The U.S. Department of Education this hour has released the first round of measures under its new gainful employment rule, which tests which career college programs, though a combination of high prices and low quality, leave too many of their graduates with overwhelming student loan debt.
Kaplan has been receiving as much as $1.5 billion annually in taxpayer-funded federal student aid. But students across the country have complained that Kaplan has engaged in deceptive or coercive recruiting.
Screw-ups at the Department of Education could derail Obama's plan to clean up dodgy for-profit colleges.
I was just alerted to this gem of a tantrum / press release issued two weeks ago by the for-profit college trade association APSCU, whose strategy of aggressive, expensive lobbying and litigation has utterly failed, and which now has lost much of its funding.
A three-judge panel of the U.S. Court of Appeals in Washington DC rejected the for-profit college trade group's challenge to the Obama Administration's gainful employment rule, a regulation that holds career training programs accountable for consistently leaving students with overwhelming debt.
The Republican ex-congressman who now works as the chief lobbyist for the troubled for-profit college industry has ushered in the new year with an email asking for-profit college owners to finance a legal brief aimed at limiting the legal risk of companies in fraud cases.
The rule, which went into effect on July 1 of this year, is designed to reveal programs that carry high levels of student debt while yielding relatively subpar job credentials.
Some of the largest for-profit college companies -- including, last month, DeVry and Kaplan -- have recently left the industry's main trade group. Funded to boost its industry's fortunes, APSCU may instead have contributed to dragging the industry down. Now APSCU itself may be a sinking ship.
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.
The complaint repeats many of the claims from APSCU's suit to strike down the 2011 gainful employment rule: that the DOE didn't have the authority to issue such a rule; that the Department has not provided a reasoned basis for the rule; and that the rule is "unlawful, arbitrary, and irrational."
Past efforts to hold schools accountable by increasing transparency around their net tuition prices or the fate of their
The administration had the opportunity, through a strong gainful employment rule, to demand here and now that federal aid only go to career education programs that were truly helping their students. It didn't seize the chance.
It's a critical moment for the public to take another close look at this industry, which now has 13 percent of all U.S. college students and swallows more than a quarter of federal aid -- over $30 billion a year in taxpayer money. It's also a critical moment for President Obama to stand up for fiscal responsibility.
"There are a lot of questions about how straightforward the Education Department is being with students about the situation
What is striking is that APSCU not only demanded a super-sized contingent of for-profit college representatives on the panel but also proposed for membership some of the most abusive for-profit college companies.
Companies in your sector and your trade association are opposing a rule that would motivate career colleges to provide higher quality programs, at more affordable prices. Your opposition to the gainful employment rule is hurting students, taxpayers, and our economy.
Bush, a potential 2016 presidential candidate, has styled himself a champion of K-12 education policy reforms. But in the context of higher education, Bush seems less interested in holding poorly-performing schools accountable.
A librarian at a southern California campus of Everest College abruptly resigned last week, deeply upset that the for-profit school had admitted into its criminal justice program a 37-year-old man who appears to read at a third-grade level.