It’s become increasingly clear from law enforcement, congressional, and media investigations that many for-profit colleges are selling a product that can be toxic to students — high-priced, low-quality programs that often leave graduates and dropouts alike without improved career prospects and paralyzed by student loan debt, often $100,000 or more.  So when the for-profit college
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New York Times economic columnist Eduardo Porter has a piece this morning seeking to raise doubts about the Obama Administration’s proposed “gainful employment” rule. The rule would, eventually, take away eligibility for federal student aid from career training programs that consistently leave their students with overwhelming debt. While Porter does quote some proponents of the
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Steve Gunderson, the former congressman (R-WI) who heads APSCU, the lobbying group for America’s for-profit colleges, seems to be getting desperate. The industry he represents is seeking once again to block the Obama Administration from issuing a “gainful employment” rule that would, eventually, cut off federal student aid to career training schools that consistently leave
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A front-page New York Times article on Thursday reported on a lawsuit brought by former employees of the for-profit Harris School of Business alleging fraud at the school. The suit, filed under the federal whistleblower law, asserts that Harris regularly misleads students about the value of its programs, and signs up even students who have little
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The Obama Administration’s “gainful employment” rule, aimed at protecting students from predatory career colleges, has gone from the Department of Education to the White House Office of Management and Budget, which is holding meetings with interested parties. These include representatives of our coalition of student, veterans, civil rights, consumer, and other groups seeking a strong
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The second largest for-profit college company, Pittsburgh-based Education Management Corporation (EDMC), is facing severe challenges. The company, 41 percent owned by Goldman Sachs, held a conference call for investors last week, and the data was not good — enrollment and revenue remain down. Market analyst reaction was lukewarm at best, and the company’s stock price plunged
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A year ago, if you were Jack Massimino, CEO of  Corinthian Colleges, you might have been feeling pretty good.  Despite extensive evidence from congressional and media investigations that Corinthian, along with other big for-profit colleges, has been abusing students — luring them with deceptive recruiting, offering high-priced, low quality programs, and often leaving them without
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Developments are happening at lightning speed on for-profit college issues. This morning: 1. The Department of Veterans affairs launched a new website, the GI Bill Comparison Tool, allowing vets, and to some extent other students, to compare college options. The initiative is part of action on President Obama’s 2012 executive order to protect vets and current service
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