DeVry University Accused Of Deceptive Advertising & Misleading Students On Job Prospects

DeVry University Accused Of Deceptive Advertising & Misleading Students On Job Prospects

Federal regulators continued a crackdown on allegedly unscrupulous for-profit college companies Wednesday, filing a lawsuit against DeVry University. The popular chain of schools stands accused of deceiving prospective students about their employment potential after graduation.  [More]

Whistleblower Lawsuit Accuses ITT Tech Of Defrauding Government, Using Deceptive Recruitment Practices

Whistleblower Lawsuit Accuses ITT Tech Of Defrauding Government, Using Deceptive Recruitment Practices

A recently unsealed whistleblower lawsuit against for-profit college chain ITT Technical Institute accuses the school of operating a “systematic scheme” to defraud the government by using a litany of abusive, deceptive practices to enroll students.  [More]

Dept. Of Education Working On Rules For Defense Of Repayment Law After Influx Of Claims

Dept. Of Education Working On Rules For Defense Of Repayment Law After Influx Of Claims

Under federal law, student loan borrowers may be eligible to have their debts discharged if they prove the school they attended deceived them with false promises related to their future careers. However, the measure has been used only sparingly in the past and few clear rules outline the forgiveness process. Now, after nearly two decades on the books, federal officials are finally getting around to crafting rules that could remove one roadblock for students seeking relief.   [More]

(University of Phoenix)

University Of Phoenix May Be Up For Sale

Increased government scrutiny and falling enrollment at the University of Phoenix may be too much for Apollo Education Group, the parent company of the for-profit college mega chain. The company is reportedly exploring its options on what to do with the school, including a sale. [More]

Looking Ahead: 5 Big Issues To Follow For 2016

frankieleon

Now that 2015 is done and we finally learned that Luke Skywalker is actually Faye Dunaway’s daughter (and sister!), it’s time to take off the party hats, sweep up the confetti, and do the walk of shame forward into the uncharted territory of the year to come. [More]

(bluwmongoose)

Corinthian College’s Misleading Job-Placement Info Could Result In Faster Debt Relief For Students

Thousands of students affected by the abrupt closure of for-profit college educator Corinthian Colleges’ Wyotech, Heald College and Everest University campuses could soon have more options when it comes to receiving debt relief after a joint investigation by the California Attorney General’s office and the Department of Education found additional evidence that the schools misrepresented job placement rates for several programs in order to enroll students.  [More]

(EDMC on Linkedin)

UPDATE: For-Profit Education Company EDMC Agrees To Pay $95.5M To Settle Fraud, Recruitment Violations

UPDATE: Education Management Corporation, the operator of for-profit college chains such as Brown Mackie College, Argosy University and the Art Institutes, will pay $95.5 million to settle claims it violated state and federal False Claims Act (FCA) provisions regarding its recruiting practices.  [More]

Lawmakers Continue Crusade To Rein In For-Profit Colleges Targeting Servicemembers

Lawmakers Continue Crusade To Rein In For-Profit Colleges Targeting Servicemembers

In recent months federal regulators and government agencies have increased scrutiny of for-profit colleges and their interactions with servicemembers, veterans and their families. Today, lawmakers furthered that mission by introducing legislation that would restore previous limits on how much money these educational institutions can receive from the federal government via military benefits and other programs.  [More]

(bluwmongoose)

Lawmakers Open Inquiry Into College Accreditation Agencies

One might assume that a college accreditation is an indicator the school has met high standards for education and financial security. But as the recent collapse of Corinthian Colleges demonstrated, this is not always true. In an effort to ensure that America’s students aren’t duped into racking up huge debts to pay for substandard schools, lawmakers are looking to improve the oversight of accrediting agencies.
[More]

Chairman Of University Of Phoenix Parent Company Dumps Millions Of Dollars In Stocks

Chairman Of University Of Phoenix Parent Company Dumps Millions Of Dollars In Stocks

