Corinthian Colleges Inc., the struggling for-profit higher education company that recently agreed to sell of close its 107 campuses, is facing two new challenges, according to The Chronicle of Higher Education.
In a regulatory filing on Monday, the company disclosed that it was under investigation by the U.S. Consumer Financial Protection Bureau (CFPB) for alleged violations of the Dodd-Frank Act and the Fair Debt Collection Practices Act. The agency appears willing to discuss a possible settlement if Corinthian agreed to a list of conditions. They would include ceasing the sale or transfer of private student loans, providing prospective students with more information about the company's financial problems, and providing students nationwide, as well as the bureau, with details about the possible sale of Corinthian's assets. The bureau has given the company until Friday to respond to the conditions.
Separately, California's Department of Veterans Affairs (CalVet) took steps on Monday to withdraw institutional approval at all institutions in the state that are owned and operated by Corinthian. The move would preclude those campuses from receiving federal GI Bill education benefits from the U.S. Department of Veterans Affairs.
In June the state agency, suspended GI Bill eligibility for Corinthian institutions after the company revealed it was in financial straits. CalVet took further action after the company failed to comply fully with the provisions outlined in that suspension.
Related Links
The Chronicle of Higher Education
http://chronicle.com/blogs/ticker/u-s-and-calif-agencies-put-new-restrictions-on-corinthian-colleges/84673
U.S. Securities and Exchange Commission Filing
http://www.sec.gov/Archives/edgar/data/1066134/000110465914062927/a14-19968_18k.htm
CalVet Press Release
https://www.calvet.ca.gov/Pages/CalVet-WithdrawsApproval-for-Corinthian-Colleges.aspx