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 …
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 …
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. …
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 …
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 …
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 …
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 …
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, …
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. …
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 …