Dive Brief:

• The U.S. Department of Education has found Corinthian Colleges Inc. consistently misrepresented student job placement rates in its Heald College chain, fining the shuttering for-profit education company $29.7 million.
• Inside Higher Ed reports the fine, which Corinthian plans to appeal, could effectively torpedo the planned sale of Heald Colleges by making the schools even less attractive to potential buyers.
• The department told Heald to stop enrolling students at its 12 campuses, most of which are located in California, after finding 947 misrepresentations about job placements, according to the article.

Dive Insight:

Corinthian has been shutting down or selling campuses nationwide after losing the trust of the federal government and running into trouble accessing student aid. The Consumer Financial Protection Bureau has also sued Corinthian for misrepresenting job placements and, in return, persuading students to take out risky private loans to fund an education at one of the company’s college sites. Many Corinthian students are refusing to pay their loans, and Inside Higher Ed points out that the Department of Education fine should help their case.

Corinthian recently tried to rally students on its Heald campuses to fight California Attorney General Kamala Harris’ decision to make any future buyers liable for the outcome of a pending lawsuit. The latest fine might make that argument a moot point.