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]

(boldsheep)

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]

(steakpinball)

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]

(thoth1618)

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]

Report: States Need To Do More To Keep For-Profit Colleges Honest

Report: States Need To Do More To Keep For-Profit Colleges Honest

According to a report, for-profit colleges are making things tough for students by charging exorbitant fees, engaging in high-pressure recruiting efforts and supplying degrees that don’t do as much for students as promised. The report contends more oversight from state governments could better protect students from the institutions. [More]

Kaplan University Demands $3,310.56 After Graduation, Can't
Explain What For

Kaplan University Demands $3,310.56 After Graduation, Can't Explain What For

Melinda has an MBA from Kaplan University, and has enough business sense to know that she shouldn’t have to pay debts that aren’t hers in the first place. The for-profit college, part of the Washington Post Company, has decided that she owes them more than $3,000 even though her tuition was long ago paid with federal financial aid. No one can show her a detailed breakdown of the bill, or explain why no one noticed that she owed the money until months after graduation. Update: Kaplan has since resolved Melinda’s problem. [More]

Department Of Justice, Four States File Fraud Suit Against
For-Profit College Company

Department Of Justice, Four States File Fraud Suit Against For-Profit College Company

The for-profit college industry has earned a reputation for shady methods of operation, such as peddling flimsy academic credentials for high prices and minimal effort in the classroom, and now the government is taking one of the largest corporations in the industry to court. [More]

If For-Profit Colleges Want Federal Student Aid, They Have To Prove Graduates Can Get Jobs

If For-Profit Colleges Want Federal Student Aid, They Have To Prove Graduates Can Get Jobs

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]

Only 9% Of Students At For-Profit Colleges Graduate Within 6 Years

Only 9% Of Students At For-Profit Colleges Graduate Within 6 Years

If you’re planning on getting ahead in life with a degree from a for-profit college, consider this: a new report says that only 9% of students there graduate within 6 years. Ah, so that’s the reason why you don’t see too many University of Phoenix degrees hanging on the walls of high-powered execs. [More]

More Everest College Grads Sue Over Non-Transferable Credits

More Everest College Grads Sue Over Non-Transferable Credits

Last year, we brought you the story of 13 graduates of Everest College’s Dallas campus who filed a lawsuit claiming they had been misled by the for-profit school into believing they would be able to find jobs and transfer their credits upon graduation. Now, a handful of Everest alums in Utah have filed a similar lawsuit, alleging fraud by the school. [More]