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California Attorney General files lawsuit against for-profit colleges

by AirTalk®

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California Attorney General Kamala Harris points to a map as she speaks during a news conference on October 10, 2013 in San Francisco, California. Harris announced the filing of a lawsuit against the for-profit Corinthian Colleges and its subsidiaries for alleged false advertising, securities fraud, intentional misrepresentations to students and the unlawful use of military insignias in advertisements. Santa Ana, California-based Corinthian Colleges operates 111 total campuses in North America with 24 Heald, Everest and WyoTech colleges in California that have an estimated 27,000 students. Justin Sullivan/Getty Images

California Attorney General Kamala Harris filed a lawsuit against Corinthian Colleges, Inc and its subsidiaries, which run a number of for-profit colleges across the country, claiming that they lied to students and investors about job-placement prospects, as well as illegally using military seals in their ads to attract veteran students.

Corinthian runs a total of 111 campuses in North America and three online programs. One-third of the company’s 81,000 students reside in California. According to the suit filed by the AG’s office, the company charges close to $40,000 in tuition for an associate’s degree and boosts an unrealistically high job placement rates for certain programs it offers.

So, are for-profit universities preying on people looking for a higher education, or do they help people find a way to get that college degree that could help them advance professionally and personally?


Suzanne Martindale, staff attorney at Consumers Union, the policy and action division of Consumer Reports

Neal McCluskey, associate director of the Cato Institute’s Center for Educational Freedom

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