Corinthian Colleges, a for-profit college company, has stopped operating and closed its remaining 28 campuses, according to a statement released Monday by the company.
The closures come about 10 months after Corinthian first disclosed it was under federal investigation.
About 16,000 students were still attending the schools run by the company in California, Hawaii, Oregon, New York and Arizona until Sunday.
Because many of the campuses are accredited as career colleges, students will face an uphill battle in transferring their credits to community colleges or four-year institutions, Russ Heimerich, a spokesman for California’s Department of Consumer Affairs told the Los Angeles Times.
Students will be eligible to have their federal student loans discharged due to the closings, something a group of students from still-operating schools Corinthian was able to sell last year is currently lobbying the Department of Education to do.
Corinthian’s slow-motion collapse began with last year’s federal investigation. When the company did not provide documents the Department of Education requested, the department put a 21-day hold on student federal aid funds going to the company’s schools. Without enough cash-on-hand to continue operating, the company negotiated the sale of the bulk of its campuses. Earlier this month, the Department of Education fined Corinthian $30 million because its investigation found campuses that had falsified graduate employment data reported to the department.
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