under investigation on allegations of grades and job placement data, reached a deal with the U.S. Department of Education for an orderly transition plan for its 107 campuses and online programs.

As per that deal, Corinthian will put 85 of its U.S. schools up for sale, and "teach out" operations at 12 other schools. Corinthian hopes to sell the 85 schools in six months, and will also begin a sales process for its Canadian schools.

Included in the 12 schools that are being closed are two in the Washington, DC-metro area, two near Detroit and one in Salt Lake City.

COCO closed Monday at $0.23, down 0.06 or 20.77%, on a volume of 10.5 million shares on the Nasdaq.