September 10, 2014
gunderson3

APSCU, Chamber Sought to Stack Rulemaking Panel With Execs From Troubled For-Profit Colleges

The main lobbying group for America’s for-profit colleges, APSCU, proposed last year to stock the Department of Education’s 28-member negotiated rule-making panel on the crucial “gainful employment” rule with 11 nominees, nine of whom were executives at APSCU-member for-profit college companies, including multiple companies now under investigation by law enforcement. Correspondence obtained from the education department by Republic Report under the Freedom of Information Act shows that APSCU CEO Steve Gunderson, in a 12-page letter dated July 12, 2013, denounced the regulatory process and demanded that the Department halt it, but nevertheless proposed a slate of nominees for the panel, including executives …

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June 30, 2014
gunderson

For-Profit College Group APSCU Has Consistently Harbored Fraudulent Schools

I mailed this letter today to Mr. Arthur E. Benjamin, Vice Chair, American Institutes Holdings LLC; Mr. Donald E. Graham, Chairman and CEO, Graham Holdings Company; and Mr. Steve Gunderson, President and CEO, Association of Private Sector Colleges and Universities.

Dear Mr. Benjamin, Mr. Graham, and Mr. Gunderson:

I am writing regarding the career college sector and the gainful employment rule. The Obama administration’s proposed rule, implementing a congressional requirement, would, eventually, remove federal student aid from some career education programs that consistently leave their students with debt they cannot afford to repay.

Companies …Continue Reading »

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October 11, 2013
ab7

Discredited For-Profit College Operator Still Part of APSCU Trade Group

The Association of Private Sector Colleges and Universities, or APSCU, is the Washington, DC-based lobbying group for America’s for-profit colleges. APSCU has opposed a wide range of reasonable efforts by the Obama Administration and Members of Congress to hold bad actors in its industry accountable for waste, fraud, and abuse with the roughly $32 billion a year in federal tax dollars they receive. APSCU and its many aggressive lobbyists and lawyers appear to take the position that its members are entitled to this taxpayer money, without strings, in perpetuity, despite the overwhelming evidence that many for-profit colleges have …

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May 21, 2012

Just Who Are The Students For-Profits Lobbying Group APSCU Is Committed To Putting First?

The Association of Private Sector Colleges and Universities is the primary lobbying group for the for-profit college industry. As we’ve reported before on Republic Report, some APSCU member schools have a record of fraudulent practices: targeting veterans and low-income people for recruitment while maintaing atrocious drop-out and loan default rates. APSCU and its members spend thousands of dollars lobbying politicians from both parties, while its schools are financed primarily by government grants and loans to students. APSCU essentially works on behalf of numerous predatory schools that deceive students on the taxpayer’s dime.

But if you visit its website, APSCU …

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November 24, 2014
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For-Profit College Marketer Thrived By Posting Fake Ads To Popular Job Sites

 

Neutron Interactive, a Salt Lake City-based business, regularly posted fake job listings on popular job websites including Monster.com and CareerBuilder.com for the purpose of tricking job-seekers into visiting its own websites, according to former Neutron employees. These Neutron Interactive websites, still operating today, also promise jobs, but in reality they usually offer none; their real purpose, say these former employees, is to convince visitors — low-income people, single mothers, veterans, the elderly, all in desperate need of jobs — to provide their cell phone numbers, so marketers at other companies, which pay Neutron for the leads, can sell them overpriced for-profit college programs.

Neutron Interactive’s Continue Reading »

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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 13, 2014
MedCareer1

More Scam Websites to Lure the Poor to For-Profit Colleges

Yesterday I reported on how a Utah-based company, Neutron Interactive, operated a website that promised jobs but was in reality a scam — it seemed to function mainly to send customer leads to at least one other company’s Salt Lake City call center, called EdSoup, whose only purpose, in turn, is to recruit people, mostly low-income people, to high-priced training programs at for-profit colleges. Similar sites promise food stamps, Medicaid, and heating assistance, but all lead to more pitches to sign up for expensive programs at the University of Phoenix, Brown Mackie, Colorado Tech, Kaplan, and other for-profits.  EdSoup …

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November 12, 2014
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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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