Dive Brief:
- Corinthian Colleges Inc. has revealed in a securities filing that the government may take legal action against it.
- The for-profit college company says the government is expected to seek "injunctive and monetary relief" over alleged violations of the Consumer Financial Protection Act of 2010.
- Last month, ITT Education Services made a similar statement in its Securities and Exchange Commission filing.
Dive Insight:
News of an investigation is not a surprise; since at least November the Consumer Financial Protection Bureau has been looking into possible illegal activity related to student loans and for-profit colleges. Any legal action would send an even clearer warning signal to for-profit schools.