A unit of Santa Ana-based Corinthian Colleges Inc. has had $1 million in Cal Grant payments to students held up after it failed to file required documents that show financial and administrative stability, a news report said.
The report said Corinthian’s Heald College subsidiary missed a Dec. 31 deadline to file the documents. On Feb. 5, the for-profit schools operator told the California Student Aid Commission that it wouldn’t file, and gave no reason for failing to do so, according to the news report.
Payments to 4,500 students at 10 Heald College campuses in the state were halted as a result. Grants average $2,000 to $11,000 and are suspended until the commission meets this Friday.
The total withheld could rise to $14 million if the suspension stays in effect through June 30.
Heald campuses affected are in Northern and Central California.
Earlier this month, Corinthian received a delisting notice from Nasdaq for failing to file two quarterly reports and its annual report for its most recent year.
The company is in the process of winding down its operations and selling or closing campuses and programs.
