The for-profit college industry has been dealt a serious blow by the federal government. Corinthian Colleges, the largest of the companies, has reached an agreement with the government to begin closing some of its campuses.

Due to a series of lawsuits at the state level and an investigation by the U.S. Department of Education, the company has reached an agreement with the latter to stop operating. According to The New York Times, Corinthians is one of the largest for-profit college and trade school companies with around 72,000 students and more than 100 schools.The company owns Everest College, Heald College and WyoTech Schools.

Per the agreement, Corinthian will begin selling the majority of these schools in the next six months and will close about a dozen. The biggest problem for the company, according to The New York Times, will be finding buyers as college enrollment has declined among for-profit colleges.

The company accrued a loss of $94 million in the first nine months of the 2013-2014 fiscal year, as well as losing $28 million from its $46.6 million cash cushion. Its attempts to have "students with poor credit borrow money from private lenders have resulted in especially heavy losses," writes The New York Times.

A statement released by the company outlines how they will continue forward.

Aside from the abovementioned conditions, the Department of Education will assign an independent monitor to supervise the company's actions. This "independent compliance and business monitor" will liaise between the company and the department. He or she will also have full access to Corinthian's financial, personnel and operational records and will supervise "ongoing Title IV disbursements, campus sales and teach-outs, company expenditures, and document production related to the Education Department's requests for information."

Corinthian has also agreed to stop enrolling new students until July 8, by which time the monitor should have been chosen. The company will also explain to students, in writing, plans for their respective campuses and programs and hand over documents related to its 175,000 graduates by July 15.

"We are pleased to have reached an agreement with ED that helps protect the interests of our students, employees and other stakeholders," said Jack Massimino, Corinthian chairman and CEO in the statement. "This agreement allows our students to continue their education and helps minimize the personal and financial issues that affect our 12,000 employees and their families. It also provides a blueprint for allowing most of our campuses to continue serving their students and communities under new ownership."

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