The letter from state attorneys general to Education Secretary Arne Duncan also called for a clear process to be developed for defense to repayment claims.
A potential sign of things to come in California.
Corinthian Colleges lured students to its high-priced courses with the promise of an escape from poverty. But mired in tens of thousands of dollars of debt they will likely never be able to repay, many now feel more stuck than ever.
The Consumer Financial Protection Bureau is suing Everest College parent company Corinthian Colleges over an allegedly predatory private lending scheme.
The agreement would prevent the company’s campuses from shutting down immediately.
Midnight tonight is the deadline for the Department of Education to reach an agreement with collapsing for-profit college giant Corinthian.
The Education Department has agreed to provide Corinthian Colleges with $16 million in federal financial aid funding, allowing the company’s campuses to continue operations.
A delay in aid payments from the Department of Education may make Corinthian Colleges’ for-profit network “unable to continue as a going concern.” The stock is now hovering above 30 cents.