Corinthian Colleges
Formerly one of the largest for-profit post-secondary education companies in North America, Corinthian Colleges collapsed in 2015 after extensive regulatory scrutiny, litigation, and allegations of deceptive practices.
Last updated August 22, 2026
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Overview
Corinthian Colleges, Inc. was a for-profit post-secondary education company that operated career-oriented schools in the United States and Canada. Founded in 1995 by former National Education Centers executives, the company pursued a strategy of acquiring vocational and career colleges that it believed could be expanded or improved, while also growing through new campuses and online education. At its height, its school network included more than one hundred campuses operating under the Everest, Heald, and WyoTech names. The company offered diplomas, certificates, associate degrees, and, through some institutions, bachelor's and master's degrees. Its academic areas included health care, business, criminal justice, information technology, transportation and automotive technology, construction trades, and other technical occupations. The portfolio included Everest Institute, Everest College, Everest University, Everest University Online, Heald College, WyoTech, and other acquired vocational-school operations. Corinthian also acquired QuickStart Intelligence in 2012, adding a technology-training business and a source of non-government revenue. Corinthian's expansion depended substantially on student financial aid. In 2010, it reported that 81.9 percent of its revenue came from federal Title IV programs, below the statutory 90 percent limit applicable to for-profit institutions. The company reported 77,584 students at the end of 2013 and approximately 15,200 North American employees as of June 2013. Its schools nevertheless faced declining enrollment, student-loan repayment concerns, and growing scrutiny over recruitment, job-placement representations, lending practices, and compliance with state and federal rules. Investigations and lawsuits intensified from 2013 onward. California authorities alleged that Corinthian used misleading employment and job-placement information, predatory advertising, improper use of military imagery, and aggressive recruitment directed at economically vulnerable people. The Consumer Financial Protection Bureau investigated the company's private student-loan practices, while the Securities and Exchange Commission also examined the company. Corinthian disputed the allegations and said its schools and lending programs served students who otherwise might not have access to post-secondary education. In July 2014, the company agreed to close twelve schools and sell eighty-five others. Educational Credit Management Corporation acquired more than half of the remaining campuses in February 2015 and operated some of them under the Altierus Career College name. Ontario suspended Corinthian's operating license on February 19, 2015, immediately closing all fourteen of the company's Ontario campuses. On April 26, Corinthian announced that its remaining U.S. locations would cease operations the following day, affecting more than 16,000 students and employees. Corinthian and twenty-four subsidiaries filed for Chapter 11 bankruptcy in Delaware on May 4, 2015. The successor and remnant operations gradually disappeared. The last three campuses associated with the Altierus network closed in 2022. That same year, the U.S. Department of Education announced cancellation of $5.8 billion in federal student-loan debt for approximately 560,000 borrowers who attended Corinthian schools between 1995 and 2015. The company is therefore defunct, but its history remains significant in debates about for-profit higher education, student debt, recruitment ethics, accreditation, federal oversight, and borrower relief.
History
Corinthian Colleges was established in February 1995 by David Moore, Paul St. Pierre, Frank McCord, Dennis Devereux, and Lloyd Holland, executives associated with National Education Centers, a California operator of vocational schools. Its initial strategy was to acquire schools that were considered fundamentally viable but underperforming, then expand their enrollment, programs, and geographic reach. The company grew through acquisitions and organic campus development, eventually assembling a large network of career colleges in the United States and Canada. The company's principal brands were Everest, Heald, and WyoTech. Everest schools operated in several formats: Everest Institute generally focused on diploma programs; Everest College offered diplomas and associate degrees; and Everest University offered programs ranging from diplomas to graduate degrees. Everest University Online extended the model through distance learning. Heald College, whose institutional history reached back to the nineteenth century, operated campuses in California, Oregon, and Hawaii and offered certificates, diplomas, and associate degrees. Corinthian acquired Heald's parent company for a reported $395 million in 2009 and completed the transaction in January 2010. WyoTech specialized in mechanical, automotive, and technical training at campuses in states including Wyoming, California, Florida, and Pennsylvania. Corinthian also pursued technology education. In 2012 it acquired QuickStart Intelligence, an Irvine-based technology-training company. The acquisition was described as supporting business-to-business revenue and helping provide the non-government funding required under federal rules governing the proportion of revenue that for-profit schools could receive from Title IV aid. Corinthian reported that 81.9 percent of its 2010 revenue came from Title IV programs. Its reported student population reached 77,584 at the end of 2013, while its North American workforce was approximately 15,200 in mid-2013. Despite its scale, Corinthian faced concerns about enrollment, student-loan repayment, recruitment, and the accuracy of employment outcomes. A three-year cohort default rate supplied to the company in 2013 gave its institutions a weighted average of 19 percent for the relevant 2010 cohort, down from 28 percent for the preceding cohort; none exceeded the applicable federal threshold for that cohort. Nevertheless, the broader financing model and the experiences of former students became subjects of increasing public and governmental attention. California authorities alleged that Corinthian recruited vulnerable job seekers through persistent internet, telephone, and daytime television advertising, and that internal materials characterized its intended audience in disparaging and exploitative terms. Lawsuits and investigations also addressed alleged inflation or misrepresentation of job-placement rates, deceptive advertising, improper use of military seals, securities disclosures, and the operation of private student loans. Corinthian denied wrongdoing and criticized the California complaint as relying on misquoted or misunderstood materials. The SEC disclosed an investigation in 2013, and the CFPB separately examined the company's lending practices. The pressure produced a major restructuring. In July 2014 Corinthian agreed to close twelve schools and sell eighty-five others. ECMC acquired more than half of the remaining campuses in February 2015 and assumed operations of some schools under the Altierus Career College brand, while agreeing to forgive certain Corinthian Genesis loans. Ontario then suspended Corinthian's license on February 19, 2015, closing all fourteen Canadian Everest campuses. On April 26, Corinthian announced that its remaining U.S. campuses would close on April 27. The company and twenty-four subsidiaries filed for Chapter 11 bankruptcy in Delaware on May 4, 2015. The corporate brand disappeared, but successor campuses continued for several years. The last three campuses associated with the Altierus remnant closed in 2022. On June 1, 2022, the U.S. Department of Education announced cancellation of $5.8 billion in federal loans for approximately 560,000 Corinthian borrowers who attended between 1995 and 2015. The action became one of the largest student-loan discharges in U.S. history and cemented Corinthian's importance as a case study in the risks and regulatory challenges of large-scale for-profit education.
