June 27, 2016
highbloom

Ex-Trump University Executives Run College That Gets $150 Million from Taxpayers

Two former high-ranking executives of Trump University are now two of the top executives at a Florida-based career college, Ultimate Medical Academy, that has 13,000 students enrolled, has been receiving more than $150 million annually in federal student aid, and is accredited by the imperiled agency ACICS. The school, previously a for-profit institution tied to a New York-based investment company, last year was acquired by a Denver-based tax-exempt non-profit organization that had little activity prior to the merger.

Ultimate and Trump

Presumptive GOP presidential nominee Donald Trump has faced scrutiny for his unlicensed real estate “university,” which has been sued …

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June 24, 2016
naciqihrng

For A Day, Broke Students Win

In a world of mass shootings, Brexit, and a looming dramatic presidential election, the deliberations of the U.S. Department of Education’s National Advisory Committee on Institutional Quality and Integrity (NACIQI), in a nondescript meeting room at the DoubleTree Crystal City in Arlington, VA,  would hardly seem to matter.

But, yesterday, it did matter. By the scheduled 8:30 am start time, the room was hot and packed, with seemingly more people, at least, than at any 2016 Jeb Bush event. At stake were billions of dollars that for-profit colleges want to keep getting, the integrity of federal aid programs, and the futures of countless …

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June 22, 2016
debt

Give the Obama Student Loan Servicing Plan a Chance

Guest Post by Deanne Loonin (attorney and advocate for low-income student loan borrowers)

Programs to help struggling student loan borrowers will only succeed if servicers effectively do their jobs and provide high quality information and assistance.

Servicers are a borrower’s primary point of contact.  Ideally, they should provide borrowers with accurate and comprehensive information about their options and help them get relief.  The reality of the current servicing system, unfortunately, is far from this ideal.

Quality, borrower-centric servicing is essential, but often overlooked in policy debates.  The Obama Administration has started to pay attention, recognizing the flaws in the …

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June 21, 2016
College+cash

Friends In High Places: Who Endorses America’s Troubled For-Profit Colleges?

 

 

Today Republic Report is releasing a brand-new investigative report: Friends In High Places: Who Endorses America’s Troubled For-Profit Colleges? 

Our report describes in detail the network of prominent Americans — lawyers, lobbyists, board members, university presidents, politicians, celebrities, and others — who continue to lend their credibility and talents to defending or promoting seven of America’s biggest for-profit college companies, amid growing indications, including law enforcement investigations, that these companies have engaged in predatory practices that harm students and taxpayers.

You can read and download the report here (pdf).  Or read it all below.

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June 15, 2016
acicslogos

Dept. of Education Staff Moves to Dump For-Profit College Accreditor

 

The staff of the U.S. Department of Education has just recommended that a controversial college accrediting body face what a Department official labeled “termination” — an end to recognition by the Department as an agency that accredits schools. The Accrediting Council for Independent Colleges and Schools (ACICS), founded in 1912, has been under fire for a year as part of the fallout of the collapse of giant for-profit Corinthian Colleges, which was exposed for egregious deceptions of students and taxpayers.

According to the Department, ACICS currently accredits 243 institutions exclusively or primarily, and most of those are for-profit colleges. …

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June 13, 2016
Steve-Gunderson-President-CEO-APSCU

For-Profit College Lobbyist Gives the Game Away

It is absolutely stunning that the for-profit colleges’ chief lobbyist, Steve Gunderson, told a reporter today that a new Obama Administration proposed rule — a rule that would finally give students and taxpayers some leverage to recover payments for abuses by predatory schools — “will crush career education.”

What does that say about the performance and intentions of the schools he represents? It says, I believe, that many of these schools have made a lot of their money, in reality, by deceiving, over-charging, and abusing students, and if they can no longer do that with …

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June 8, 2016
debtcollective

Why We Need A Strong Student Debt Relief Rule

The Obama Administration is on the verge of issuing a proposed rule that would create new procedures and standards for cancelling the federal student loan debt of people who were defrauded by their colleges. The rule would also create new standards for the Department of Education to require colleges to post escalating letters of credit based on concerns about their operations. And it would ban or limit the ability of a college receiving federal aid to force students to resolve claims in private, secret arbitrations, rather than in court.

There were several months of public negotiations on a rule

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June 6, 2016
ITTbldg

As APSCU Meeting Opens, Ex-Members Make Big News

The for-profit college trade association APSCU opened its conference today in Orlando, and amid sessions about dealing with increased government scrutiny after APSCU’s failed lobbying strategy, there was news about two former APSCU members:

Massachusetts Attorney General Maura Healey today announced a June 2 agreement under which for-profit American Career Institute (ACI), which shut down abruptly in 2013, has admitted to deceiving students and falsifying documents.  According to Healey, in 2012 alone, ACI received more than $30 million in federal student aid, about 89 percent of its total revenue.  Healey alleged, and ACI admitted, according to Healey’s press release

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