for-profit colleges

11 Stories

Defrauded Students Getting Debt Relief—25 Years Later

Government settles lawsuit filed by students of shuttered for-profit college

(Newser) - One of the largest for-profit college chains in the US was shuttered in 1994 after federal investigations revealed it had defrauded thousands of students by falsely certifying them for federal loans. Ever since, the US government has been collecting on federal student loan debt left behind by students of Wilfred... More »

DeVry Can't Prove Its 'Since 1975' Graduation Claim

Department of Education reaches settlement agreement with university

(Newser) - DeVry University's ads are about to get an overhaul. That's because the school's oft-touted claim that since 1975, 90% of its graduates looking for employment found jobs in their field within six months actually has no basis in fact, according to the Department of Education. The university... More »

ITT Laid Off 8K Employees, Now They're Suing

They say ITT legally owed them 60 days' notice

(Newser) - ITT Technical Institute laid off 8,000 employees when it suddenly announced the closure of its 130 or so campuses Tuesday. That same day, two of its abruptly unemployed workers filed what they hope will be a class-action lawsuit against the for-profit school, the Wall Street Journal reports. The plaintiffs,... More »

For-Profit School ITT Tech Shuts Down After Penalties

Chain could no longer take students who use federal financial aid

(Newser) - The for-profit college chain ITT Educational Services is shutting down its campuses days after the US Department of Education banned it from enrolling new students who use federal financial aid, reports the AP . The company, which operates vocational schools, announced "with profound regret" in a statement Tuesday that it... More »

FTC Sues DeVry University, Claims It Misled Students

FTC chair says some grads end up working as delivery drivers

(Newser) - Another large for-profit college is under government scrutiny—this time, it's DeVry University. The FTC on Wednesday sued DeVry, alleging that it misled consumers about students' job and earnings prospects. Illinois-based DeVry has more than 55 campuses across the country and offers online or on-campus degree programs in... More »

Claims of Fraud Could Get Student Loans Forgiven

More than 7.5K former students say their colleges defrauded them

(Newser) - Over the past six months, more than 7,500 Americans have applied to have their cumulative $164 million in student loans forgiven, claiming their colleges defrauded them, the Wall Street Journal reports. And as Gawker clarifies: "We are not talking here about the stereotypical 'Oberlin art history major... More »

16K Students Learn Their College Is No More

Corinthian Colleges will shut down its remaining 28 campuses

(Newser) - Corinthian Colleges will shut down its remaining 28 campuses, displacing about 16,000 students, less than two weeks after the Department of Education announced it was fining the for-profit institution $30 million for misrepresentation. Corinthian was one of the country's largest for-profit educational institutions , and NBC News reports the... More »

Senate Report: For-Profit Colleges 'Abysmal'

Republicans, industry, say findings are biased

(Newser) - Private, for-profit colleges are gorging themselves on federal cash while spending little to ensure a quality education for their students, who are dropping out in droves, Democrats on the Senate's education committee declared in a report yesterday. The report found that more than half the students at the 30... More »

Student Loans Cripple Entire Generation

Nation's economy creaks under $1T in student loan debt

(Newser) - Wannabe college students have a lot to prepare for: all-night study binges, grueling exams, and the three jobs they'll need to pay off their crippling student debt. What's worse, that financial burden is only growing, the New York Times reports. Today, just 38% of the nation's $1... More »

Grads of For-Profit Schools Have Debt Trouble

Many leave unable to pay

(Newser) - The DOE has released loan-repayment numbers for 8,000 American colleges and universities showing that graduates of for-profit schools face bigger debt loads than their counterparts at nonprofit and public schools; and they are less likely to repay their loans, reports . Read the full article . More »

Fake 'Obama Mom' Ads Dupe Students

They're similar to ploys used to hawk subprime loans

(Newser) - Pro Publica sheds light on a particularly scummy practice all the rage on the Internet designed to sucker low-income single mothers: So-called "Obama mom" ads are springing up all over promising mothers that the president wants them to return to school so badly he's created special federal loans... More »

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