CalVet Withdraws Approval for Corinthian Colleges

Effective today, the California Department of Veterans Affairs (CalVet) withdrew institutional approval at all institutions owned and operated in California by Corinthian Colleges, Inc. (CCI). This includes 23 Heald, Wyotech and Everest Colleges throughout California. CalVet took action after CCI failed to comply fully with provisions of an earlier suspension issued by the California State Approving Agency for Veterans Education (CSAAVE), a unit of CalVet. The withdrawal precludes CCI schools from receiving Veterans’ GI Bill education benefits from the U.S. Department of Veterans Affairs.

“CalVet takes very seriously our duty to ensure our California Veterans receive the education and training they are paying for with their earned GI Bill benefits,” said Keith Boylan, CalVet Deputy Secretary Veterans Services. “After CCI failed to comply with the provisions of the CSAAVE suspension, our action was required by law. This action removes uncertainty for Veteran students and allows them to move forward in finding alternatives for continuing their educational path.”

On June 26, 2014, CSAAVE suspended CCI schools due to the company’s filing with the U.S. Securities and Exchange Commission (SEC), indicating CCI is fiscally unstable and intends to sell or close some of its schools and to “teach out” students currently enrolled in their programs. The CalVet suspension gave CCI until August 23, 2014, to comply fully with CSAAVE directives and to demonstrate that it had found a buyer or had the financial resources to continue operation of its California schools.

Following the suspension of CCI schools, CSAAVE worked closely with CCI executives and the schools as well as other state and Federal agencies to minimize the impact of the suspension on our Veteran students. Between August 11, 2014, and August 22, 2014, CalVet staff visited 12 of the largest CCI school campuses and conducted Veteran student briefings that explained to Veteran students the role of CSAAVE in regulating schools and offered information about a wide range of resources and services available to assist impacted Veteran students and their families. CSAAVE made a toll-free conference line available to Veteran students unable to attend the briefings. CSAAVE also posted CCI information on our CalVet web site.


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