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In another development a heightened regulation of the for-profit school industry where federal financial aid available to schools will soon be tied to gainful employment statistics, Illinois-based Career Education Corp. has announced plans to close all of its 14 Sanford -Brown College campuses  across the country.

"Declining student enrollment and financial losses at our Career College campuses, combined with the ‘Gainful Employment’ regulations issued last year factored into our decision,” said Career Education Corp. interim CEO Ron McCray in a statement. “In making this decision, we have chosen a path of gradual discontinuation, or teach-outs, rather than closing schools immediately. We are committed to both the academic and personal success of the students enrolled in our programs. Teach-outs minimize potential negative impacts on faculty, students and staff members.”

According to its website, Career Education currently operates Sanford-Brown campuses in cities including  Atlanta, Brooklyn, Chicago, Dallas, Fort Lauderdale, Houston, Jacksonville, Las Vegas, New York City, Orlando, Seattle, San Antonio and Tampa, as well as online.

The Sanford-Brown closures are expected to impact about 8,600 students, according to Crain's Chicago Business.

The company also announced that it is attempting to sell Briarcliffe College, Brooks Institute and Missouri College.    It had previously announced that its interest in selling its Le Cordon Bleu Colleges of Culinary Arts schools as well.

 
 
Harrington College of Design in Chicago, a school owned by for-profit Career Education Corporation, is winding down operations with plans to enroll no new students and to transition its current students to Columbia College, Crain's Chicago Business reports
Harrington, which currently has about 250 undergraduates and about 100 master's and associate's degree program students in a variety of design fields, has experienced steep drops in enrollment and increasing financial deficits in recents years, according to the report.
Harrington announced that its students will matriculate into Columbia College starting in Fall 2015 with credits transferring and Harrington's lower tuition costs being honored.  The transition plan is subject to approval of the Higher Learning Commission, which may occur in June 2015.
 
 
New York's attorney general has entered into a $10.25 million settlement with one of the nation's largest for-profit school corporations after a two-year investigation into allegations of inflated job placement statistics and other misconduct relating to enrolling students.  Attorney General Eric T. Schneiderman announced that the settlement with Illinois-based Career Education Corporation "resolves an investigation that revealed that in disclosures made to students, accreditors, and New York State, CEC significantly inflated its graduates’ job placement rates. CEC will pay $9.25 million in restitution to students, a $1 million penalty, and has agreed to substantial changes in how the company calculates and verifies placement rates."  According to the attorney general's office, its investigation revealed that CEC inflated job placement statistics from at least 2009 through the spring of 2011."  CEC operates schools that enroll about 75,000 students nationwide, including the Sanford-Brown Institute, American InterContinental University, and Colorado Technical University.