CalVet Pulls Funding For Student Veterans Attending Corinthian Colleges

SACRAMENTO (CBS13) - CalVet withdrew approval at all California campuses mid-quarter. This is the latest hit to for-profit colleges, and it's left some military veterans scrambling.

After a 60-day suspension, CalVet has decided to pull the plug on the for-profit colleges.

"It's really put me in a hard spot," said Tim Bailey, a student and veteran attending Heald College.

Bailey was deployed to Iraq, but after coming home to Sacramento, he had high hopes of going back to school.

"I like the school; I picked it for a reason: I really like Heald College," he said.

Like many other veterans, Bailey relies on GI Bill benefits to pay for the cost of education and to help with living expenses. But now that CalVet has withdrawn its approval from all Corinthian Colleges, Bailey is left wondering what to do.

"I have to worry about how I'm going to pay my bills, my car payment, my insurance -- all of my stuff without any help," said Bailey.

In June, CalVet leaders temporarily suspended GI Bill benefits, saying they needed concrete evidence the colleges were financially sound and that students were receiving the high level of education they were promised.

"We felt it was prudent for us to step in and acknowledge that we are watching to make sure out veterans are being protected," said JP Tremblay, a spokesperson for CalVet.

And now, they have cut off funding to all of the for-profit colleges. Students and faculty say the timing is unfair.

"I don't understand the idea of withdrawing the funding mid-quarter," said Dr. Michael Babich, a Heald College instructor and retired Colonel.

And it's left students like Bailey scrambling to find another college.

"So we have to go to a new school, try to get classes for the next quarter and try to figure it out," said Bailey.

Students tell us CalVet is paying for their housing for the remainder of the quarter and Heald has stepped up to pay for tuition and books. But by next quarter, students need to enroll somewhere else to receive those benefits.
We reached out to school leaders for their side of the story, but were told they were unavailable for comment.