March 25, 2016

Education Dept To Give Debt Relief To More Corinthian Students

The U.S. Department of Education says that at an event scheduled for today in Boston with Massachusetts Attorney General Maura Healey, Secretary of Education John B. King Jr. will announce that students who attended 91 former Corinthian Colleges campuses nationwide between 2010 and 2014 “have a clear path to loan forgiveness under evidence uncovered by the Department while working with multiple state attorneys general.” These students will be able to apply immediately to have their federal direct student loans forgiven because of alleged fraudulent conduct by Corinthian.

The Department’s special master for debt relief issues, Joseph A. Smith, who is also scheduled …

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March 19, 2016

Another Univ. of California Leader Quits Another For-Profit College Board

Late on Friday, controversial for-profit college company Bridgepoint Education reported in a filing with the Securities and Exchange Commission that Marye Anne Fox, Chancellor Emerita and current Distinguished Professor of Chemistry at the University of California, San Diego, had resigned from the company’s board of directors on Thursday, “effective immediately.” Bridgepoint’s filing says, “Dr. Fox’s decision to resign from the Board was for personal reasons not related to any disagreement with the Company relating to the Company’s operations, policies or practices.”

If so, the timing was bad.

On March 1, University of California-Davis’s current chancellor, Linda Katehi, resigned from …

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March 18, 2016

Strong Mandatory Arbitration Ban on For-Profit Colleges in Peril

Last Friday the Department of Education took a strong stand in favor of banning colleges that receive federal student aid from forcing students to bring disputes with their schools into secret arbitration proceedings, rather than allowing students to go to court.  Today in the middle of the last day of the negotiated rulemaking session on student loan forgiveness, the Department has backed away for now, endorsing the weaker of two options — it would constrain but not end mandatory arbitration.  Public Citizen and Fair Arbitration Now already have explained why the Department has ample legal …

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March 17, 2016

Top Democratic Lawyer Pushed Pentagon To End U. of Phoenix Suspension

Lawyer Jamie Gorelick, who served in the Bill Clinton Administration as general counsel of the Department of Defense and later as Deputy Attorney General, this year successfully pressed the Pentagon on behalf of the nation’s biggest for-profit college, the University of Phoenix, to lift a suspension of the school for alleged recruiting abuses directed at U.S. military service members.

The University of Phoenix, which has been getting $2 billion to nearly $4 billion a year in taxpayer funds, has a troubling record of spending too little on instruction, charging high prices, and leaving many students worse off than when they …

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March 14, 2016

VA To Warn Veterans About DeVry

The Department of Veterans Affairs today suspended for-profit DeVry University from the VA’s “Principles of Excellence” status under the GI Bill.  The VA said in a statement that it had taken the action after it had reviewed a recent lawsuit filed by the Federal Trade Commission alleging that DeVry has engaged in deceptive marketing.

In today’s statement and in a letter to DeVry, the VA said it will remove DeVry’s “Principles of Excellence” approval status, which indicates a commitment to protecting students, from the VA’s GI Bill Comparison Tool, and will place a warning flag on all DeVry University campus …Continue Reading »

March 11, 2016

Dept of Educ Wants To End “Outrageous” Forced Arbitration by For-Profit Colleges

The Department of Education tonight released a new draft of regulations on student debt relief, in advance of the third round of rulemaking meetings to be held next week, and in a press release (see below) accompanying the proposal the Department appears to take a hard line against the fine-print language that for-profit colleges have been using to force students to resolve their disputes with a school through secretive arbitration proceedings, rather than in court.

The draft regulations appear to follow suit, laying out two options regarding mandatory arbitration, including one that requires schools participating in the …

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March 8, 2016
Mark Boisclair Photography, Inc.

Arizona: For-Profit College Paradise?


As government regulators and law enforcement agencies in Washington and around the country have come to recognize that some of the biggest for-profit colleges have been deceiving and abusing students, and as media reports have exposed these abuses, and as many students have started to look elsewhere for their educations, at least one State — Arizona — seems to remain firmly in the political clutches of for-profit schools.

Arizona is not just the site of the only NFL stadium who naming rights are purchased by a for-profit college. It’s also where for-profit colleges, backed by sympathetic legislators, …

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March 8, 2016

Appeals Court Rejects For-Profit College Attack on Obama Rule

A three-judge panel of the U.S. Court of Appeals in Washington DC this morning rejected the for-profit college trade group’s challenge to the Obama Administration’s gainful employment rule, a regulation that holds career training programs accountable for consistently leaving students with overwhelming debt.  Perhaps recognizing that the war of words over the rule had gone on long enough and that the case was not a close call, the Court of Appeals issued a brief four-page opinion affirming a trial court’s rejection of the challenge brought by the troubled trade group APSCU. The appeals court noted that …

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