Zenith gets $250M in support of Corinthian revamp
- Zenith Education, which purchased more than 50% of Corinthian Colleges' campuses after its collapse, has received a $250 million investment from a student loan guaranty agency to continue its expansion.
- The nonprofit career ed provider lost $100 million and 23,000 students after the purchase, a direct result of Corinthian declaring bankruptcy last May following a court order to pay back former students more than $800 million in tuition and fees.
- Zenith officials expect a slow rebuild as they look to strengthen and promote programs in allied health and information technology.
Even while under new management and the banner of a nonprofit institutional mission, the significant hit taken by Corinthian Colleges will not be lost on many consumers, who may be avoiding the brand and its associated campuses for fear of not being able to find employment after graduation.
The impact of the federal government's action against Corinthian appears to be dramatic and long-standing, and for the 500-plus schools on the federal watch list for financial risk, there is a real possibility of similar inquiry and media fallout if campuses don't act immediately to right size financial outlooks.
- Inside Higher Ed Next act for Corinthian campuses