Category Archives: Accountability standards

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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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Consumer Financial Protection Bureau Sues Nation’s Largest Student-Loan Servicer

The Consumer Financial Protection Bureau is suing Navient, the country’s largest servicer of federal and private student loans, for failing borrowers during every stage of repayment, the federal agency said on Wednesday in a news release.

In the lawsuit, which seeks undisclosed damages, the bureau states that Navient violated the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Fair Credit Reporting Act, and the Fair Debt Collections Practices Act.

Navient provided borrowers with b…

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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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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 …

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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…

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U. of Louisville Foundation Broke Its Own Bylaws, State Audit Finds

A former president of the University of Louisville Foundation broke several of its bylaws, acted without consulting its Board of Trustees, and fostered a “dysfunctional governing environment,” according to a Kentucky audit whose report was released on Wednesday.

James R. Ramsey, a former president of the University of Louisville, was also president of the university’s foundation. He stepped down from both positions this year, after Kentucky’s governor sought to radically restructure the universi…

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Education Dept. Upholds Revoking of Embattled Accreditor’s Recognition

John B. King Jr., the secretary of education, on Monday upheld the U.S. Department of Education’s decision to revoke the federal recognition of the Accrediting Council for Independent Colleges and Schools, an agency that had accredited for-profit colleges that suffered recent high-profile collapses.

The department revoked the accreditor’s recognition in September, after it was accused of lax oversight in its accreditation of two now-defunct for-profit educators, ITT Educational Services Inc. and…

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Virginia Foxx Is House GOP’s Choice to Lead Education Committee

Rep. Virginia A. Foxx, a North Carolina Republican who just won election to her seventh term in Congress, was named on Friday as the new chairwoman of the House Committee on Education and the Workforce, the main policy-making panel for higher education in the chamber.

Ms. Foxx, who has led the panel’s higher-education subcommittee since 2010, will take over the committee’s leadership in January, when the 115th Congress convenes, a session that may see major changes in higher-education policy. Sh…

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Colorado Heights U. Will Close After Accreditor Loses Recognition

Colorado Heights University, a nonprofit institution in Denver, will close next year, The Denver Post reports.

The announcement follows the U.S. Department of Education’s denial of recognition to the Accrediting Council for Independent Colleges and Schools, the university’s accreditor. Declining enrollment also played a role in the decision to close, the Post reports.

Colorado Heights said in a statement that about 400 of its 500 students were expected to graduate from the institution, and that …

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Education Dept. Settles With DeVry Over Job-Placement Claims

The U.S. Department of Education has settled with DeVry University, a subsidiary of the for-profit DeVry Education Group, after the institution put unsubstantiated job-placement claims in its recruitment materials, the department announced in a news release on Thursday.

In 2015, DeVry could not provide data or further information on the assertion that since 1975, 90 percent of graduates had found jobs in their field within six months of graduation, the release said. According to federal law, ins…