Effect of Corinthian Colleges’ Closure on Student Financial Aid: Frequently Asked Questions Page: 2 of 10
The following text was automatically extracted from the image on this page using optical character recognition software:
Effect of Corinthian Colleges' Closure on Student Financial Aid
Corinthian Colleges, Inc. (CCI) was the parent company of several private, for-profit institutions
of higher education, including the Everest Institute, Everest Colleges, Heald Colleges, and
Wyotech Technical Schools. CCI operated more than 100 of these institutions across the nation,
with total enrollments of approximately 72,000 students who annually received roughly $1.4
billion in federal financial aid.
In summer 2014, the Department of Education (ED) limited CCI's access to federal student aid in
response to CCI's failure to address concerns relating to a variety of practices, including failing to
provide ED with requested data related to CCI's Title IV participation. To avoid abrupt closure of
its schools due to the financial stresses that the limited access to federal student aid put on CCI,
the company and ED reached an agreement under which CCI agreed to sell or "teach-out" its
educational programs. Subsequently, the Zenith Education Group (Zenith) was formed by the
Education Credit Management Corporation (ECMC) as a nonprofit entity for the purpose of
buying a large portion of CCI's schools. Those CCI schools not purchased by Zenith closed.
This report answers several frequently asked questions regarding the effect of the sale and closure
of CCI's schools as they relate to former CCI students' student aid, including the following:
" Are former CCI students eligible to have their student loans discharged?
" How will the discharge of federal student loans affect former CCI students' future
eligibility for loans?
" Is there any relief for former CCI students who received Pell Grants?
" Is there any relief for former CCI students who received GI Bill benefits?
Additional information on the HEA federal student loan programs is available in CRS Report
R40122, Federal Student Loans Made Under the Federal Family Education Loan Program and
the William D. Ford Federal Direct Loan Program: Terms and Conditions for Borrowers, by
David P. Smole; and CRS Report RL31618, Campus-Based Student Financial Aid Programs
Under the Higher Education Act, by Alexandra Hegji and David P. Smole.
Additional information on the Pell Grant program is available in CRS Report R42446, Federal
Pell Grant Program of the Higher Education Act: How the Program Works and Recent
Legislative Changes, by Cassandria Dortch.
Additional information veterans' education benefits is available in CRS Report R42755, The
Post-911 Veterans Educational Assistance Act of 2008 (Post-911 GI Bill): Primer and Issues, by
Cassandria Dortch; and CRS Report R42785, GI Bills Enacted Prior to 2008 and Related
Veterans 'Educational Assistance Programs: A Primer, by Cassandria Dortch.
Additional information on institutional eligibility to participate in the Higher Education Act Title
IV federal student aid programs is available in CRS Report R43159, Institutional Eligibility for
Participation in Title IV Student Financial Aid Programs, by Alexandra Hegji.
Congressional Research Service
Here’s what’s next.
This report can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Report.
Effect of Corinthian Colleges’ Closure on Student Financial Aid: Frequently Asked Questions, report, June 17, 2015; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc821006/m1/2/: accessed October 18, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.