Just a week after University of Phoenix’s parent company Apollo Education Group attempted to tone down the role the troubled for-profit college has played in the company’s falling stock prices and public image, new regulatory filings show the corporation’s own chairman may not have the same faith in the organization, as he dumped nearly $10 million in company stock.  [More]

Feds Win Default Judgment Against Corinthian Colleges Over Predatory Lending Scheme

Feds Win Default Judgment Against Corinthian Colleges Over Predatory Lending Scheme

In September 2014, just seven months before Everest University, WyoTech and Heald College closed their doors, federal regulators sued the for-profit colleges’ parent company Corinthian Colleges Inc claiming it duped thousands of students into taking out costly, predatory, and often financially devastating, private student loans to finance their post-secondary education. This week, the Consumer Financial Protection Bureau won a default judgment against the for-profit educator for engaging in a predatory lending scheme.  [More]

University Of Phoenix Parent Company Tries To Explain Sinking Stock Price

University Of Phoenix Parent Company Tries To Explain Sinking Stock Price

For the second time this year, University of Phoenix’s parent company Apollo Education Group attempted to tone down the role the troubled for-profit college has played in the company’s falling stock prices and public image during a phone call with investors.  [More]

More Trouble For ITT Education Services: Agency Restricts For-Profit’s Use Of Federal Student Aid

More Trouble For ITT Education Services: Agency Restricts For-Profit’s Use Of Federal Student Aid

Just a month after for-profit college operator ITT Education Services announced it had become the focus of a federal fraud investigation, the Department of Education revealed it had placed restrictions on ITT Technical Institute’s use of federal grants and loans.  [More]

Under-Investigation Educators Still Received $8.1B In Federal Funds Last Year

Under-Investigation Educators Still Received $8.1B In Federal Funds Last Year

The federal government has ramped up its efforts to protect consumers from unfair and deceptive for-profit colleges in recent years: implementing so-called gainful employment rules this summer, discharging millions of dollars in student loans for students who were defrauded by Corinthian Colleges and restricting the University of Phoenix’s ability to participate in tuition-assistance programs for active-duty servicemembers. Still, these steps appear to have done little to keep questionable for-profit colleges from getting their hands on billions of dollars in funding straight from the government.  [More]

University Of Phoenix Barred From Military Bases, Using New Tuition Assistance Funds

University Of Phoenix Barred From Military Bases, Using New Tuition Assistance Funds

For-profit college chains like the University of Phoenix spend a lot of time and money recruiting active-duty military personnel. But the school has come under fire in recent months for allegedly crossing some legal lines in its efforts to attract students from the armed forces. Yesterday, Phoenix’s parent company revealed that the school is currently barred from recruiting on U.S. military installations, and that Department of Defense tuition assitance funds can not be used to pay for classes for new students. [More]

Legislation Would Hold For-Profit College Leaders Accountable For Misrepresentations

Legislation Would Hold For-Profit College Leaders Accountable For Misrepresentations

Lawmakers on Tuesday continued their mission to protect consumers from unscrupulous players in the for-profit college industry by introducing legislation that would impose stiffer penalties and restrictions on the leaders of such institutions.  [More]

ITT Educational Services Target Of Federal Fraud Investigation

ITT Educational Services Target Of Federal Fraud Investigation

Things don’t appear to have gotten better for for-profit college operator ITT Educational Services since it announced in September 2014 that it was under increased scrutiny from federal regulators, as the owner of the ITT Technical Institute chain revealed on Monday that the Department of Justice is looking into whether the company defrauded the federal government. [More]

Bill Would Restore Pell Grant Eligibility For Students Who Attended Defunct For-Profit Colleges

Bill Would Restore Pell Grant Eligibility For Students Who Attended Defunct For-Profit Colleges

The Federal Pell Grant Program provides need-based grants to low-income students to help pay for college, but the funds come with limitations: They are only available for six years or 12 semesters, and when that time is up the funding is gone. So when now-bankrupt Corinthian Colleges Inc. abruptly closed its Wyotech, Heald College and Everest University campuses in April, thousands of students who relied on Pell money were left with few options for continuing their education elsewhere. A new piece of legislation aims to help these stranded students get back on track. [More]