FTC Goes After For-Profit School for Lying and Deceiving Students That Also Targeted Military Members

An Illinois-based operator of several post-secondary schools will pay $30 million to settle Federal Trade Commission charges that the operator used sales leads from lead generators that falsely told consumers they were affiliated with the U.S. military, and that used other unlawful tactics to generate leads. In its complaint against Career Education Corporation (CEC) and … Read more

Is a For-Profit College Degree Worth Less or Worthless?

In an earlier post, we studied how educational attainment affects labor market outcomes and earnings inequality. In this post, we investigate whether these labor market effects were preserved across the last business cycle: Did students with certain types of educational attainment weather the recession better? Focusing on students’ labor market outcomes during 2003-14 (a period … Read more

Education Corporation of America Tries to Slam Door to Keep Out Plaintiffs

Update: The Judge hearing the ECA case, dismissed it after the guest post below was submitted. I guess it’s game on again. Education Corporation of America (ECA), a for-profit college chain, brazenly filed a federal lawsuit in Alabama last month, asking Judge Abdul Kallon to put it into receivership and enjoin all litigation against it. … Read more

These Three Charts Will Tell You Where to Go to College

The Department of Education, for now, publishes a tremendous amount of data on educational results. This data is an eye opener if you want to pick the type of 4-year education that has the lowest chance of graduating. Private Non-Profit 4-Year School Public 4-Year School For-Profit 4 Year School What makes these statistics even worse … Read more

For-Profit Colleges Gain Beachhead in Trump Administration

by Annie Waldman ProPublica, March 14, 2017, 8 a.m. Until June 2016, Taylor Hansen lobbied for the largest trade group of for-profit colleges. At the forefront of its agenda: eliminating a rule known as “gainful employment,” which can take away federal funding from for-profit colleges if their graduates fail to earn enough to repay student … Read more

Analysis Finds Many For-Profit Schools Bending Federal Student Loan Limits

New analysis released today by the U.S. Department of Education reveals many for-profit schools would likely exceed the 90/10 federal funding limits if revenue from Department of Veterans Affairs (VA) and the Department of Defense (DOD) programs were included in the 90/10 calculation the same way Title IV funds are included. The annual 90/10 report … Read more

Dept of Ed Settlement With DeVry University Raises Serious Issues

The Department of Education just announced a settlement with DeVry University that appears to have some big implications for consumers. I’ll post the announcement below and include my comments in the appropriate sections. U.S. Department of Education Reaches Settlement with DeVry University Over Job Placement Claims The U.S. Department of Education today announced a settlement … Read more

This is Why Most For-Profit Colleges Really Suck – Loan Defaults and No Degree

The Federal Reserve Bank of New York just came out with information that certainly paints a bleak picture of the success of attending a for-profit college. It surely seems to present data that would lead you to believe heading off to a for-profit college is more of a chance of failure than success and debt, … Read more

The Utter Explosion in For-Profit College Student Loans

This article is a repost from the smart and good folks at the Federal Reserve Bank of New York. In the first post in this series, we characterized the rapid transformation of the higher education market over the 2000-2015 period, a transformation that was led by explosive growth of the for-profit sector of higher education. … Read more

ECMC Called Liar by Senator Durbin – Critical of For-Profit Colleges

U.S. Senator Dick Durbin (D-IL) today said that Congress can’t continue to look the other way when it comes to abuses by the for-profit colleges that – in some cases – take in more than 90% of their revenue from the federal government yet account for these startling lopsided statistics. He states the for-profit colleges … Read more

CFPB Sues For-Profit Colleges to Stop Screwing Students

The CFPB announced yesterday they filed suit against ITT Educational Services, the owner of a number of for-profit colleges. The Consumer Financial Protection Bureau (CFPB) filed a lawsuit against ITT Educational Services, Inc., accusing the for-profit college chain of predatory student lending. The CFPB alleges that ITT exploited its students and pushed them into high-cost … Read more

For-Profit Schools Donate to Lawmakers Opposing New Financial Aid Rules

by Sharona Coutts, ProPublica Between 2005 and the beginning of this year, Rep. Donald M. Payne, D-N.J., received $6,000 in campaign contributions from sources related to for-profit colleges. This year, he received more than $20,000 from the schools and their lobby groups, according to campaign finance records. What changed? For one, the colleges have upped … Read more

Students Fight Back Against For-Profit Colleges: Westwood College Sued For Fraud

We’ve covered this topic time and time again (see Know Your For-Profit College ABC’s: Assertive, Bold and Cheeky. How I Almost Became a For-Profit College Statistic and Government Finds Fraud and Deception in Marketing for For-Profit Colleges); for-profit colleges and their deceptive practices to get students to enroll and take out loans they cannot afford. … Read more

Know Your For-Profit College ABC’s : Assertive, Bold and Cheeky. How I Almost Became a For-Profit College Statistic

In one of Steve Rhode’s latest articles he reveals the recent report from the United States Government Accountability Office’s (GOA), “Undercover Testing Finds Colleges Encouraged Fraud and Engaged in Deceptive and Questionable Marketing Practices”. Because of the billions of dollars in federal grants and loans utilized by students attending for-profit colleges, you asked us to … Read more