For-profit college firm doesn't seal deal with feds

Textbooks sit on the shelf at Quantumbooks August 16, 2005 in Boston, Massachusetts. (Joe Raedle, Getty Images)
The for-profit education company Corinthian Colleges, with 72,000 students, is under financial observation from the federal Education Department. (Joe Raedle, Getty Images)
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Updated: 7/02 10:13 am

WASHINGTON (AP) — The troubled for-profit education company Corinthian Colleges Inc. and the Education Department have failed to meet a deadline to map out the future of the company's more than 100 campuses. But both sides are expressing optimism that a deal will soon be reached.

Corinthian owns Everest College, Heald College and WyoTech schools. It serves about 72,000 students in 26 states and Ontario, Canada.

Last month, the Education Department put Corinthian on heightened financial monitoring with a 21-day waiting period for federal funds. That came after Corinthian failed to comply with the department's requests to address concerns about Corinthian's practices. Those concerns included allegations of falsifying job placement data used in marketing claims to prospective students, and allegations of altered grades and attendance.

In June the company and the Education Department said they reached a memorandum of understanding that would allow the company to keep operating with federal funds. That was supposed to have been finalized by July 1.

 

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