Federal regulations that aim to protect and refund student loan borrowers defrauded by their schools could end before they even go into place, thanks to a lawsuit filed by the for-profit college industry. [More]
colleges
Court: NCAA Athletes Are Not Employees, Not Entitled To Minimum Wage
By 12.7.16
Even though collegiate athletes brings in untold fortunes for schools, TV networks, merchandise makers, ticket vendors, and the hospitality and travel industries, they are not — according to a federal appeals court — employees of their schools and are therefore not entitled to be paid anything. [More]
For-Profit College Industry Eyes Resurgence Under Trump Administration
By 12.2.16
At its height, the for-profit college industry represented about 25% of all federal student aid, even though these schools only accounted for about 8% of U.S. college students. Meanwhile, these schools were spending the large majority of their money on advertising instead of education, and their students were defaulting on loans at double the rate of other borrowers. Since then, several education chains have shuttered due in no small part to federal investigations and regulations, but investors are seeing sunnier days ahead under a business-friendly Trump White House. [More]
Student Loan Default Rates Decline, But A Record Number Of Borrowers Are In Default
By 9.29.16
While the number of borrowers defaulting on their federal student loans didn’t increase this year, the number of consumers who remain in default hasn’t really change either, creating a stand-still of sorts. [More]
University Of Phoenix May Be Up For Sale
By 1.11.16
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]
Colleges Warned About Making Secret Deals With Credit Card Companies
By 12.16.15
In spite of rules intended to crack down on the once-rampant mis-marketing of credit cards to college students, some schools have not been fully transparent about lucrative agreements they’ve made with card companies, and could face federal penalties. [More]
Corinthian College’s Misleading Job-Placement Info Could Result In Faster Debt Relief For Students
By 11.17.15
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]
Lawmakers Open Inquiry Into College Accreditation Agencies
By 11.6.15
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
By 11.2.15
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]
New Campus Banking Rules Hope To Protect Students From High Prepaid & Debit Card Fees
By 10.27.15
Back in May, the Department of Education proposed rules to govern college prepaid and debit cards in order to afford students proper protections from excess fees and other harmful practices. Fast forward five months, and those rules have are now finalized. [More]
University Of Phoenix Parent Company Tries To Explain Sinking Stock Price
By 10.23.15
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]
Discover Card Program Rewards Students Who Get Good Grades. Is That Legal?
By 8.19.15
Not so long ago, many college campuses regularly played host to credit card company shills, giving away T-shirts and pizzas to students in exchange for filling out account applications. Then the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 put an end to most of these practices, leading card issuers to devise new ways to market directly to the under-21 crowd. [More]
Dept. Of Education Proposes Rules To Govern College Prepaid Credit & Debit Cards
By 5.15.15
College students’ federal aid has increasingly been put at risk by the cozy relationship between institutions of higher education and credit card issuers over the years. While consumer advocates and legislators have debated whether or not products like student IDs that double as credit or debit cards provide an actual benefit to students or if they’re just a way for schools and banks to rake in the big bucks, the Department of Education finally took steps today to ensure students are afforded proper protections from excess fees and other harmful practices with the proposal of regulations targeting the college debit and prepaid card marketplace. [More]
Dept. Of Education Reveals Names Of 550 Colleges — Mostly For-Profits — Under Federal Scrutiny
By 4.7.15
For months now, Congress has debated the merits of creating an oversight committee tasked with improving coordination in federal and state oversight of the for-profit college industry. If that group ever comes to fruition, it appears they would likely have their work cut out for them, as the Department of Education recently released its previously secret list of colleges under scrutiny for financial reasons, half of which are for-profit schools. [More]
Student IDs That Double As Debit Cards Carry Significant Overdraft Fees
By 3.30.15
The cozy relationship between institutions of higher education and credit card issuers has come under increased scrutiny in recent years as consumer advocates and legislators have debated whether or not products like student IDs that double as credit or debit cards provide an actual benefit to students or if they’re just a way for schools and banks to rake in the big bucks. According to a new report from the Center for Responsible Lending, the excessive overdraft fees surrounding the use of the cards suggest the latter point. [More]
Colleges May Be Violating CARD Act By Not Providing Copies Of Credit Card Agreements
By 2.19.15
Although the number of agreements between credit card issuers and higher education institutions are on the decline, many of the schools that do have such agreements may be in violation of the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act by not making those contracts publicly and readily available to consumers, according to a new investigation by a consumer group finds. [More]
CFPB: College Credit Card Agreements On Decline; Debit, Prepaid Card Agreements Increase
By 12.15.14
Since Congress passed the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act in 2009, the cozy relationship between credit card issuers and institutions has fractured. But while the number of agreements between the two entities has declined drastically, that doesn’t mean banking on campus has gotten any safer for students. [More]
Georgia Tech To Accept Bitcoin At Shops & Stadium
By 10.1.14
The virtual Bitcoin currency moves even further into the mainstream as Georgia Tech has reportedly become the first major university to make a deal that will allow the use of Bitcoin for student purchases at dining halls and sporting venues. [More]
