GI Bill Benefit Suspended for Corinthian Colleges, Inc.

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GI Bill Benefit Suspended for Corinthian Colleges, Inc.

Impacts Students at Heald, Wyotech and Everest Colleges

SACRAMENTO – In order to protect the GI Bill Education benefits for hundreds of California veterans, the California State Approving Agency for Veteran Education (CSAAVE) under the California Department of Veterans Affairs (CalVet) sent a “notice of Suspension” to all Heald, Wyotech and Everest Colleges in California owned and operated by the Corinthian Colleges, Inc.

The notice precludes the colleges from future enrollment or reenrollment of veterans that are utilizing their GI Bill education benefits to pay for their training.

“It is the responsibility of the state as the approving authority to ensure veterans are receiving the education and training that they are paying for with their GI Bill benefits,” said Keith Boylan CalVet Deputy Secretary for Veteran Services. “Corinthian Colleges and their schools have not been able to demonstrate to us that they have the financial resources to ensure the veterans enrolled in their programs will receive the education and training they are seeking.”

The suspension was initiated by CSAAVE as a result of the company’s filing with the U.S. Securities and Exchange Commission that it was intending to sell some of its schools and that it is has filed a plan with the U.S. Department of Education to provide a “teach-out” plan for its students that are currently enrolled in their programs if and when any of the schools are sold or need to close.

In their filing with the Department of Education, Corinthian Colleges, Inc. acknowledged that the federal department’s recent action to move the schools from advance payments system to financial oversight called “Heightened Cash Monitoring 1” put a financial burden on their company and could “cause the company to be unable to continue as a going concern.”

According to Boylan, the two filings with the federal government raised the level of concern for CSAAVE officials and CalVet felt it was prudent to act now rather than wait until veterans found themselves out of school and out of their GI Bill benefits.

The schools have 60 days to correct the discrepancies, comply with directives from CSAAVE and to provide CalVet with verifiable documentation that demonstrates compliance with acceptable standards. CalVet staff is working very closely with the schools as well as other state and federal agencies in order to minimize the impact of this suspension on the veterans.

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CalVet Withdraws Approval for Corinthian Colleges State Agency Assists Veterans

SACRAMENTO – 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.

For more information please visit our web site: www.calvet.ca.gov/VetServices/Pages/GI- ... ation.aspx.

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