WASHINGTON, July 4 (UPI) -- Corinthian Colleges Inc., one of the largest U.S. for-profit chains, has submitted a plan to shut down in six months, selling most of its operations.
Under the proposal filed late Thursday after lengthy negotiations with the U.S. Department of Education, Corinthian would receive $35 million in federal funding while it closes down. The company operates 107 campuses in the United States and said it hopes to sell 85 of them as well as additional operations in Canada and close 12.
An independent monitor would oversee Corinthian during the shutdown.
"Ensuring that Corinthian students are served well remains our first and most important priority," U.S. Education Undersecretary Ted Mitchell said in a statement. "We will continue to work with Corinthian officials and the independent monitor on behalf of the best interests of students and taxpayers."
Corinthian and other for-profit colleges have been under pressure from the Obama administration, which is developing new regulations to cut off federal aid to those with high default rates on student loans. The New America Foundation says that Corinthian has one of the worst records.
Earlier this week, as Corinthian missed a July 1 deadline to file its plan, the company announced it would sell Heald Colleges, a company it acquired in 2009. Heald, founded 150 years ago, operates regionally accredited two-year institutions in California, Oregon and Hawaii.