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California Suspends GI Benefits at Corinthian Colleges


The Chronicle of Higher Education ~ June 30, 2014. Two state agencies in California are taking steps that add to the pressure on Corinthian Colleges Inc., which is the subject of a high-profile investigation by the U.S. Department of Education.

The state’s Department of Veterans Affairs has said it will stop authorizing new education benefits for veterans planning to attend colleges operated by Corinthian, according to CBS13, a television station in Sacramento.

And the state’s attorney general, Kamala D. Harris, is asking a state court to force Corinthian “to tell prospective students the truth about the company’s dire financial situation and its agreement with the federal government to sell or close all of its schools,” according to a news release from her office.

The attorney general said the company was violating California’s false-advertising and unfair-competition laws through advertisements on websites of various colleges operated by Corinthian that tell prospective students the college will “be here when you need it most” or will provide career services to graduates for life.

Ms. Harris said she had asked the court for permission to supplement a complaint she filed against Corinthian in 2013 alleging “false and predatory advertising, intentional misrepresentations to students, securities fraud, and unlawful use of military seals in advertisements.”