Government scrutiny of the for-profit education industry could intensify default risks on up to $1.88 billion of commercial mortgage bonds backed by properties occupied by Corinthian Colleges, the University of Phoenix, and DeVry, Morningstar Credit Ratings warned Thursday.

The industry is reeling from a series of investigations and settlements that resulted in Corinthian shutting down its entire operation last month under an agreement with the Department of Education. The company allegedly deceived students with false data about graduation rates and job placement rates.

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