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For-profit Higher Education

Private Student Loan Flexibility

Inside Higher Ed
October 16, 2014

Private student lenders are not doing enough to help struggling borrowers avoid default, according to a report released Thursday by the Consumer Financial Protection Bureau. That finding is part of the consumer bureau’s annual analysis of the complaints it received from the public about private student loans. The bureau reported a 38 percent increase in such complaints over the past year.

Coursera Expands Its MOOC Certificate Program

Chronicle of Higher Education
October 15, 2014

Coursera, the online education company, announced on Wednesday that it was expanding a program that awards special certificates to students who pass multiple MOOCs.

New Fodder for 90/10 Debate

Inside Higher Ed
October 14, 2014

Twenty-seven for-profit colleges last year exceeded the cap on the share of their revenue that can come from federal student loans and grants, according to annual data released Friday by the U.S. Department of Education.  The colleges violated the federal threshold known as the “90/10 rule,” which prohibits for-profit colleges from deriving more than 90 percent of their operating revenue from federal student aid money. 

Bill Seeks Oversight of Private Colleges

Albuquerque, N.M., Journal
October 14, 2014

A move by some congressional Democrats to strengthen oversight of private, for-profit colleges and universities got a boost this month when it was endorsed by 14 state attorneys general, including New Mexico’s Gary King. However, none of the state’s five-member congressional delegation, including the two Democratic senators, has signed on.

Dems Demand More Regs on For-Profit Colleges

The Hill
October 7, 2014

Democratic lawmakers are calling for more federal regulations and oversight of for-profit colleges.  Sens. Dick Durbin (D-Ill.), Tom Harkin (D-Iowa) and Rep. Elijah Cummings (D-Md.) touted the support of more than a dozen attorneys general for their Proprietary Education Oversight Coordination Improvement Act, which would allow the federal government to increase accountability standards for the colleges.

For-Profit Giant Starts Competency-Based ‘Open College’

Chronicle of Higher Education
October 5, 2014

One of the biggest for-profit college companies in the country is creating an "Open College" aimed at adults who may already have skills and experience that could qualify for college credits. The new venture, from Kaplan Higher Education, will include free online services and personalized mentoring to help people identify and organize prior experience and skills that could count toward a degree or move them closer to a new career.

Siding With For-Profit Colleges, Judge Says Rule on Recruiter Pay Is Flawed

Chronicle of Higher Education
October 3, 2014

A federal judge has sided with for-profit colleges in a lawsuit over an Education Department rule limiting the commissions colleges can pay to student recruiters, agreeing that the agency failed to justify parts of the rule.  The ruling, by Judge Rosemary M. Collyer of the U.S. District Court for the District of Columbia, is the latest wrinkle in a long-running fight between the Association of Private Sector Colleges and Universities and the department over the "incentive compensation" rule.

Ranking and Networking

Inside Higher Ed
October 2, 2014

LinkedIn has officially joined the jam-packed college rankings party. And with 313 million users, the job networking site has a big data sample both for creating the rankings and for marketing them.

The For-Profit College That's Too Big to Fail

Bloomberg Businessweek
September 29, 2014

Usually, when a school closes, the Education Department tries to find other programs to accept the students and the credits they’ve earned. But the size of Corinthian’s student body means it’s hard if not impossible to find enough places at other for-profit or community colleges. That creates a problem for the government, which must forgive loans for students who don’t transfer to other institutions. In the case of a school as large as Corinthian, that provision could cost taxpayers millions of dollars.

Private College Grads: Unemployed and in Debt

Washington Post - Commentary
September 28, 2014

For-profit colleges can’t get no respect, at least not from employers. Which suggests that maybe they should be getting less generous taxpayer subsidies, too. For-profit schools — ranging from monolithic online chains like the University of Phoenix to smaller, fly-by-night operations that advertise on the subway — enroll about 12 percent of college students nationally. Yet they account for nearly four times that share of student-loan defaults, according to newly released federal data.