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California Attorney General files lawsuit against for-profit colleges

SAN FRANCISCO, CA - OCTOBER 10:  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.  (Photo by Justin Sullivan/Getty Images)
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.
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Justin Sullivan/Getty Images
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California Attorney General files lawsuit against for-profit colleges
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.

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?

Guests:

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