Senators Urge VA to Give Student Vets Much Needed Advice to Help Navigate Corinthian Bankruptcy

(Washington, DC) – Today, U.S. Senators Richard Blumenthal (D-Conn.), Mazie K. Hirono (D-Hawaii), Dick Durbin (D-Ill.), Edward J. Markey (D-Mass.), Dianne Feinstein (D-Calif.), Tammy Baldwin (D-Wis.), Charles E. Schumer (D-N.Y.), Sherrod Brown (D-Ohio), Barbara Boxer (D-Calif.), and Ron Wyden (D-Ore.) urged the Department of Veterans’ Affairs (VA) Secretary Robert McDonald to give student veterans much needed advice to help navigate the Corinthian Colleges bankruptcy, which was filed on May 4. In a letter to VA Secretary McDonald, the senators requested VA provide information that addresses specific veteran student needs following the closures of 28 schools, as hundreds of veterans used taxpayer-funded post-9/11 GI Bill benefits to enroll at Corinthian Colleges.

“These veteran students, many of whom fell victim to Corinthian’s predatory marketing schemes and fraudulent job placement information, are in urgent need of guidance regarding the effect the bankruptcy and closures will have on them,” the senators wrote.

“We are aware that VA has posted some limited information online, including a copy of the letter that Corinthian sent to students and details about informational meetings that Corinthian will hold at their facilities. However, this fails to address the particular and immediate needs of affected veteran students.”

“We are also working to give the VA additional authority to provide meaningful relief to veteran students receiving GI Bill benefits who have been harmed by a school closure, and we urge you to work with us toward that common goal – most urgently, ensuring that these veteran students are not further harmed by Corinthian’s misconduct.

“This company’s failure should be a clarion call to action for stronger veteran protections against predatory for-profit schools.” 

Full text of the letter can be viewed here and below.

Dear Secretary McDonald,

On a recent Monday morning, veteran students attending Corinthian Colleges, Inc. schools across the country showed up on campus only to find the doors locked. The catastrophic collapse of the for-profit Corinthian, which culminated in the closure of 28 schools and a bankruptcy filing last week, has left thousands of students in the lurch – including hundreds of veterans who used taxpayer-funded Post-9/11 GI Bill benefits to enroll. These veteran students, many of whom fell victim to Corinthian’s predatory marketing schemes and fraudulent job placement information, are in urgent need of guidance regarding the effect the bankruptcy and closures will have on them. We request that the Department of Veterans Affairs (VA) immediately contact every veteran who was enrolled at a Corinthian school and provide thorough guidance regarding this matter.

We are aware that VA has posted some limited information online, including a copy of the letter that Corinthian sent to students and details about informational meetings that Corinthian will hold at their facilities. However, this fails to address the particular and immediate needs of affected veteran students. VA must provide veteran students enrolled at Corinthian schools with information regarding:

1. The possibility of a housing allowance interruption, including:
   1. Steps that veteran students can take to minimize such an interruption;
   2. How VA will calculate housing allowances for students who were only enrolled in a school for part of a month; and
   3. Any VA emergency housing options that are available for affected students.
2. The effects of Corinthian’s bankruptcy and school closures on the GI Bill entitlement status of affected students.
3. The forgiveness options that are available to veteran students who also have federal Direct Loans from the Department of Education, including school-closure discharge and defense-to-repayment options, and how reenrolling at another school would affect the availability of those options.
4. How affected students can use the GI Bill Comparison Tool to find other institutions in their area that have been approved to receive GI Bill benefits. 

We are also working to give the VA additional authority to provide meaningful relief to veteran students receiving GI Bill benefits who have been harmed by a school closure, and we urge you to work with us toward that common goal – most urgently, ensuring that these veteran students are not further harmed by Corinthian’s misconduct. This company’s failure should be a clarion call to action for stronger veteran protections against predatory for-profit schools. Thank you for working with us to ensure that these veteran students receive the guidance they need. We look forward to your prompt response.

Sincerely,

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