Report Exposes For-Profit College Abuses in Converting to Non-Profits
An investigative report released this morning documents how some for-profit college owners have converted their companies into non-profit schools in a way that allows them to evade the regulatory obligations and deservedly bad reputation of for-profits while continuing to reap enormous financial benefits. These operators have done so, the report finds, by subverting the rules governing non-profit schools, while the
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House Democrat Group Asks Administration To Forgive Debt of All Corinthian Students
A group of Democratic members of the House of Representatives are sending a letter this morning calling on the Department of Education to “automatically discharge the debt” of all students who attended campuses run by now-bankrupt Corinthian Colleges, one of the worst actors in the scandalized for-profit college sector. The letter, spearheaded by Reps. Keith Ellison (D-MN)
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For-Profit College Lobbyist Explains Decades of Fraud as Humanitarian Mission
A Politico profile of Secretary of Education Arne Duncan quotes just two commenters regarding the Obama Administration’s effort to curb abuses by for-profit colleges, and both of them have been long-time lobbyists for the industry: bulldog lawyer Lanny Davis and former congressman Steve Gunderson (R-WI), who heads the industry’s main trade group, APSCU. Only Duncan is
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Mass. Attorney General: For-Profit College Kaplan Deceived Students
Massachusetts attorney general Maura Healey today announced settlements of her investigations of two large for-profit college chains — Kaplan and Lincoln Technical Institute — for unfair and deceptive student recruiting practices. Kaplan will pay $1.375 million to former students, and Lincoln Tech will pay out about $1 million. Court documents filed in the matters describe the
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Corinthian to Justice Dept: Get Our Docs Before ECMC Abandons Them
A lawyer for shut-down Corinthian Colleges has written to a U.S. Justice Department lawyer investigating the for-profit college company, warning that some school records may be “abandoned” as soon as next month. The June 29 letter, obtained by Republic Report, opens a window into the Corinthian litigation, and also highlights questions about the U.S. Department of Education’s decision to
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Debt Collection Agency Run By Ex-Bush Official & Ex-Corinthian Exec Sues To Pile More Penalties on Broke Students
Inside Higher Ed reports today that USA Funds, a corporation engaged in collecting federal student loan debts from borrowers, has sued the U.S. Department of Education over a policy statement the Department released last week barring companies from charging loan collection fees to students who default but promptly make arrangements to resume payments. USA Funds’s complaint says the
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APSCU Letter To For-Profit Colleges: Our New Direction
Former congressman Steve Gunderson (R-WI), president of the for-profit colleges’ main trade association, APSCU, this morning sent a dramatically-worded letter to APSCU members announcing organizational changes that “have the potential to create a new beginning for the sector and the association.” In the circumstances, his words were reminiscent of Spinal Tap’s David St. Hubbins, who
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Big For-Profit Colleges Quit Trade Group APSCU
Some of the largest for-profit college companies — including, last month, DeVry and Kaplan — have recently left the industry’s main trade group, the Association of Private Sector Colleges and Universities (APSCU). The defections have come amid a rapid decline in the reputations and fortunes of many for-profit colleges — and the apparent failure of
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