Proposed Rules Take Second Stab At Holding For-Profit Colleges Accountable For Graduate’s Success

Proposed Rules Take Second Stab At Holding For-Profit Colleges Accountable For Graduate’s Success

The Department of Education is making a second attempt to rein in those for-profit colleges that benefit from financial aid to students without providing them the education needed to find gainful employment after graduation. But some consumer advocates say the proposed regulations don’t do enough to help students. [More]

CFPB Sues ITT Tech For Allegedly Exploiting Students, Pushing Predatory Loans

CFPB Sues ITT Tech For Allegedly Exploiting Students, Pushing Predatory Loans

The Consumer Financial Protection Bureau filed a federal lawsuit against a well-known for-profit college chain, alleging the company exploited its students and pushed them into high-cost private student loans that were likely to end in default. [More]

Federal Lawsuit Claims For-Profit College Group Misled Students, Falsified Documents

Federal Lawsuit Claims For-Profit College Group Misled Students, Falsified Documents

We’ve heard horror stories about some for-profit colleges from students: the false promise of gainful employment after completing a short program at the cost of thousands of dollars. Now come claims from former employees about alleged fraud carried out by officials at a for-profit college group thanks to a federal lawsuit. [More]

Now The Feds Are Investigating Operators Of Everest, WyoTech & Heald Colleges

Now The Feds Are Investigating Operators Of Everest, WyoTech & Heald Colleges

Last fall, the state of California sued Corinthian Colleges, Inc. — better known as the company that operates a number of the for-profit colleges whose ads dominate daytime TV commercial breaks — over allegations that it lied to students about job-placement stats and to investors about its graduates’ success rate. Yesterday, CCI revealed that it’s also being investigated by two federal agencies and can’t open any new locations for the time-being. [More]

51 Groups Call On President To Not Let For-Profit Colleges Weaken “Gainful Employment” Rule

51 Groups Call On President To Not Let For-Profit Colleges Weaken “Gainful Employment” Rule

Last summer, the Dept. of Education began the process of reviewing a new rule aimed at those educational institutions that failed to demonstrate their students could find gainful employment in the fields in which they had been trained. The for-profit college industry has managed to weaken the rule, but today more than 51 different groups — including advocates for consumers, veterans, and students — asked the President to help prevent this rule from becoming toothless. [More]

New System Addresses Military Members’ Complaints Of Higher Education Abuse

New System Addresses Military Members’ Complaints Of Higher Education Abuse

It’s hard to believe some higher education institutions deceptively target veterans and servicemembers, but it does happen. To better ensure veterans’ and servicemembers’ input is being heard the federal government has launched a new reporting system to streamline consumer complaint investigations. [More]

Court Orders For-Profit College To Pay $1,000/Day For Sidestepping Subpoena

Court Orders For-Profit College To Pay $1,000/Day For Sidestepping Subpoena

For three years, the Kentucky Attorney General’s office has been trying to enforce a subpoena related to its investigation into the operators of the for-profit National College schools in the state. Today, a court ordered a $1,000/day civil penalty against the school, retroactive to July 31. [More]

Heald College, along with Everest College and WyoTech, are all operated by CCI.

California Sues For-Profit College Operator For Lying To Students & Investors

California Attorney General Kamala Harris filed suit yesterday against a company that operates three for-profit colleges, alleging that it lied both to students about the prospects of job-placement, but also to investors about the success rate of its graduates. The complaint also accuses the colleges of illegally using military seals in its ads to lure in members of the armed services. [More]

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New Rules Could Hold Career Education Programs Accountable For Graduates’ Success

While college tuitions and student loan debt has skyrocketed, a number of institutions — especially for-profit schools — have been criticized for failing to provide sufficient education and guidance to students who are then stuck without jobs and without the ability to pay back student loans. Starting Monday morning, the Dept. of Education will begin hearing feedback on a recently drafted regulation that would hold schools accountable for the performance of their students in the real world. [More]

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Jury Awards Former Student $13 Million In Lawsuit Against For-Profit College

One of the more common complaints against for-profit colleges is that the institutions make promises to prospective students about job placement and salary that the schools don’t make good on. A woman in Missouri recently sued one such for-profit school, saying it misled her about its medical assistant program. She had been seeking somewhere between $2-4 million in damages, but the jury went ahead and awarded her $13 million. [More]

Greendale, raccoon-free by 2014!

13 Attorneys General Voice Support For Federal Bill To Curb Advertising By For-Profit Schools

Earlier this week, Senators Kay Hagan (North Carolina) and Tom Harkin (Iowa) decided to take another go at introducing legislation that would seek to limit the amount of federal money for-profit schools could spend on advertising. At the same time, the Attorneys General from 13 states penned a letter to the chairs and ranking members of key Senate and House voicing their support for the bill. [More]

Spencerian College, with two campuses in Kentucky, has been sued by the state's Attorney General's office.

Kentucky Sues For-Profit College Over Misleading Job-Placement Stats

If you’re comparing college programs and see job-placement rates of anywhere from 80% to 100%, that might sound pretty appealing. But what if the real numbers are not so rosy? [More]

112 U. of Phoenix locations will remain

University Of Phoenix Not Exactly Rising From Ashes, To Close 115 Locations

With enrollment and revenue declining, the University of Phoenix announced yesterday that it will close about half of its physical locations around the country in an effort to save $300 million.

The closed locations includes 90 learning centers and 25 campuses, accounting for a total of 13,000 students. This will leave 112 Phoenix locations in 36 states. [More]

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More Than 1-In-5 Students At For-Profit Colleges Default On Student Loans Within Three Years

For the first time, the Dept. of Education has provided stats for people three years into their student loan repayments, and the numbers don’t paint a pretty picture. The percentage of college students defaulting on their loans is on the rise, with 9.1% of recent students defaulting within two years of their first payment coming due, and a whopping 13.5% defaulting within three years. And at controversial for-profit colleges, that number is alarmingly higher. [More]

Shouldn't We Be Able To Negotiate On College Tuition?

Shouldn't We Be Able To Negotiate On College Tuition?

If someone offers to sell you a life-changing product ranging in price anywhere from $10,000 to $250,000 — maybe more — chances are that most of you will at least attempt to negotiate that price down; only suckers pay sticker price. And yet, when it comes to a college education, it’s unheard of to call up competing institutes of higher learning to see if you can knock a few bucks off the MSRP. [More]

Why Do Student Loan Borrowers Default?

Why Do Student Loan Borrowers Default?

On Monday, we shared the results of a two-year Senate investigation into how much federal money is going to for-profit colleges, and what kind of return students and society as a whole are getting on that investment. (Answers: $32 billion, and a pretty terrible return on that investment.) A study that the National Consumer Law Center released yesterday shows the college bubble from a different perspective: that of student loan borrowers who have gone into default. It’s not pleasant. [More]

Report: $32 Billion In Federal Aid Going To Students At Underperforming For-Profit Colleges

Report: $32 Billion In Federal Aid Going To Students At Underperforming For-Profit Colleges

Earlier today, the Senate Committee on Health, Education, Labor, and Pensions (HELP) announced the findings of its two-year investigation into exactly where the $32 billion annual investment in federal student aid is going — and whether students are getting a return on taxpayers’ investment. [More]

Greendale, raccoon-free by 2014!

Law Would Forbid Colleges From Using Federal Money For Advertising

The nation’s 15 largest for-profit colleges get nearly 90% of their annual revenue from federal aid programs for students. New legislation introduced in the U.S. Senate today would prevent any of that money being used on advertising, marketing and recruitment. [More]