Hawaii offers resource guide after Heald College campuses shut down nationwide

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Corinthian Colleges shut down all of its remaining 28 ground campuses Monday, displacing about 16,000 students.

The announcement came Sunday, less than two weeks after the U.S. Department of Education announced it was fining the for-profit institution $30 million for misrepresentation.

In a statement, the Santa Ana, California-based company said it was working with other schools to help students continue their education.

The closures include Heald College campuses in California, Hawaii and Oregon, as well as Everest and WyoTech schools in California, Arizona and New York.

“Overall, our schools did a good job for the students they served and none of us believe they should have been forced to close. Corinthian Colleges tried hard to do everything it could to avoid this outcome. Unfortunately the current regulatory environment would not allow us to complete a transaction with several interested parties that would have allowed for our students to continue their education uninterrupted. We are now doing what we can for our students by trying to work with other schools to provide continuing educational opportunities.”

Corinthian was one of the country’s largest for-profit educational institutions. It collapsed last summer amid a cash shortage and fraud allegations.

The Education Department contends that Corinthian failed to comply with requests to address allegations of falsifying job placement data and altering grades and attendance records.


For affected Hawaii students:

Student meetings are scheduled for Wednesday and Thursday, April 29 and 30, on campus. The meeting times are split as follows:

  • Students with last names beginning with A through L, 10 a.m. – 1 p.m.
  • Students with last names beginning with M through Z, 1 p.m. – 4 p.m.

Corinthian says it will have copies of transcripts for current students at the meetings.

The State Department of Commerce and Consumer Affairs (DCCA) is advising Heald College students in Honolulu to obtain their academic, attendance and financial records as soon as possible.

“DCCA is working to obtain the latest information about the closure from Heald College-Honolulu. The department is monitoring the situation to determine what can be done to assist students going forward,” it said in a statement.

The Hawaii State Post-Secondary Education Authorization Program (HPEAP) is monitoring the situation closely and has created a resource guide to assist students who may be affected by the closure.

The resource guide will help students with information on obtaining academic and financial records, understanding available options, differentiating between teach out vs. transfer events, explaining loan discharge, and filing a claim with DCCA.

HPEAP operates within DCCA pursuant to Hawaii Revised Statutes Chapter 305J. The program was created in 2013 by Act 180 to provide regulatory oversight of accredited, degree-granting, post-secondary educational institutions that have a physical presence in the State. The purpose of the law is to meet the requirements for state authorization under Title IV of the Higher Education Act. For more information, call HPEAP at (808) 586-7327 or email hpeap@dcca.hawaii.gov.

For Hawaii, Corinthian posted an informational packet (PDF) for current students. Included are a lists of regulatory agencies, institutions that Heald has articulation agreements, and other institutions with similar programs.

For students with outstanding Federal students loans, the U.S. Department of Education has two websites that provide information concerning your rights and options.

https://studentaid.ed.gov/about/announcements/corinthian and https://studentaid.ed.gov/repay-loans/forgiveness-cancellation/closed-school.

More information from Corinthian:

Meanwhile the University of Hawaii is also offering assistance for displaced students.

“The UH Community Colleges have several programs that are similar to those offered by Heald College. We are working to create as smooth a pathway for those Heald students who wish to transfer to the community colleges and complete their education. Staff from the community colleges will be present at the meetings scheduled this week with Heald students,” said John Morton, vice president for community colleges.


From the Corinthian website (all Heald websites and social media accounts now post to this site):

Corinthian Announces Cessation of Effectively All OperationsAll campuses closed effective Monday, April 27SANTA ANA, Calif., April 26, 2015 – Corinthian Colleges, Inc. (Nasdaq: COCO) today announced that the Company has ceased substantially all operations and discontinued instruction at its remaining 28 ground campuses. The company is working with other schools to provide continuing educational opportunities for its approximately 16,000 students. Corinthian said those efforts depend to a great degree on cooperation with partnering institutions and regulatory authorities.Campuses closed include Corinthian’s 13 remaining Everest and WyoTech campuses in California, Everest College Phoenix and Everest Online Tempe in Arizona, the Everest Institute in New York, and 150-year-old Heald College-including its 10 locations in California, one in Hawaii and one in Oregon.Since signing an operating agreement with the U.S. Department of Education in July 2014, the Company has been focused on completing the orderly sale or wind-down of all of its schools. In November 2014, the Company announced that it had entered into an agreement to sell 56 Everest and WyoTech campuses to Zenith Education Group, Inc., a subsidiary of ECMC Group. As part of that sale, Zenith also agreed to conclude the teach-out process at 12 additional schools that were being closed. That transaction was completed in February of this year for all but three locations, the Everest College Phoenix campuses in Phoenix and Mesa, AZ, and Everest Institute in Rochester, NY. As a result of the sale, nearly forty thousand students were able to continue their studies and thousands of employees kept their jobs. Zenith has recently advised Corinthian that it will not consummate the purchase of Everest College Phoenix, and the closing conditions have not been satisfied for Everest Institute Rochester.In parallel, the Company had been in advanced negotiations with several parties to both sell the 150-year-old Heald College and to arrange for teach-out partners to allow its Everest College and WyoTech students in California to continue their education. The Company said these efforts were unsuccessful largely as a result of federal and state regulators seeking to impose financial penalties and conditions on buyers and teach-out partners.“We believe that we have attempted to do everything within our power to provide a quality education and an opportunity for a better future for our students,” said Jack Massimino, Chief Executive Officer of Corinthian. “Unfortunately the current regulatory environment would not allow us to complete a transaction with several interested parties that would have allowed for a seamless transition for our students. I would like to thank our employees for their selfless dedication and commitment to fulfilling the educational and career goals of all of our students.”The Company said that its historic graduation rate and job placement rates compared favorably with community colleges. Corinthian also said that approximately 40 percent of its students previously attended a traditional higher education institution where their needs had not been met before attending a Corinthian school.“Colleges like ours fill an important role in the broader education system and address a critical need that remains largely unmet by community colleges and other public sector schools,” Massimino said. “Overall, our schools did a good job for the students they served. We made every effort to address regulators’ concerns in good faith. Neither our Board of Directors, our management, our faculty, nor our students believe these schools deserved to be forced to close.”

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