WASHINGTON — How did trade schools go from being mom-and-pop shops that trained mechanics and hair stylists to making billions on Wall Street? And if the industry is as predatory as the Education Department and many lawmakers suggest, why didn’t they stop it? Continue reading
SAVANNAH, Ga. — As a guarantor of student loans that specialized in collecting from students on the precipice of bankruptcy, the Educational Credit Management Corporation saw up close the “impact of students taking on debt, dropping out of school and being no better off than when they started college in terms of being able to find well-paying jobs,” according to David Hawn, the nonprofit guaranty agency’s chief executive officer. Continue reading
Corinthian Colleges, a for-profit college company, has stopped operating and closed its remaining 28 campuses, according to a statement released Monday by the company. Continue reading
WASHINGTON — The for-profit college sector filed a lawsuit Thursday that seeks to halt new regulations of its industry.
WASHINGTON — For-profit colleges that don’t produce graduates capable of paying off their student loans could soon face the wrath of the federal government.
Schools with career-oriented programs that fail to comply with the new rule being announced Thursday by the Obama administration stand to lose access to federal student-aid programs. Continue reading
Veterans coming home from Iraq and Afghanistan are enrolling at for-profit colleges and some of those companies operating on campus “appear to be taking advantage of a loophole.” That loophole lets the companies count GI Bill benefits as non-federal (non-taxpayer) money, according to a report released earlier today from Senator Tom Harkin, chairmen of the Senate Health, Education and Labor Pensions (HELP) Committee. Continue reading
For-profit Corinthian Colleges, Inc. reached a deal with the Department of Education to sell or discontinue its programs over the next six months. The deal comes after the Department of Education added a 21-day waiting period to federal student aid payments going to the company on June 12. Continue reading