NEWS 8 INVESTIGATES
A News 8 investigation of Everest in 2010 found the company claimed graduates got jobs when they had none. News 8 discovered 288 jobs the school claimed for its students one at a company that did not exist, another in a company that was misrepresented.
Last week, after years of trying to extract information from Everest, the federal government threatened to cut off funds to the school.
At least 80 percent of Everest's cash flow comes from federal loans and grants to students, and Corinthian said the schools may have to close.
After reaching an agreement for $16 million in previously restricted Federal money, Corinthian now has enough money to let existing students finish their programs. No new students will be allowed to enroll.
The details of Corinthian's future will be outlined in an agreement with the federal government to be released by July 1.