For-Profit Corinthian College Goes Bankrupt

(RTTNews) - For-profit college Corinthian Colleges, which had announced ceasing of operations last week, filed for Chapter 11 bankruptcy on Monday. The company listed $143 million in debt and less than $20 million in assets.

The company, at one point of time, was one of the nation's largest for-profit college companies, with over 100,000 students.

However, it fell into hard times after charges arose about its predatory recruiting as well as false placement and graduation rates. Last year, the Department of Education suspended its access to the federal student aid.

Corinthian signed an operating agreement with the U.S. Department of Education that established an orderly transition plan for its 107 campuses and online programs, and allowed its students to complete their educational programs.

On April 26, the company said it has ceased substantially all operations and discontinued instruction at its remaining 28 ground campuses, adding that it was working with other schools to provide continuing educational opportunities for its about 16,000 students. Corinthian said those efforts depend to a great degree on cooperation with partnering institutions and regulatory authorities.

Campuses closed include Corinthian's 13 remaining Everest and WyoTech campuses in California, Everest College Phoenix and Everest Online Tempe in Arizona, the Everest Institute in New York, and 150-year-old Heald College—including its 10 locations in California, one in Hawaii and one in Oregon.