Controlled Crash? - Paul Fain, Inside Higher Ed

The U.S. Department of Education has until tomorrow to reach an agreement with Corinthian Colleges on a plan to sell or shut down the for-profit chain’s 107 campuses. If they fail, the federal government could lose more than $1.2 billion in discharged student loans. The document was in response to a lawsuit from California’s attorney general, Kamala D. Harris. Harris last week asked the court to make Corinthian stop recruiting new students. The company’s response to Harris’s legal challenge had a less restrained tone than the language in the June 19 corporate announcement, which calmly explained the for-profit's money crisis and possible closure. Since then officials from Corinthian have been in “around the-clock-negotiations” with the department and potential buyers of its assets, according to the legal document. They are seeking a soft landing for Corinthian’s 72,000 students and 12,000 employees. http://www.insidehighered.com/news/2014/06/30/corinthians-failure-could-cost-federal-government-12-billion