Corinthian Colleges Inc., owner of Everest College in Henderson, said the U.S. Department of Education will allow the company to access $16 million in student-aid funds as it seeks a buyer for most of its campuses.
Based in Santa Ana, Calif., the for-profit education company said last week it might have to cease operations after having its access to federal money for student loans and grants sharply reduced.
The agreement will allow Corinthian students to continue their education programs and preserve the value of the schools during the transition period, Corinthian said in a statement Monday.
Corinthian is one of the nation’s largest for-profit college corporations with some 81,000 students on more than 100 campuses in 25 states and Canada. The company has also been the subject of lawsuits and investigations by federal agencies and more than a dozen attorneys general, including California.
A spokeswoman for the Nevada Attorney General’s office said there were three complaints filed against Corinthian with their office, but declined to confirm or deny they were investigating the publically traded company.
Corinthian operates Everest College at 170 N. Stephanie St. in Henderson. Corinthian didn’t say which campuses will be sold over the next six months, but confirmed that no new students will be enrolled at the affected school and that all current students will be able to complete their programs or transfer to another institution.
The for-profit college offers degrees and certificates in accounting, business administration, criminal justice, medical administrative assistant, medical assistant, medical insurance billing and coding, nursing and paralegal.
On average, federal student-aid money is available to a school within three days, but the Education Department has added an additional 21-day waiting period before they can draw down money for federal student loans or grants. The Education Department said Corinthian receives $1.4 billion in federal financial aid annually.
Chris Kirkham, Los Angeles Times reporter
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