Trouble continues to mount for ITT Educational Services. The for-profit college operator behind the ITT Technical Institute chain is already under investigation over concerns it may have defrauded the federal government, and now faces a lawsuit from the Massachusetts Attorney General for allegedly engaging in a slew of abusive and misleading practices. [More]
for-profit colleges
Corinthian Colleges Allegedly Recruited Homeless Students, Advertised Non-Existent Programs
By 3.18.16
Just when you think the accusations levied against now-defunct for-profit college chain Corinthian Colleges couldn’t get worse — inflating job placement rates, grade manipulation, and questionable marketing practices — they do. The California Attorney General’s office filed thousands of pages of documents and testimony as part of its ongoing lawsuit against the school highlighting an even more egregious practice: allegedly recruiting homeless students and assisting them in taking out thousands of dollars in loans they could never repay. [More]
VA Suspends DeVry University’s Participation In “Principles Of Excellence” Program
By 3.14.16
The Department of Veterans Affairs announced Monday that it would suspend DeVry University’s status as a Principles of Excellence institution after reviewing a federal lawsuit that accuses the popular for-profit college chain of deceiving prospective students about their employment potential after graduation. [More]
Whistleblower Lawsuit Claims University Of Phoenix Defrauded The Federal Government
By 3.9.16
You can now add the University of Phoenix and its parent company, Apollo Education Group, to the list of for-profit educators who find themselves on the defendant end of a whistleblower lawsuit. A former Phoenix employee is accusing the company of submitting false student aid information in order to receive federal funding it was not entitled to. [More]
Appeals Court Shuts Down For-Profit College Industry’s Effort To Avoid Accountability
By 3.8.16
The for-profit college industry lost an important legal battle today, when a federal appeals court upheld last year’s lower court ruling in favor of new regulations intended to hold these controversial schools accountable. [More]
Advocates: Schools Using Forced Arbitration Shouldn’t Receive Federal Aid
By 3.4.16
For-profit colleges that require students to sign away their legal rights, forcing them into arbitration in order to enroll in classes should not receive federal financial aid, a coalition of 47 consumer advocacy groups urged acting Secretary of Education John King on Friday. [More]
Appeals Court Reinstates Fraud Case Against Trump University
By 3.1.16
Back in Aug. 2013, the New York state attorney general’s office sued Donald Trump and Trump University, alleging that the for-profit investment school had tricked students out of $40 million by misleading them into thinking they were paying for a licensed education program with instructors handpicked by Trump. Today, a state appeals court panel breathed new life into the lawsuit, meaning the fraud case can move forward. [More]
AGs Seek Better Protections For Servicemembers Deceived By For-Profit Colleges
By 2.29.16
Federal regulators must do more to protect servicemembers from unscrupulous colleges seeking to get their hands on their education benefits. That’s the message eight states want to get across to the secretary of Veteran Affairs following reports that some for-profit colleges target military personnel using predatory practices. [More]
New Student Aid Enforcement Unit Created To Address Alleged Fraud At For-Profit Colleges
By 2.9.16
With thousands of former Corinthian Colleges students waiting to find out if their federal student loan debts will be discharged because the now-defunct for-profit college allegedly deceived them with false promises related to their future careers, the Department of Education announced the creation of a special enforcement unit with the goal of being able to respond quickly to allegations that colleges are violating the law. [More]
Struggling University Of Phoenix Parent Company To Go Private
By 2.8.16
Between its sinking stock price, sagging enrollment, and the hot spotlight of federal investigations, the nation’s largest for-profit education chain has decided to go private. [More]
DeVry University Accused Of Deceptive Advertising & Misleading Students On Job Prospects
By 1.27.16
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
By 1.21.16
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
By 1.20.16
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 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]
Looking Ahead: 5 Big Issues To Follow For 2016
By 1.1.16
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]
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]
UPDATE: For-Profit Education Company EDMC Agrees To Pay $95.5M To Settle Fraud, Recruitment Violations
By 11.16.15
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
By 11.10.15
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]
