for-profit education

Joachim Rayos

With DeVos Unwilling To Defend Rules, States Try To Protect Students Defrauded By For-Profit Colleges

Education Secretary Betsy DeVos has made it clear that she has no intention to defend regulations put in place to protect students at failed for-profit colleges. But a number of states are now attempting to step in to do the job the Department of Education won’t. [More]

Education Secretary Betsy DeVos “Resets” Rules On For-Profit Colleges

Education Secretary Betsy DeVos “Resets” Rules On For-Profit Colleges

Education Secretary Betsy DeVos has announced plans to “reset” two regulations that were recently put in place to hold for-profit colleges more accountable and prevent students at these schools from being left with nothing but debt if their college collapses. [More]

Michael

For-Profit Colleges Sue To Stop Rule That Protects Students Of Failed Schools

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]

Freaktography

18 Attorneys General Ask Education Secretary DeVos To Not Go Soft On For-Profit Colleges

A number of high-profile for-profit educators shut down or scaled back operations in recent years, among accusations of overcharging and under-educating students, and new rules intended to hold schools accountable. However, these companies’ fortunes began to turn after the election of Donald Trump and his naming of pro-industry Education Secretary Betsy DeVos. That’s why a group of 18 state attorneys general is calling on the administration to not ease up on these controversial schools. [More]

DeVry University Must Pay $100 Million To Former Students For Misleading Ads

DeVry University Must Pay $100 Million To Former Students For Misleading Ads

At the beginning of the year, the Federal Trade Commission sued popular for-profit college DeVry University, claiming the school’s advertising misled would-be students about how likely a DeVry degree is to get them a job. And now to ring out the year, the school and the Commission have reached a $100 million settlement that sends all that money right back into students’ pockets. [More]

For-Profit College Industry Eyes Resurgence Under Trump Administration

For-Profit College Industry Eyes Resurgence Under Trump Administration

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]

Gettin' schooled.

Trump University Fraud Lawsuits Settled For $25 Million

Ten days before President-elect Donald Trump was set to go to trial on one of three fraud lawsuits involving his defunct Trump University, the parties involved in all of these cases have reached a settlement worth $25 million.  [More]

Michael

New Rules Aim To Make It Easier For Students To Seek Financial, Legal Relief From Failed Colleges

In the last few years, multiple for-profit college chains have closed with little or no warning given to their students, while others remain on the brink of closure. And many of the for-profit schools that remain bar wronged students from ever suing the college in a court of law. Today, the Department of Education finalized the massive overhaul of its “Borrower Defense” rules in an effort to make it easier for students to hold colleges financially and legally responsible for their actions. [More]

DeVry University Must Stop Claiming That 90% Of Grads Get Jobs

DeVry University Must Stop Claiming That 90% Of Grads Get Jobs

Many for-profit college chains recruited students through ads touting exceedingly high job-placement rates, but as we’ve seen from the recent collapses of chains like Corinthian Colleges Inc. and ITT Tech, those placement statistics can be artificially inflated. This week, for-profit educator DeVry Education Group agreed to be more honest and transparent about the job-placement claims in its ads and recruitment materials. [More]

DeVry Education Group Will Limit How Much Federal Aid Its Schools Accept

DeVry Education Group Will Limit How Much Federal Aid Its Schools Accept

The so-called 90/10 rule says that for-profit colleges can’t derive more than 90% of their revenue from federal financial aid. In the wake of the collapse of ITT Tech, which had to shutter after the government clamped down on its access to federal funds, the DeVry chain of for-profit schools says it will cap the amount of federal aid it receives at levels below what the rules require. [More]

New Owner Of 56 Former Corinthian Colleges Schools Kept Administrators, Teachers

New Owner Of 56 Former Corinthian Colleges Schools Kept Administrators, Teachers

As part of its agreement to purchase more than 56 campuses from failed for-profit education giant Corinthian Colleges, Education Credit Management Corporation agreed to transition the Everest University and WyoTech schools to non-profit status, and generally avoid any of the shady business practices — inflated job placement rates, pushing students into high cost loans — that the former owner was accused of engaging in. Yet, a new report airing on PBS’ Frontline tonight suggests that while the company has worked to turn the schools around, some things — namely personnel — have not changed.  [More]

For-Profit College Operator Bridgepoint Agrees To Forgive $23.5M In Student Loans

For-Profit College Operator Bridgepoint Agrees To Forgive $23.5M In Student Loans

Two months after Bridgepoint Education, the operator of for-profit colleges Ashford University and the University of the Rockies, revealed it was being investigated by the Department of Justice over its federal student aid funding, another federal agency has ordered the company to forgive $23 million in student loans and pay an $8 million penalty over allegedly illegal student lending practices.  [More]

Mom Says College Stole Her ID, Forged Signature To Take Out Student Loan For Son Who Didn’t Attend School

Mom Says College Stole Her ID, Forged Signature To Take Out Student Loan For Son Who Didn’t Attend School

A for-profit educator that was recently hit with a $13 million settlement for allegedly filing false claims for student aid is now accused of stealing an Alabama woman’s identity and forging her signature to take out a student loan for her son, even though he never attended that school. [More]

Former ITT Employees Sue Over Sudden Closures

Former ITT Employees Sue Over Sudden Closures

While it was no doubt a shock for 40,000 ITT Technical Institute students to learn they no longer had a place to pursue their education, 8,000 employees of the company also lost their jobs. Now some of those laid-off workers have sued for-profit operator ITT Educational Services for failing to give them adequate notice their jobs would be eliminated.  [More]

California Bars ITT Tech From Enrolling New Students

California Bars ITT Tech From Enrolling New Students

A day after federal regulators barred ITT Education Services from enrolling new students using financial aid at its ITT Technical campuses, a California regulator prohibited the education operator from enrolling all new students at its 15 schools in the state.  [More]

Feds: For-Profit College Chain Can’t Switch To Non-Profit To Avoid Accountability

Feds: For-Profit College Chain Can’t Switch To Non-Profit To Avoid Accountability

The Department of Education has denied non-profit status to a chain of for-profit career colleges, accusing the schools’ operators of trying to avoid accountability.
[More]

For-Profit Educator Bridegepoint Education Under Investigation Over Federal Funding

For-Profit Educator Bridegepoint Education Under Investigation Over Federal Funding

Bridgepoint Education, the operator of for-profit colleges Ashford University and the University of the Rockies, added its name to the long list of higher education companies to find themselves on the receiving end of a federal investigation, as the Department of Justice has opened a probe into the organization’s federal student aid funding.  [More]

Michael

Proposed Rule Stops Colleges From Stripping Students Of Their Right To Sue

A recent study found that almost all of the nation’s largest for-profit college chains have enrollment agreements that block students from suing the school and prevent them from joining in class actions against these colleges. Following the 2015 bankruptcy and collapse of mega-chain Corinthian Colleges Inc., the sagging numbers at University of Phoenix, last week’s death knell for Brown Mackie College, and pending investigations and lawsuits against ITT and others, the Department of Education has decided that maybe these schools — which reap billions in federal aid each year — should probably have to be held accountable in a court of law when they screw students over. [More]