(bluwmongoose)

Executives For The World’s Largest Diploma Mill Arrested

Less than two weeks after an investigative report detailed how a Pakistan-based IT company allegedly raked in millions of dollars a month by selling bogus diplomas, degrees and certifications through a series of fake websites and forceful sales calls, authorities in the country say they’ve arrested the chief executive of Axact. [More]

Ashworth College agreed to settle charges it misled students.

For-Profit Educator Ashworth College Settles FTC Charges It Misrepresented Career Opportunities, Transfer Credits

Federal regulators’ crackdown on the for-profit education industry continued today as Georgia-based Ashworth College agreed to settle Federal Trade Commission charges the company misled students about career training and credit transfers. [More]

(bluwmongoose)

Senator Calls For Investigation Into Three For-Profit College Chains, Restrictions On Future Campus Sales

The struggle to protect students from potentially harmful for-profit college chains continued today as Illinois Senator Dick Durbin urged the Department of Education to investigate the business practices of three of the country’s largest propriety education companies – ITT Educational Services, Career Education Corporation, and Education Management Corporation. [More]

(rayovolks)

10 Things We Learned About The World’s Largest Diploma Mill

Earning a diploma can take years, but some people simply don’t have the time. For that reason, companies have been cropping up year after year offering consumers the chance to obtain a diploma, degree or certification in exchange for hundreds – and sometimes thousands – of dollars. A new report from the New York Times details how one company allegedly rakes in millions of dollars a month by selling those bogus documents though a series of fake websites and forceful sales calls. [More]

(Newton Free Library)

CFPB Wants To Hear Your Comments On Student Loan Servicing Practices

Outstanding student loan debt now totals more than $1.2 trillion in the U.S., and it’s only going to grow as college tuitions continue to outpace inflation. Meanwhile, student loan servicers aren’t exactly making it easy for borrowers to pay down that debt with confusing and inconsistent policies and an apparent reluctance to work with troubled borrowers. In an effort to see if the repayment process can be made less byzantine, the Consumer Financial Protection Bureau is asking for you to share your thoughts on the state of student loan servicing. [More]

(yoshiffles)

What Did Your Mom Teach You About Money?

When I was in first grade, the lunch lady at my school informed me that my parents had overpaid for my meals for the month, and sent the extra money home with me, as I remember it. I took it to my mom, who said that everyone should have a bank account, and that we could use that $18 or so to start one for me. And to add to that — she said that moolah could grow to a larger amount all by itself through a magical thing called “interest.” [More]

Billions In College Aid Will Go Unclaimed Again Because Students Won’t Fill Out A Stupid Form

(Xavier J. Peg)

Don’t say we didn’t warn you. Way back in December, we advised high school seniors who planned on attending college to not be stupid and go fill out a Free Application for Federal Student Aid [FAFSA] form right away. Every year, billions of dollars in grant and loan money goes unclaimed because students and their parents never get around to filling out this paperwork, and it looks like the upcoming school year will be no different. [More]

(Ralph Krawczyk Jr)

Fiat Chrysler Offers Employees Chance For Free College Education At A For-Profit University

Providing the opportunity for employees to obtain a college degree is a worthy intention. Just as Starbucks announced in 2014 that it would finance the college dreams of workers around the country, Fiat Chrysler has unveiled a similar program today. There’s only one slight difference: the university that Chrysler has partnered with is a for-profit college. [More]

(thisisbossi)

Petition Calls For Loan Relief For Corinthian College Students

Ever since for-profit education chain Corinthian Colleges began its downward spiral last summer, consumer groups, students and legislators have urged the Department of Education to provide current and former students relief from student loans they took out to finance an education based on deceptive recruitment practices. Now that CCI has closed its remaining Everest University, Heald College and WyoTech campuses, consumer advocates say discharging federal student loans held by these students – and protecting students of other for-profit institutions – should be of immediate concern for the Department. [More]

Corinthian Colleges Completes Collapse, Closes Remaining Campuses Effective Immediately

Corinthian Colleges Completes Collapse, Closes Remaining Campuses Effective Immediately

Although it was nearly a year in the making, the largest collapse in U.S. higher education finally occurred Sunday, as embattled for-profit education chain Corinthian Colleges Inc. – the operator of Everest University, Heald College and WyoTech – announced it would close the remainder of its campuses effective Monday. [More]

DeVry is shuttering 14 campuses in 11 states, and moving those students online.

