Student aid woes cause Corinthian shares to tumble
- Fears that Corinthian College will face additional monitoring and be required to post a letter of credit or else lose access to federal student financial aid caused the for-profit education company's shares to drop more than 10% in trading Monday, down 27 cents to $2.47 per share.
- In a regulatory filing Monday, Corinthian reported that the Department of Education calculated its financial responsibility composite score at 0.9 for the fiscal year that ended June 30, just below the minimum threshold of 1.0.
- The company says that it actually posted a composite score of 2.1, excluding a $203.6 million impairment charge from 2011, and federal officials have agreed to discuss the issues.
From the article:
Corinthian Colleges tumbled more than 10 percent in Monday trading on worries that the for-profit education company will be subjected to additional monitoring and will need to post a letter of credit to maintain access to federal financial aid for students. THE SPARK: Corinthian said in a regulatory filing Monday that the Department of Education calculated its financial responsibility composite score for the fiscal year ended June 30 at just 0.9. ...
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