The Minnesota Attorney General's office is conducting a state investigation into practices at Minnesota's for-profit colleges, with a focus on how they target veterans and active duty military personnel who have access to GI Bill benefits.
The Star Tribune reports that from mid-2009 to January of this year, 53 percent of the $300 million in GI Bill benefits sent to the state went to for-profit schools. The two largest recipients of veteran's benefits are Capella University and Walden University, both for-profit institutions.
The paper said that Attorney General Lori Swanson is investigating an unnamed number of for-profit colleges. She alleges that these colleges use ad campaigns with deceptive claims about graduation and placement rates.
Steve Gunderson, president and chief executive officer of the Association of Private Sector Colleges and Universities, which represents many for-profit schools, said accusations of recruiting excesses and misleading marketing have been exaggerated.