DeVry Closing 14 Campuses, Moving Students Online

Amid lawsuits, scandals, shutdowns — not to mention the many former students who say they racked up huge student loan bills without getting an adequate education — enrollment at for-profit colleges in the U.S. continues to shrink. And students at 14 DeVry campuses in 11 cities will soon have to take their education online with the educator moving those schools online in an effort to save money. [More]

(Michael Sauers)

Starbucks Expands Tuition Reimbursement Program To Cover Four Years Of Online Schooling

After more than 2,000 Starbucks workers headed to college through the company’s tuition reimbursement program with Arizona State University, the mega-coffee company announced it wouldn’t leave those student high-and-dry after just two years. Now, the company plans to expand the offering to cover a full four years of tuition at the college for eligible employees. [More]

Xavier J. Peg ☠

For-Profit College Enrollment Is Down Following Scandals & School Failures

With increasing scrutiny from lawmakers, regulators, consumer advocates and the general public, the past five years have been hard on a for-profit college industry that had enjoyed years of happily feeding at the federal student aid trough. There have been changes to schools’ often excessive advertising budgets, damning reports of abuse, and soon-to-be-implemented rules requiring for-profit programs to demonstrate their effectiveness. The fractures in a business model that has attracted some of the biggest names in investment have become more evident, especially when comparing previously robust enrollment numbers with the most recent figures. [More]

(tomQ)

Report: Taking For-Profit Colleges Nonprofit Can Generate Hefty Profits For Owners

Earlier this year Education Credit Management Corporation bought 56 campuses from embattled for-profit chain Corinthian Colleges Inc. and took the schools to the nonprofit sector. While that conversion was initiated because of the ongoing collapse and financial problems facing CCI, other college chains have dropped the for-profit status seemingly to pick up hefty profits. [More]

(Xavier J. Peg ☠)

Federal Student Loan Forgiveness Plans Cost Govt. Nearly $22B More Than Expected

Last spring, legislators and researchers began voicing concerns that federal student loan forgiveness plans could become a victim of their own success. This week, we learned just how successful – and costly – such program are; information that once again created a chorus of concerns regarding the sustainability of such programs. [More]

(Great Beyond)

College Students Leaving $3B In Grant Money Unclaimed By Not Filing FAFSA

College students and financial supporters of college students: Remember when we told you at the end of the year that you needed to get your Free Application for Federal Student Aid in ASAP? Maybe you pinned it on the cork board in the kitchen or made a mental note that disappeared as soon as you had to remember the finer points of the infield fly rule. It’s because people didn’t get around to filing their FAFSA that there are billions of dollars in unclaimed grant money just sitting around gathering dust like that post-it note on which you wrote “File FAFSA. Buy bread.” [More]

(Morgan)

Proposed Scorecard Could Help Protect Students From Dangerous Banking Products

For the past several years, federal agencies, lawmakers and consumer advocates have shared their displeasure with the rather cozy relationship between the financial industry and higher education institutions and set out to protect consumers from the often shady deals made between the two groups. Now the Consumer Financial Protection Bureau is setting out to protect students by creating a scorecard that would help ensure colleges have all the pertinent details when it comes to partnering with financial institutions that offer checking and prepaid accounts to students. [More]

(Coyoty)

White House Proposes Free Community College For Dedicated Students

The cost of a college education has outpaced inflation for the last few decades, making school less affordable for millions of Americans and driving student loan debt past the $1 trillion mark. And in the last decade, the for-profit education industry has taken in many billions of dollars in federal student aid for schools with high dropout rates. Today, President Obama offered a suggestion: Free community college educations for those willing to stick to it. [More]