Corinthian, Education Dept. in tentative agreement

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Associated Press

Posted on June 23, 2014 at 9:00 AM

Updated Monday, Jun 23 at 9:02 AM

SANTA ANA, Calif. (AP) — Corinthian Colleges Inc. and the U.S. Department of Education have reached an agreement that will allow the for-profit education company to receive an immediate $16 million in federal student aid funds.

On Thursday Corinthian cautioned that it may have to shut down because of its clash with U.S. regulators over student data. Corinthian, which owns the Everest College, Heald College and WyoTech schools, said then that the Education Department had limited its access to federal funds after it failed to provide documents and other information to them.

Corinthian said Monday that the memorandum of understanding reached will allow its schools to maintain daily operations without interruption. It currently serves about 72,000 students.

Details of the plan are expected to be finalized in an operating agreement by July 1.

Corinthian's stock rose more than 33 percent in premarket trading.

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