Department Of Education Says It Is Not Responsible For Closing For-Profit College

Department Of Education Says It Is Not Responsible For Closing For-Profit College

“…The official said the department had expected Corinthian to react no differently than any other school that was placed under “heightened cash monitoring,” the government’s term for the penalty placed on Corinthian. More than 400 other schools are currently under heightened cash monitoring, the official said.

But Corinthian’s financial situation was different than almost any other school: It was already teetering on the edge of default and had a tiny amount of cash on hand, according to publicly available filings. In a May earnings report, Corinthian said it had breached the terms of its bank agreements and was in danger of defaulting on its credit lines with lenders. That report also showed that the cash the company had on hand had plummeted precipitously, from a healthy $209 million in 2010 to just $28 million in the last quarter…”

 

 

Seems like Corinthian stepped in it to me…

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