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For-profit education company Corinthian Colleges to sell 85 campuses, close 12 others

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WASHINGTON - The troubled for-profit education company Corinthian Colleges Inc. and the Education Department have reached an agreement that has 85 of the company's 100-plus campuses going up for sale and 12 others closing.

The department put California-based Corinthian on heightened financial monitoring last month with a 21-day waiting period for federal funds. That came after Corinthian failed to provide adequate paperwork and comply with the department's requests to address concerns about the company's practices.

Those concerns included allegations of falsifying job placement data used in marketing claims to prospective students, and allegations of altered grades and attendance.

The sides earlier reached an initial agreement that allowed the company to obtain an immediate $16 million in federal student aid funds to keep operating. But a more detailed plan will be worked out.

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