Category Archives: For-profit colleges

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Former For-Profit Lobbyist Quits Job at Education Dept.

Taylor Hansen, a former lobbyist for for-profit colleges, quit his job at the U.S. Department of Education on Friday, Bloomberg reports.

Mr. Hansen is the son of Bill Hansen, head of USA Funds, a student-loan-guarantee agency that has recently branched out into other career-education projects. The younger Mr. Hansen was one of only a few advisers to Education Secretary Betsy DeVos with experience working in higher education.

He resigned after the department announced that it would reverse an Oba…

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U.S. Gives Colleges More Time for Appeals Under Gainful-Employment Rule

The U.S. Department of Education on Monday announced that it was giving colleges more time to submit appeals regarding data that is connected to the enforcement of the Obama administration’s hotly contested gainful-employment rule.

Lynn Mahaffie, the acting assistant secretary for postsecondary education, said that the action was being taken “to allow the department to further review the GE regulations and their implementation.”

Many people have speculated that President Trump will withdraw the …

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Foundation to Buy Education Management Corp., Convert Campuses Into Nonprofits

The Dream Center Foundation, a charitable organization, will acquire the Education Management Corporation and convert its remaining campuses from for-profit status to nonprofit, according to a news release from the foundation.

The Obama administration’s heightened regulation of for-profit colleges was not kind to the once-sprawling for-profit educator known as EDMC. In 2015 the corporation reached a $95.5-million settlement with the federal government over claims that it had pressured and misled…

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Cost of Online Education May Be Higher Than We Think, Study Suggests

A study of the earnings of nearly every person who took postsecondary courses online between 1999 and 2014 finds little evidence that online education saves students or taxpayers money.

While it is often thought that online education saves money, as it requires relatively fewer resources than learning in-person on a campus, a working paper published by Caroline M. Hoxby, a professor of economics at Stanford University, has challenged this view, finding “little support for optimistic prognosticat…

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DeVry Will Pay $2.75 Million to Settle Deceptive-Advertising Claims

The DeVry Education Group will pay $2.75 million to settle allegations of “false advertising and deceptive practices” with the New York attorney general’s office, The Wall Street Journal reports.

Prosecutors said DeVry had stated falsely in marketing materials that 90 percent of its graduates looking for employment were able to find it within six months of graduating, not taking into account that many students were already employed before they enrolled or graduated, among other things.

“DeVry us…

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Leader of For-Profit College Says He Was Fired for Sheltering Homeless Student

The president of Vatterott College at Kansas City, Brian Carroll, says he was fired for offering shelter to a homeless and schizophrenic student in the library on the Missouri campus.

Mr. Carroll told a local television station that the student had run out of medication and had nowhere warm to go when the temperature fell to near zero, on January 6.

“I just didn’t want to take the chance,” Mr. Carroll said. “We had ice and snow.”

The student didn’t steal or damage property where he was staying i…

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In Shift, Education Dept. Will Automatically Forgive Student Loans Incurred at Defunct For-Profit

With one week left before its leadership changes hands, the U.S. Department of Education announced on Friday that it would automatically grant loan-debt relief to former students at the American Career Institute, a defunct for-profit college in Massachusetts. The move is a shift from how the department has so far granted relief to defrauded borrowers, requiring them to apply for it.

The department said in a news release that it would send emails to former students of the institute starting on Tu…

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Over 800 Programs Fail Education Dept.’s Gainful-Employment Rule

More than 800 programs failed the U.S. Department of Education’s accountability standards for its new gainful-employment rule, and risk losing federal student-aid funds, the department announced on Monday, and about 98 percent of those programs were offered by for-profit institutions.

To view the programs and their institutions that are subject to the standards, click here. For a sortable, searchable table showing institutions that failed the standards, click here.

Monday’s announcement represen…

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2 For-Profit Colleges Will Close Their Doors

Globe University and the Minnesota School of Business, two for-profit education providers with shared ownership, have announced that they are closing their campus in Minnesota.

“It is our goal to make sure students have options to complete their degree with us or transfer credits to another accredited institution,” said a statement on Globe’s website.

Globe said it would close its South Dakota and Wisconsin branches on December 31 and transfer them to Broadview University, a for-profit instituti…

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Education Dept. Denies Student-Aid Funds to For-Profit Law School

[Updated (12/20/2016, 5:45 p.m.) with a statement from the school's spokeswoman.]

The U.S. Department of Education will end access to federal student aid for the Charlotte School of Law, a for-profit institution, at the end of this month, the department said in a news release.

The release said that the law school was not compliant with standards set by the American Bar Association, the institution’s accreditor, and that it had violated the Higher Education Act, the department’s regulations, and …