February 9, 2016
westwood

Education Dept. Sent Corinthian Students to Westwood. Now Westwood Is Closing …

Last spring, when for-profit Corinthian Colleges abruptly shut down under the weight of allegations of deceptive acts, Corinthian students had a choice under U.S. Department of Education rules: transfer to another school, or receive a “closed school discharge,” which would free them from the obligation of repaying the student loans they had incurred at the school. The Department seemed to be steering Corinthian’s students toward the transfer option. That may have been because forgiving the loans of all those Corinthian students would have created an enormous expense for taxpayers — perhaps hundreds of millions of dollars.

But because many …

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February 8, 2016
phoenixad

University of Phoenix: New Boss, Same as Old?

Today, the University of Phoenix’s owner, Apollo Education Group, announced a $1.1 billion deal to be acquired by a consortium of investors including Apollo Global Management (no relation) and the Vistria Group, a private equity firm that includes Tony Miller, who was Deputy Secretary of Education under President Obama from 2009-2013. Miller would become Chairman of the Apollo Education Group Board. Would this be a good deal for America’s students and taxpayers?

The University of Phoenix, by far the largest for-profit college, has seen a dramatic decline in enrollments and revenues in recent years, as the public has become aware of …

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February 8, 2016
trace1

Credit Suisse Analyst Who Touts DeVry Previously Touted Corinthian

Credit Suisse got the attention of Wall Street last week when it issued a report recommending that investors buy shares in one of the largest for-profit college companies, DeVry Education Group. The report came less than a week after the Federal Trade Commission sued DeVry for allegedly misleading students about job placement rates and salaries for the school’s graduates, with damages potentially reaching $8.6 billion.

The Credit Suisse analyst note, issued last Tuesday, told investors that DeVry shares were worth $29 — more than 50 percent higher than the trading value that day. On Wednesday, the stock closed up by 9.73% …

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February 5, 2016
ITTbldg

ITT Tech, Settling Shareholder Suits, Pledges Reforms

Last week, troubled for-profit college company ITT Tech settled a series of lawsuits brought by shareholders that charged ITT with various securities law violations.  Under the agreement, approved preliminarily by Manhattan federal judge J. Paul Oetken on Jan. 29 but still subject to objections by investors, ITT will pay lawyers for the plaintiffs $1.1 million and commit to a series of “corporate governance reforms,” including ITT commitments that:

Two-thirds of the ITT board of directors will be independent.
Bonuses and separation agreements will take into account executives’ compliance with the law.
ITT will publicly disclose its insider trading policy.
ITT will adopt a “Clawback and …Continue Reading »

February 3, 2016
tedned

Dear God Do Not Leave America Alone with Ted Cruz


Apparently 27.6 percent of Iowa Republican caucus goers — 51,666 people — think Senator Ted Cruz of Texas should be President of the United States. That made him the biggest winner coming out of Iowa, heading into the crucial New Hampshire primary.

Heaven help us if Ted Cruz becomes President. I’m not referring to his policy views, although I find those extreme and disturbing. I’m not even referring, really, to his aggressive embrace of a no-compromise approach to politics, which has alienated him from nearly every United States Senator, Republican and Democrat.

I’m focused on something else. There is …

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February 1, 2016
militaryquinst

Military-Branded Websites Push Veterans to Troubled For-Profit Colleges

In a well-publicized 2012 action, the attorneys general of 20 U.S. states stopped a company called QuinStreet from using a military-branded website, GIBill.com, to steer American veterans to controversial for-profit colleges. But it turns out that marketers, including QuinStreet itself, have continued to engage in similar practices since then.

Websites such as Military.com and GIJobs.com still push vets and military service members to schools including ITT Tech, Kaplan, and Education Management Corp.’s (EDMC) Art Institutes — institutions that often charge students sky-high prices, spend too little on instruction, and leave dropouts and graduates alike without the careers they sought and buried …

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January 27, 2016
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Federal Trade Commission Sues For-Profit DeVry For Deceiving Students

The U.S. Federal Trade Commission today filed a lawsuit against one of the largest for-profit colleges, DeVry University, for allegedly misleading students about job placement rates and salaries for the school’s graduates.  The FTC complaint, filed in federal court in Los Angeles, alleges, “Through the use of English and Spanish-language advertisements and other marketing materials, and during sales pitches with prospective students [DeVry has] made deceptive representations about the benefits of obtaining a degree.”

DeVry last year received $1.47 billion in taxpayer dollars from federal student grants and loans.

The complaint focuses on claims that DeVry repeatedly made in its TV, …

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January 26, 2016
USEACEOs

Energy Lobbyists Gather, Blame Obama and the Pope

Last week, on the day after the National Oceanic and Atmospheric Administration reported that 2015 was by far the hottest year on record, the energy industry’s chief lobbyists gathered in a downtown Washington ballroom to tell each other that the real problem was not global warming, but rather efforts by the Obama Administration — and Pope Francis — to contain global warming.

The remarks of these lobbyists suggested that many of them live on a different planet, where climate change is not an urgent challenge but rather is the obsession of ideological malcontents.

The meeting, held annually, is sponsored by the United States Energy Association, …

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