Corinthian Signs Operating Agreement With U.S. Department Of Education

(RTTNews) - Corinthian Colleges, Inc. (COCO), which is under investigation on allegations of grades and job placement data, said it has signed an operating agreement with the U.S. Department of Education that establishes an orderly transition plan for its 107 campuses and online programs, and allows its students to complete their educational programs.

ED has also provided for an immediate drawdown of Title IV funds for currently enrolled students and a mechanism for continued funding while the agreement is in place.

Under the terms of the agreement, Corinthian will put 85 of its U.S. schools up for sale, and "teach out" operations at 12 other schools.

Corinthian agreed to work toward signing definitive agreements for campus sales in about six months. Separately, the company will also begin a sales process for its Canadian schools.

ED will also appoint an independent compliance and business Monitor who will serve as the primary liaison between Corinthian and ED.

Corinthian has agreed to suspend enrollment of new students until July 8, when ED and Corinthian plan to have the Monitor in place.

Last month, Corinthian said ED transferred all company schools from Advance Payment to Heightened Cash Monitoring 1 or HCM1, as a result of the extended time the company has taken to provide documents and data requested by ED.