Corinthian sees tighter loan policy

For-profit education company Corinthian Colleges Inc. said student loan company Sallie Mae would no longer provide serial sub-prime private loans for current students, adding to worries that Corinthian students would have difficulty funding their education.

Sallie Mae, the commonly used name for SLM Corp., will continue to fund all current sub-prime loans on the books but it will not provide new “serial,” or subsequent, loans for these students, Corinthian said in a securities filing.

Santa Ana-based Corinthian said it had earlier believed that Sallie Mae would provide serial loans for current students through the completion of their programs.

Corinthian shares rose 5 cents to $7.84.