The Department of Education will no longer work with the federal Consumer Financial Protection Bureau to root out bad players in the student loan servicing arena. That’s according to Education Secretary Betsy DeVos, who recently notified the CFPB that her department is ending years of formal cooperation combating student loan fraud. [More]
cost of an education
Education Secretary DeVos To Give All Student Loan Accounts To One Company; Strip Away More Protections
By 5.22.17 — Updated: 5.25.17
Education Secretary Betsy DeVos has made another sweeping change to the student loan system that consumer advocates claim favors student loan collectors over the American people repaying those loans. [More]
Two For-Profit Schools Must Pay Students $2.3M Over Unfair Practices
By 7.31.15
Hundreds of former students at Kaplan Career Institute and Lincoln Technical Institute in Massachusetts will receive redress from the for-profit colleges after the schools settled charges they engaged in unfair practices with the state’s Attorney General’s office. [More]
For-Profit Educator Ashworth College Settles FTC Charges It Misrepresented Career Opportunities, Transfer Credits
By 5.26.15
Federal regulators’ crackdown on the for-profit education industry continued today as Georgia-based Ashworth College agreed to settle Federal Trade Commission charges the company misled students about career training and credit transfers. [More]
SEC Charges Current, Former Executives Of For-Profit Chain ITT Educational Services With Fraud
By 5.12.15
Back in September ITT Educational Services – the operator of for-profit college chain ITT Technical Institute – revealed it was facing increased scrutiny by several government agencies. That scrutiny turned to action this week as the Securities and Exchange Commission filed fraud charges against current and former executives with the company for their part in concealing problems with company-run student loan programs. [More]
Petition Calls For Loan Relief For Corinthian College Students
By 4.27.15
Ever since for-profit education chain Corinthian Colleges began its downward spiral last summer, consumer groups, students and legislators have urged the Department of Education to provide current and former students relief from student loans they took out to finance an education based on deceptive recruitment practices. Now that CCI has closed its remaining Everest University, Heald College and WyoTech campuses, consumer advocates say discharging federal student loans held by these students – and protecting students of other for-profit institutions – should be of immediate concern for the Department. [More]
