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]
Last month, Daniel wrote in to complain that the Art Institute Online, which is part of the Art Institute of Pittsburgh, had completely jacked up his final semester with them. When he wrote to us, he had no diploma, and he was being charged nearly $3,000 for undisclosed course requirements that the school had promised to comp. Fortunately, he’s written back with some good news.