November 20, 2014
1aRibbon-Cutting

ECMC CEO Explains Deal To Buy Troubled Corinthian Campuses

Confirming rumors that have swirled for weeks, today ECMC Group announced it has reached an agreement to acquire 56 of the 107 campuses now owned by the crumbling, discredited Corinthian Colleges for-profit chain.  A corporate filing from Corinthian says the purchase price is $24 million.  I spoke with ECMC’s CEO Dave Hawn this morning to discuss.

ECMC, a non-profit corporation with both for-profit and non-profit subsidiaries, says it will convert the 56 Everest and WyoTech campuses to nonprofit status. ECMC announced it will “transform the culture and education model at the acquired schools,” including by cutting tuition and “introducing strict accountability standards …

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November 12, 2014
Screen Shot 2014-11-10 at 12.22.16 PM

Scam: Websites Promising Jobs And Medicaid Are Instead Bait for For-Profit College Telemarketers

A network of U.S. marketing companies run glossy websites promising jobs, health benefits, food stamps, and heating assistance, sites with names like localemploymentnetwork.org or medicaidinsurancebenefits.com. But according to former employees of a company connected to these operations, the real purpose of these sites is a classic bait-and-switch: to get low-income people, single mothers, veterans, and unemployed older people on the telephone and push them into high-cost for-profit college programs.

Based on the accounts of these employees, and documents they have provided to Republic Report, the operations may well be in violation of federal statutes prohibiting deceptive marketing and unwanted telephone sales calls, as well as Department of …

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November 7, 2014
Steve-Gunderson-President-CEO-APSCU

Entitled For-Profit Colleges File Meritless Suit to Block Obama Rule

On Thursday, November 6, the national trade association of for-profit colleges, APSCU, sued the Obama Administration in federal court in Washington DC to strike down the new 2014 “gainful employment” rule. The complaint repeats many of the claims from APSCU’s suit to strike down the 2011 gainful employment rule: that the U.S. Department of Education didn’t have the authority to issue such a rule; that the Department has not provided a reasoned basis for the rule; and that the rule is “unlawful, arbitrary, and irrational.” (The same day, the New York-based Association of Proprietary Colleges filed a separate suit to …

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October 27, 2014
hrc

2014 Campaign Shows Growing Public Disdain for Predatory For-Profit Colleges

In the 2o12 election campaign, when a reporter asked GOP candidate Mitt Romney what he planned to do about higher education and college affordability, Romney praised for-profit colleges, and particularly one school, Florida’s Full Sail University, for its ability to “hold down the cost of their education.” It was eventually exposed that: (1) Full Sail was perhaps the third most expensive college in America, (2) Full Sail’s owners were heavy contributors to the Romney campaign, and (3) Romney’s own private equity firm was actually invested in Full Sail.  But whatever Romney’s motives in singling out this sector, it was notable that …

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October 22, 2014
obamaafford

As For-Profit Colleges Fight For Their Right to Abuse Students, It’s Obama’s Time To Decide

The Obama Administration is scheduled to issue, within the next few weeks, a regulation called the gainful employment rule, aimed at cutting off federal student aid to college-level career training programs that consistently leave their students drowning in debt. Lobbyists for the for-profit college industry are pressing the White House hard to weaken the rule or drop it altogether. It’s a critical moment for the public to take another close look at this industry, which now has 13 percent of all U.S. college students and swallows more than a quarter of federal aid — over $30 billion a year in taxpayer …

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October 2, 2014
amor

Photos: Lavish Lifestyle of Miami For-Profit College CEO Indicted Today For Stealing From Taxpayers

A federal grand jury has indicted the former owner-CEO and three other ex-staff of Miami-based FastTrain College, a for-profit school that had ties to Florida Members of Congress before the FBI raided its campuses in 2012.

The South Florida Business Journal reported late this afternoon that the former CEO, Alejandro Amor, 56, (pictured above), was arrested and appeared in federal court in Miami today, along with former admissions officers Jose W. Gonzalez, Michael Grubbs, and Anthony Mincey.  The 15-count indictment charged the four with theft of government funds, and each could face five years …Continue Reading »

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September 17, 2014
suzeorman

VIDEO: With Senator Warren Watching, Suze Orman Denies, Admits, Rationalizes Teaching at University of Phoenix

At an event in Washington DC this morning, speaking alongside Senator Elizabeth Warren (D-MA), financial guru Suze Orman at first seemed to deny what is a documented fact: that she teaches a personal finance course at the nation’s biggest for-profit college, the University of Phoenix.  Then Orman admitted it, but offered a wholly unconvincing explanation.

The event, hosted by Politico and sponsored by Starbucks, addressed the issue of educational opportunity and student debt, issues on which Senator Warren has been a leader. Having read a tweet I sent yesterday, Politico reporter Allie Grasgreen asked Orman a highly relevant question:

Q: Suze, are …

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September 16, 2014
Richard Cordray

Consumer Protector Cordray: Corinthian Colleges Deceived And Bullied Students

For a couple of years now, I’ve argued that Corinthian Colleges might be the worst predator of all the big for-profit college companies, a remorseless giant engaged in endless abuses of students who needed career help, not more problems. But now that Corinthian, which was taking in as much as $1.4 billion a year in taxpayer dollars, is collapsing under the weight of law enforcement probes and bad student outcomes, I worry that a prolonged focus on Corinthian’s horrid acts might allow other terrible actors in the for-profit college industry to sneak out the back door.

Indeed, the rest of …

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