- 2022
Federal student loans are discharged
[1]The Department of Education announces cancellation of $5.8 billion owed by approximately 560,000 Corinthian borrowers.
- 2015
Canadian campuses close
[1]Ontario suspends Corinthian's license, resulting in the closure of fourteen Everest campuses.
- 2015
U.S. operations end and bankruptcy follows
[1]Remaining U.S. locations close in April, and Corinthian plus twenty-four subsidiaries file Chapter 11 in May.
- 2014
Restructuring plan announced
[1]Corinthian agrees to close twelve schools and sell eighty-five others.
- 2013
Regulatory investigations intensify
[1]The company discloses SEC scrutiny, while the CFPB and California authorities pursue separate investigations or proceedings.
- 2012
QuickStart Intelligence is acquired
[1]Corinthian adds an Irvine-based technology-training company to its portfolio.
- 2010
Heald acquisition is completed
[1]Corinthian completes the Heald transaction and retains the Heald name.
- 2009
Heald acquisition is announced
[1]Corinthian announces the purchase of Heald's parent company for a reported $395 million.
- 1995
Corinthian Colleges is founded
[1]Former National Education Centers executives establish Corinthian Colleges in California as a for-profit operator of career schools.
Products and positioning
For-profit career and vocational education
Career and vocational education
Everest
The Everest network included Everest Institute, Everest College, Everest University, and online programs. Depending on campus and accreditation, offerings ranged from diplomas and certificates to associate, bachelor's, and master's degrees. Subject areas included health care, business, criminal justice, information technology, and technical fields.
Career college
Heald College
Heald College operated in the western United States and offered certificate, diploma, and associate-degree programs, particularly in business, health care, and office or technical careers. Corinthian acquired its parent company in 2009–2010 and continued using the established Heald name.
Technical and automotive training
WyoTech
WyoTech provided hands-on preparation for mechanical, automotive, transportation, and other technical occupations. Its campuses included locations in Wyoming, California, Florida, and Pennsylvania, although most closed during or after Corinthian's collapse.
Technology training · 2012
QuickStart Intelligence
Acquired in 2012, QuickStart Intelligence was a privately held technology-training business that broadened Corinthian's portfolio beyond traditional adult career-college programs and contributed business-to-business revenue.
Controversies
2015
Collapse and bankruptcy
After campus closures, license suspension, and unsuccessful restructuring, Corinthian ended operations and filed for bankruptcy protection.
2013
Alleged deceptive recruitment and employment claims
California authorities alleged that Corinthian used misleading advertising and job-placement representations and recruited economically vulnerable people through aggressive marketing. Corinthian denied the allegations.
2013
Student-lending and regulatory investigations
The SEC and CFPB investigated aspects of Corinthian's disclosures and private student-loan practices, while state and federal authorities examined broader compliance issues.
Brand decisions
2022
Federal borrower reliefStrategyBackground
Former students faced federal loan obligations connected with a defunct institution that had been the subject of extensive investigations and litigation.
Action taken
The Department of Education announced a $5.8 billion discharge for approximately 560,000 Corinthian borrowers.
Aftermath
The discharge became a landmark action in the federal response to the collapse of a large for-profit education provider.
Federal student-loan debt discharged. $5.8 billion outstanding for covered borrowers → $0 owed on the discharged debt (2022 announcement covering borrowers who attended Corinthian schools from 1995 to 2015)
2015
End U.S. campus operationsOtherBackground
The company faced continuing legal and regulatory challenges and could not complete a viable sale or restructuring of all remaining schools.
Action taken
Corinthian announced that all remaining U.S. locations would cease operations on April 27.
Aftermath
More than 16,000 students and employees were affected, followed by Chapter 11 filings on May 4.
2014
Close and sell a substantial portion of the networkStrategyBackground
Regulatory proceedings, financial pressure, and declining enrollment constrained Corinthian's ability to operate its large campus portfolio.
Action taken
The company agreed to close twelve schools and sell eighty-five others.
Aftermath
ECMC acquired more than half of the remaining campuses in February 2015, but Corinthian's remaining operations soon closed.
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