A week ago, beleaguered for-profit college biggie Corinthian — which operates the Everest University, WyoTech, and Heald College chains — confirmed that it would be meeting with the Dept. of Education to discuss its plan to sell off some of its campuses in an attempt to free up student loan money and allow classes to continue while the school is investigated by state and federal regulators for allegations of misleading marketing and questionable loan application processes. The two parties met on Tuesday, but no deal was reached. [More]
for-profit colleges
Are You A Student At Everest University, WyoTech, Or Heald College? We’d Like To Hear From You
July 1, 2014
Corinthian Colleges, Inc., one of the nation’s largest for-profit education companies — running popular chains of schools like Everest Univeristy, WyoTech, and Heald College — is also in the process of becoming that industry’s biggest collapse, as it works with the Dept. of Education to sort out a plan for selling off a number of its campuses and winding down others. While much has been made about the company’s billions in student loan funding, we haven’t heard much from the students. [More]
Senators Hope To Block New Student Enrollment At For-Profit Corinthian Colleges
By 6.27.14
Days after the U.S. Dept. of Education brokered a deal with Corinthian Colleges — the operator of for-profit school chains like WyoTech, Heald Colleges, and Everest — that would allow these programs to remain open while it faces numerous state and federal investigations, a dozen Senators have asked the Education Secretary to block continued enrollment at Corinthian-owned schools. [More]
Report: States Have The Power To Rein In For-Profit Colleges, They Just Don’t Use It
By 6.18.14
The for-profit college industry has been widely criticized for spending a disproportionate amount of its money — much of it coming from federal student loans — on marketing while having a dropout and loan default rate that is much higher than non-profit schools. Is it possible to have for-profit schools that aren’t just student loan mills? [More]
For-Profit Schools Are More Flexible & Convenient Than Community Colleges, But Can Land You In Debt Hell
By 6.7.14
Whether it’s for financial, academic or personal reasons, a traditional four-year college isn’t in the cards for everyone. Community colleges have long offered the opportunity for people to get started (or restart) their education without having to go into debt, so why have so many Americans recently opted for more expensive for-profit colleges that are regularly criticized for spending more on acquiring students than they do on teaching them? [More]
Your College Education Might Be A Better Investment For Goldman Sachs Than It Is For You
By 4.24.14
Americans have always viewed a college education as an investment in a student’s future, but there’s another sort of investment going on behind-the-scenes, and it’s nearly risk free. With access to a revolving door of prospective students and a continuous supply of federal aid, some colleges are turning hopes and dreams into big returns for Goldman Sachs and other investors. [More]
Proposed Rules Take Second Stab At Holding For-Profit Colleges Accountable For Graduate’s Success
By 3.14.14
The Department of Education is making a second attempt to rein in those for-profit colleges that benefit from financial aid to students without providing them the education needed to find gainful employment after graduation. But some consumer advocates say the proposed regulations don’t do enough to help students. [More]
CFPB Sues ITT Tech For Allegedly Exploiting Students, Pushing Predatory Loans
By 2.26.14
The Consumer Financial Protection Bureau filed a federal lawsuit against a well-known for-profit college chain, alleging the company exploited its students and pushed them into high-cost private student loans that were likely to end in default. [More]
Federal Lawsuit Claims For-Profit College Group Misled Students, Falsified Documents
By 2.20.14
We’ve heard horror stories about some for-profit colleges from students: the false promise of gainful employment after completing a short program at the cost of thousands of dollars. Now come claims from former employees about alleged fraud carried out by officials at a for-profit college group thanks to a federal lawsuit. [More]
Now The Feds Are Investigating Operators Of Everest, WyoTech & Heald Colleges
By 2.6.14
Last fall, the state of California sued Corinthian Colleges, Inc. — better known as the company that operates a number of the for-profit colleges whose ads dominate daytime TV commercial breaks — over allegations that it lied to students about job-placement stats and to investors about its graduates’ success rate. Yesterday, CCI revealed that it’s also being investigated by two federal agencies and can’t open any new locations for the time-being. [More]
51 Groups Call On President To Not Let For-Profit Colleges Weaken “Gainful Employment” Rule
By 2.4.14
Last summer, the Dept. of Education began the process of reviewing a new rule aimed at those educational institutions that failed to demonstrate their students could find gainful employment in the fields in which they had been trained. The for-profit college industry has managed to weaken the rule, but today more than 51 different groups — including advocates for consumers, veterans, and students — asked the President to help prevent this rule from becoming toothless. [More]
New System Addresses Military Members’ Complaints Of Higher Education Abuse
By 1.30.14
It’s hard to believe some higher education institutions deceptively target veterans and servicemembers, but it does happen. To better ensure veterans’ and servicemembers’ input is being heard the federal government has launched a new reporting system to streamline consumer complaint investigations. [More]
Court Orders For-Profit College To Pay $1,000/Day For Sidestepping Subpoena
By 12.4.13
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]
California Sues For-Profit College Operator For Lying To Students & Investors
By 10.11.13 — Updated: 6.23.14
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]
New Rules Could Hold Career Education Programs Accountable For Graduates’ Success
By 9.6.13
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]
Jury Awards Former Student $13 Million In Lawsuit Against For-Profit College
By 6.21.13
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]
13 Attorneys General Voice Support For Federal Bill To Curb Advertising By For-Profit Schools
By 3.15.13
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]
Kentucky Sues For-Profit College Over Misleading Job-Placement Stats
By 1.16.13
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]
