Corinthian Colleges warns it may shut down

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Associated Press

Posted on June 19, 2014 at 11:02 AM

Updated Thursday, Jun 19 at 11:02 AM

NEW YORK (AP) — The company that runs Everest, Heald and WyoTech colleges with about 75,000 students enrolled nationwide says it's in danger of shutting down.

Corinthian Colleges Inc. disclosed Thursday that the U.S. Department of Education is limiting its access to federal funds after it failed to provide documents and other information to the agency. That follows allegations that the education company altered grades, student attendance records and falsified job placement data used in ads.

The Department of Education says Corinthian's schools have to wait 21 days after submitting student enrollment data to receive money for federal student aid.

Due to the delay, Corinthian says it may not have enough money to continue to operate. It tried to borrow money, but lenders have declined to offer financing, Corinthian said in a government filing.

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