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For-profit Higher Education

In Court, For-Profit Colleges Demand End to Gainful Employment Rule

Huffington Post - Opinion Piece
May 20, 2015

David Halperin writes: The big for-profit colleges were back in court in Washington again this morning, arguing to a federal judge that the Obama Administration did not have the power to subject them to even the most minimal standards of accountability for leaving their students with overwhelming debt.

Fake Diplomas, Real Cash: Pakistani Company Axact Reaps Millions

New York Times
May 17, 2015

Axact does sell some software applications. But according to former insiders, company records and a detailed analysis of its websites, Axact’s main business has been to take the centuries-old scam of selling fake academic degrees and turn it into an Internet-era scheme on a global scale.

As Concern Over Student-Loan Servicers Grows, a Watchdog Steps Up Scrutiny

Chronicle of Higher Education
May 14, 2015

The nation’s top consumer watchdog is stepping up its oversight of student-loan servicers, the agency announced on Thursday. The Consumer Financial Protection Bureau, which has been monitoring the sector since last March, said it would seek information on practices that "create repayment challenges" or set up "hurdles for distressed borrowers." The agency is also interested in "economic incentives that may affect the quality of service" provided to borrowers, it said in a statement.

SEC Says For-profit ITT College Executives Engaged in Fraud

Los Angeles Times
May 13, 2015

The U.S. Securities and Exchange Commission levied fraud allegations Tuesday against a major for-profit college company, accusing ITT Educational Services Inc. of hiding the “extraordinary failure” of two student loan programs from investors.

Can For-Profit Colleges Survive Their Slump?

May 8, 2015

The dramatic collapse of Corinthian Colleges isn’t the only shake-up happening in for-profit higher education, as a broad swath of the sector is shutting down or selling off campuses after years of declining revenue and enrollment.  On Wednesday two of the largest publicly traded for-profits announced substantial cuts: Education Management Corporation (EDMC) said it would gradually phase out 15 of 52 campus locations of the Art Institutes, while Career Education Corp. unveiled a broader restructuring, saying it will close or sell everything but its Colorado Technical University and American InterContinental University holdings. 

Obama Administration Improperly Denies Student Loan Debt Relief

Huffington Post
May 8, 2015

This week, the National Consumer Law Center published a denial letter received by an unnamed borrower also represented by the New York legal group. Except the denial wasn’t from one of the Education Department’s heavily criticized loan contractors; it was from the department itself. In it, the department’s Default Resolution Group told the borrower that she is responsible for repaying the debt despite her claims. There’s no mention of the evidence she provided to support her claim, or her references to state and federal law. Dwight Vigna leads the Education Department’s default group, which government investigators have routinely criticized.

Vanishing Profit, and Campuses

Inside Higher Ed
May 7, 2015

On Wednesday two of the largest publicly traded for-profits announced substantial cuts. Education Management Corporation (EDMC) said it would gradually phase out 15 of 52 campus locations of the Art Institutes, which is one of the better known brands among for-profits. Roughly 5,400 students attend the closing campuses.

Forgiving Student Debt at Corinthian Colleges and Other For-Profits

New York Times - Debate
May 7, 2015

Loan relief for students could cost taxpayers millions of dollars, and establish a precedent for other students unhappy with their college degree. Who deserves debt forgiveness when for-profit colleges close or are accused of fraud?

U.S. Eyes New Path to Debt Relief

Inside Higher Ed
May 6, 2015

The unprecedented collapse and now bankruptcy of Corinthian Colleges has left in its wake a large political battle over student debt relief. At the center of the storm is the U.S. Department of Education, which is now deciding how to structure a debt relief process. Its decisions are likely to have long-term implications for student loan borrowers regardless of whether they attended Corinthian institutions. Here’s an explanation of some of the moving parts to Education Department debt relief.

Debt Relief Battle Continues

Inside Higher Ed
May 5, 2015

Corinthian Colleges’ declaration of bankruptcy on Monday finalizes the for-profit college’s unprecedented collapse that has morphed into a political firestorm for the Obama administration -- which U.S. Department of Education officials are racing to extinguish.