Hold up on aid threatens for-profit college
A student walks into a building at Heald College, part of the for-profit Corinthian Colleges Inc.. The business, which offers everything from degree programs to trade schools, is heavily dependent on federal student aid.
The U.S. Department of Education is tightening the screws on Corinthian Colleges Inc., the parent company of Everest, Heald and WyoTech for-profit colleges.
The federal body charges that Corinthian is evading questions about improper marketing to prospective students and allegations that some schools changed students' grades and altered attendance reports.
Corinthian will be prohibited from accessing any federal financial aid funds for 21 days, a sharp blow to a company that relies on those funds for the majority of its income. In a report filed with the S.E.C, Corinthian said "...the company's cash flows will not be sufficient to meet its obligations as they become due, which would cause the company to be unable to continue as a going concern."
If the company shutters schools, Corinthian's approximately 72,000 students, who are enrolled in everything from degree programs to trade schools, will need backup plans. It's not clear just yet what their options will be.