A 2010 GAO studied showed that federal aid to students at for-profit colleges had tripled over a five-year period from $8 billion to $24 billion and now accounts for 23% of the total aid given out, even though enrollment at for-profit schools only accounts for 8% of college students. Meanwhile, studies continue to show that an inordinately small number of students at these schools ever graduates. In an effort to cut back on the number of people left with mammoth amounts of student loan debt they can’t pay back, the U.S. Dept. of Education has issued a new edict: Show us your college actually prepares students for gainful employment or risk losing out on that lovely loan money. [More]
Everyone (including us) snickered when an unemployed woman sued the college she had graduated from only months before, but the news story did help bring to light the overly optimistic or outright misleading claims made by some for-profit educational institutions. Now, thirteen former students of Everest College‘s Dallas campus have sued the school, claiming that they were misled about the transferability of the school’s credits and their prospects for employment.