For-profit college to sell most campuses - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

For-profit college to sell most campuses

Posted: Updated:
  • NationalMore>>

  • Peace talks eyed after Israel, Hamas cease-fire

    Peace talks eyed after Israel, Hamas cease-fire

    Tuesday, July 22 2014 11:23 AM EDT2014-07-22 15:23:36 GMT
    The U.S. and Egypt sought Tuesday to find an end to two weeks of bloodshed in the Gaza Strip, and officials raised the possibility of restarting stalled peace talks between Israel and Palestinian authorities as a...
    The U.S. and Egypt sought Tuesday to find an end to two weeks of bloodshed in the Gaza Strip, and officials raised the possibility of restarting stalled peace talks between Israel and Palestinian authorities as a necessary...
  • American Jews, other 'lone soldiers' serve Israel

    American Jews, other 'lone soldiers' serve Israel

    Tuesday, July 22 2014 11:07 AM EDT2014-07-22 15:07:36 GMT
    By JULIE WATSON Associated Press The two Americans killed in fighting in the Gaza Strip followed in the footsteps of scores of Jews from around the world who have volunteered to fight for Israel.
    By JULIE WATSON Associated Press The two Americans killed in fighting in the Gaza Strip followed in the footsteps of scores of Jews from around the world who have volunteered to fight for Israel.
  • Man accused of enslaving woman to be sentenced

    Man accused of enslaving woman to be sentenced

    Tuesday, July 22 2014 11:07 AM EDT2014-07-22 15:07:01 GMT
    A man accused of enslaving a mentally disabled woman in northeast Ohio is set to be sentenced in federal court in Youngstown.
    A man convicted of enslaving a mentally disabled woman in northeast Ohio could receive life in prison when he's sentenced Tuesday in federal court in Youngstown.
By KIMBERLY HEFLING
AP Education Writer

WASHINGTON (AP) - The troubled for-profit education company Corinthian Colleges Inc. and the Education Department reached an agreement late Thursday that has 85 of the company's 100-plus campuses going up for sale, and 12 others closing.

Corinthian owns Everest College, Heald College and WyoTech schools. It serves about 72,000 students in 26 states and Ontario, Canada, and receives about $1.4 billion in federal financial student aid annually. The highest concentrations of students are in California, Florida and Texas. Students generally receive career training in areas such as auto mechanics or health care.

Jack Massimino, Corinthian's chairman and chief officer, praised the agreement in a statement.

"This agreement allows our students to continue their education and helps minimize the personal and financial issues that affect our 12,000 employees and their families," Massimino said. "It also provides a blueprint for allowing most of our campuses to continue serving their students and communities under new ownership."

The company declined to identify the schools that will close.

Ted Mitchell, the undersecretary at the Education Department, said the agreement will "protect students' futures and fulfill the department's responsibilities to taxpayers moving forward."

"Ensuring that Corinthian students are served well remains our first and most important priority, and we will continue to work with Corinthian officials and the independent monitor on behalf of the best interests of students and taxpayers," Mitchell said.

The department put Santa Ana, California-based Corinthian on heightened financial monitoring last month with a 21-day waiting period for federal funds. That came after Corinthian failed to provide adequate paperwork and comply with the department's requests to address concerns about the company's practices. The department said the concerns included allegations of falsifying job placement data used in marketing claims to prospective students, and allegations of altered grades and attendance.

The sides earlier reached an initial agreement that allowed the company to obtain an immediate $16 million in federal student aid funds to keep operating. But a more detailed plan was to be worked out that spelled out the future of the campuses.

Under the terms of the agreement, the campuses will inform students of their options and each campus will have a plan that allows students to complete their program, if they choose to do so. The company has agreed to only use federal aid funds for daily operations and will hire an independent monitor. Under a number of circumstances, students will be eligible for a refund paid for using a reserve fund of at least $30 million from Corinthian's funds.

The company faces multiple state and federal investigations. California Attorney General Kamala Harris has sought a court order that would force the company to stop advertising and to start telling prospective students that it is looking to sell or shut down its colleges.

___

Follow Kimberly Hefling on Twitter: http://twitter.com/khefling

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • InternationalMore>>

  • EU imposes new sanctions against Russian officials

    EU imposes new sanctions against Russian officials

    Tuesday, July 22 2014 11:30 AM EDT2014-07-22 15:30:08 GMT
    A train bearing the bodies of the people who died in the Malaysia Airlines crash arrived in the eastern Ukrainian city of Kharkiv on Wednesday on their way to the Netherlands.
    The European Union agreed Tuesday to impose new sanctions against officials deemed responsible for Russia's actions in Ukraine, amid mounting international anger after a Malaysia Airlines plane was shot down over...
  • Obama sends top aides to Germany amid spying cases

    Obama sends top aides to Germany amid spying cases

    Tuesday, July 22 2014 11:30 AM EDT2014-07-22 15:30:02 GMT
    President Barack Obama has dispatched two senior advisers to Germany in an apparent effort to soothe tensions following new allegations of American spying.
    President Barack Obama has dispatched two senior advisers to Germany in an apparent effort to soothe tensions following new allegations of American spying.
  • Peace talks eyed after Israel, Hamas cease-fire

    Peace talks eyed after Israel, Hamas cease-fire

    Tuesday, July 22 2014 11:23 AM EDT2014-07-22 15:23:36 GMT
    The U.S. and Egypt sought Tuesday to find an end to two weeks of bloodshed in the Gaza Strip, and officials raised the possibility of restarting stalled peace talks between Israel and Palestinian authorities as a...
    The U.S. and Egypt sought Tuesday to find an end to two weeks of bloodshed in the Gaza Strip, and officials raised the possibility of restarting stalled peace talks between Israel and Palestinian authorities as a necessary...