Corinthian Bankruptcy Caps Biggest U.S. Education Meltdown
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Corinthian Colleges Inc. filed for bankruptcy, a week after closing its remaining 28 for-profit career schools in the biggest collapse in U.S. higher education.
Corinthian’s meltdown began last year after the U.S. Education Department reduced its access to federal student aid. The company agreed to sell half its 107 campuses to Education Credit Management Corp. in November amid allegations that it falsified grades, attendance and job-placement rates. Corinthian received $1.4 billion in federal student aid in 2013 alone.