Corinthian Colleges has announced the closure of its 28 ground campuses just two weeks after the US Department of Education fined the student-debt-fueled institution for $30 million based on falsified job placement data and other fraud allegations.
Corinthian said it was attempting to help students find other education outlets amid the unexpected closures of its 12 Heald College campuses in California, Hawaii, and Oregon, and 15 Everest and WyoTech schools in California, Arizona, and New York.
The unanticipated closures will affect around 16,000 students enrolled in Corinthian programs, AP reported.
Corinthian’s revenue doubled to $1.75 billion amid the Great Recession, from 2007 to 2011. The institution relied heavily on funding from federal student loans and grants. According to the company’s filings, Corinthian schools generated $1.2 billion in government loans in its last year.