Category Archives: For-profit colleges


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…


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…


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…


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…


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…


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 …


DeVry Settles Federal Lawsuit for $100 Million

DeVry University and its parent company will pay $100 million to settle a lawsuit, brought by the Federal Trade Commission, that claimed the for-profit institution had misled prospective students. A news release from the commission says the settlement “secures significant financial redress for tens of thousands of students harmed by DeVry’s conduct.”

The commission’s lawsuit, filed last January, involved advertisements that said 90 percent of DeVry’s job-seeking graduates were employed in thei…


Education Dept. Approves Sale of U. of Phoenix Owner, With Strict Conditions

The U.S. Department of Education has approved the sale of the Apollo Education Group, which owns the giant for-profit University of Phoenix, to a group of private investors, but has imposed strict conditions on the deal. The investors agreed to purchase the company this year for $1.14 billion.

The department sent a letter to the presidents of Phoenix and of Western International University, another Apollo-owned institution, outlining the terms by which it was requiring them and their new owners …


Education Dept. Denies Student-Aid Funds to 2 For-Profit Colleges

Globe University and the Minnesota School of Business, both for-profit institutions, were denied access to federal student-aid programs on Tuesday, the U.S. Department of Education said in a news release.

Globe and the Minnesota School of Business, which are commonly owned, committed fraud involving Title IV funding and were determined to be ineligible to participate in federal student-aid programs, the release said. The institutions also “knowingly misrepresented” their criminal-justice program…


Trump to Pay $25 Million to Settle Lawsuits Over ‘Trump U.’

President-elect Donald J. Trump will pay $25 million to settle a series of lawsuits over a now-defunct for-profit institution called Trump University, according to a news release issued on Friday by New York’s attorney general, Eric T. Schneiderman.

In 2013, Mr. Schneiderman’s office sued Mr. Trump’s university, saying it had misled more than 6,000 students. The students had paid up to $35,000 each for seminars and a mentorship program that promised to teach them Mr. Trump’s secrets of real-esta…