Despite the pleas — and legal actions — of lawmakers, consumer advocates, and students, Secretary of Education Betsy DeVos quietly announced Friday that the Department of Education will further delay, by nearly two years, rules intended to prevent students at unscrupulous schools from being left with nothing but debt if their college collapses. [More]
Gainful Employment Rule
States Accuse Betsy DeVos Of Failing To Protect Students From Sketchy For-Profit Schools
By 10.17.17
Education Secretary Betsy DeVos has made no effort to hide her support for the for-profit education industry, going so far as to hit “reset” on rules intended to protect students from schools that provide minimal education at a maximum cost. Now, a coalition of 18 state attorneys general are suing DeVos and the Dept. of Education, alleging they failed to hold these schools accountable. [More]
Former Lobbyist, Son Of Student Loan Debt-Collector, Resigns From Dept. Of Education
By 3.22.17
In our recent story on the Trump administration’s decision to roll back protections for potentially millions of student loan borrowers, we also told you about new Department of Education advisor Taylor Hansen, a former lobbyist for the for-profit college industry whose father is the CEO of a student loan debt collection company that has been suing Taylor’s new employer since 2015 for the right to charge thousands of dollars in fees to people who are already having trouble paying back their loans. Now comes news that Hansen’s brief life as a federal employee has come to an end. [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]
Rule Aims To Hold For-Profit Schools Accountable For Grads’ Success, But May Fall Short
By 10.30.14
The Dept. of Education has been trying for years to craft a “gainful employment” rule that would penalize schools — mostly for-profit career training programs — by taking away access to federal funds if they fail to provide the adequate tools for their students to find work. Two years after failing to enact a heavily compromised version of these rules, the Ed. Dept. folks have unveiled the latest version with stricter guidelines, but which some consumer groups say don’t do enough to protect students at these schools. [More]
