November 30, 2015
EDMC

Congress On Verge of Big Gift to For-Profit College EDMC

After settling multiple law enforcement investigations this month on absurdly favorable terms, troubled for-profit college company Education Management Corp. (EDMC) may be on the verge of getting a sweetheart deal from Congress — a deal that could compound the harms that the company already has caused to students and taxpayers.

A provision in the highway bill conference agreement would amend the federal Trust Indenture Act in a way that could benefit retroactively two corporations that are facing potential bankruptcy — the casino giant Caesars Entertainment Corp. and EDMC, which operates the Art Institutes, Argosy University, Brown Mackie College, and …

Continue Reading »

November 25, 2015
perezmug

Strip Mall For-Profit College Owners Locked Up; Wall Street Owners Walk Away

On Tuesday, a federal jury in Miami convicted Alejandro Amor, the owner of shut-down FastTrain College, of theft and conspiracy. Amor gained notoriety when it was disclosed that FastTrain, a for-profit college, used strippers to recruit students, but the offense for which he now faces a long prison sentence was enrolling, and cashing federal financial aid checks for, some 1,300 students who were ineligible because they lacked a high school degree. Before FastTrain was shut down by an FBI raid in 2012, it received, over five years, about $35 million in federal taxpayer-funded Pell grants and student loans. Federal prosecutors have acted to seize …

Continue Reading »

October 29, 2015
mccain-senate-floor

McCain Lashes Out At Durbin, Defends Veteran-Abusing For-Profit Colleges

Senator John McCain (R-AZ), in a speech on the Senate floor yesterday afternoon, charged that fellow Senator Dick Durbin (D-IL) has “orchestrated” a “shameful … vendetta against for-profit universities.” McCain upped the ante by asserting that Durbin has a “well-known record of not supporting the men and women who are serving in the military.” Alleging a larger conspiracy, McCain repeated accusations in a recent Wall Street Journal editorial that “the Obama Administration’s military tribunal is punishing” the biggest for-profit college, the University of Phoenix “for being a target of the political left” and that “General Durbin has commanded the Education Department and Department …

Continue Reading »

October 22, 2015
mccainalexander

McCain, Alexander Press DoD To Back Off Probe of U. of Phoenix, Their Donor

Republican Senators John McCain (AZ), Jeff Flake (AZ), and Lamar Alexander (TN) wrote today to Secretary of Defense Ashton Carter calling on him to “reconsider” the Department’s decision to put the largest for-profit college, the University of Phoenix, on probation for alleged violations in recruiting U.S. military service members.

All three Senators have received significant campaign contributions from officials of Apollo Education Group, the owner of the University of Phoenix; the company is the largest donor in the 2016 election cycle to both Flake and Alexander, who is chair of the Senate committee overseeing education policy. Alexander received

Continue Reading »

October 20, 2015
pole

For-Profit College Owner, Who Used Strippers As Lure, Goes On Trial

Alejandro Amor (pictured just above), the former owner-CEO of for-profit FastTrain College, is scheduled to face a jury trial in Miami Wednesday morning. Amor and his co-defendant, former FastTrain admissions staffer Anthony Mincey, face criminal charges of defrauding the federal government to obtain about $6.5 million in student aid — Pell grants and Direct Loans. Two other FastTrain employees charged in the case, Jose Gonzalez and Michael Grubbs, already have pled guilty and are on the government’s witness list.

Amor and FastTrain gained national attention in late 2014 when federal and state prosecutors alleged in court papers that the school “purposely hired …

Continue Reading »

October 14, 2015

Purveyors of Wisdom on Higher Ed Panel Have Advanced Harmful For-Profit College Agenda

Today, the day after the New York Times ran a blockbuster front-page lead story describing some of the worst ongoing abuses of big for-profit colleges, one of the nation’s leading higher education philanthropies kicked off a major conference in Washington with a panel giving its place of honor to the retired former chairman of the House of Representatives committee on education, Howard “Buck” McKeon (R-CA).

It can be said that in Congress, McKeon truly made his mark on higher education. Before his retirement earlier this year, McKeon worked to unshackle the for-profit college industry from sensible safeguards and then to block reforms aimed …

Continue Reading »

October 12, 2015
Lieberman-No-Labels

Group Holding Bipartisan Presidential Debate Today is Dominated by Corporate Lobbyists

The non-profit group No Labels held an unusual candidate forum this morning in New Hampshire. The “No Labels Problem Solver Convention” featured five Republicans plus three Democrats — including Donald Trump, Chris Christie, John Kasich, Bernie Sanders, and Martin O’Malley — all at the same event.

No Labels has been organizing on the ground in primary states, and the group’s pitch is appealing: putting America’s progress ahead of partisanship. It’s true — with a closely divided electorate, we can’t get things done without bipartisan cooperation. This morning, No Labels co-chair Jon Huntsman, Jr. (R), the former Utah governor, explained the group’s viewpoint …

Continue Reading »

October 8, 2015
chambercommerce

For-Profit Colleges Enlist Capitol Hill Supplicants, US Chamber In Renewed Push Against Obama Rule

The for-profit college’s trade association, APSCU, was once mighty but is now hobbled, discredited, and depleted. Yet the group, and its industry, still have the money — most it from taxpayer-funded student aid to its schools —  to lobby, give campaign contributions to politicians, and hire lawyers to fight its biggest piece of Kryptonite: the Obama Administration’s “gainful employment” rule. The Department of Education issued this regulation earlier this year, and it is scheduled to go into effect at a still-undetermined time.

APSCU challenged the rule in federal district court, but Judge John D. Bates, a George …

Continue Reading »

-->