COSTAR: Sanford-Brown Colleges Shutting Down Operations Across the Country

Career College Central Summary:

More fallout from new federal education rules for student financial aid that kicked in on for-profit colleges last week: Sanford-Brown College, which operates 18 career colleges, announced it will stop accepting new students and plans to phase out its brick-and-mortar schools in favor of online education.
The company said it plans to shift focus to its two online universities: Colorado Technical University and American InterContinental University as it completes a "teach-out" at its brick and mortar locations. A teach-out is a gradual discontinuation of operations that is intended to provide students a reasonable opportunity to complete their programs of study before a campus ultimately closes.
The closing of the campuses could take anywhere from 18 months to about three years.
Due to this closure, former students from Sanford-Brown are available for loan forgiveness.
New U.S. Dept. of Education rules took effect the first day of this month that are intended to strengthen the DOE’s oversight of certain career training programs.
To qualify for federal student aid, the law requires that most for-profit programs and certificate programs at private non-profit and public institutions prepare students for "gainful employment in a recognized occupation."

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