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  4. for-Profit mar2017

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    For those that draw the line in the sand at $5.00 for a “penny stock,” Aspen Group, Inc. (OTCQB:ASPU) may be able to graduate out of penny-stock-land soon. Trading as low as $1.52 last July (and $1.21 in January 2016), the company has found a solid uptrend to tip the scales at $4.44 in December for its current 52-week high. After a pullback from that high, shares are moving up again, including a 7.7% climb in morning trading to $4.04 on Friday. Shares are being driven by the New York City-based post-secondary education company issuing two substantial pieces of news after Thursday’s closing bell. First, in the third quarter of fiscal 2017 (ended January 31, 2017), Aspen reported revenue of $3.74 million, up 73% from the year prior quarter. The company swung to a profit, with net earnings of $7,377 versus a net loss of $689,718 a year earlier. Aspen also had a record number 825 new student enrollments during the latest quarter, a 50% year-over-year increase. Separately, the company said it signed a letter of intent to acquire an unnamed regionally accredited for-profit university based in California for $9.0 million. Payment will come in the form of $2.5 million in cash, $2.0 million in convertible debt and $4.5 million in ASPU common stock. $900,000 of the $2.5 million cash component will be lent to a newly-formed entity controlled by the loan’s guarantor who owns 100% of the voting power of the university.
    7 years ago by @prophe
     
      Mar2017USAEnglishfor-profit
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      Dive Brief: Career training programs will have until July 1 to appeal the U.S. Department of Education for reconsideration of compliance under current gainful employment and revenue reporting guidance enacted by the Obama administration, a signal that the Trump administration is holding to promises of massive deregulation in the federal education agency. The extended review period will allow schools the chance to prove they were unfairly assessed in previous years, under rules requiring that graduates' loan payments do not exceed 20% of their discretionary income or 8% of total earnings, metrics that many for-profit college advocates say was an unfair rule designed to disrupt for-profit impact in higher education. For-profit leaders applauded the extension, but opponents say the delays will allow more students to potentially be defrauded by predatory recruitment schemes and false information about postgraduate outcomes. Dive Insight: The extended review of the gainful employment policies will have impact throughout the higher education sector, as community colleges and schools which disproportionately serve poorer students will now have time to provide more context about graduation rates and employment outcomes which previously may not have been possible due to time constraints. Additionally, the extension signals the first sign of regulatory repeals for higher education, one of the only signature details of President Trump's higher education platform during the campaign season, and a recurring theme shared by Congressional higher education leaders. For most institutions, this is a positive sign towards reducing costs and manpower committed to compliance efforts, but for smaller institutions with missions to serve underrepresented populations, it may be a lifeline.
      7 years ago by @prophe
       
        Mar2017for-profitDepartment_of_EducationDonald_Trumpgainful_employmentdelayedEnglishObama
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        Many for-profit colleges are accused of broken promises, high prices and not preparing students for the workforce. The federal government has increased its regulation of them. It's sparking a big debate in Washington, and two of the main players are North Carolina politicians. The new chair of the U.S. House Committee on Education and the Workforce, U.S. Rep. Virginia Foxx (R-- N.C., District 5) already said the rules need to go. The way she sees it, the Obama administration "intentionally targeted and sought to dismantle career colleges and universities with unnecessary regulations." She praised for-profit schools, calling them "responsive higher learning institutions." Action 9 investigator Jason Stoogenke found her biggest donor is a for-profit college, Full Sail. Full Sail is based in Florida and focuses on entertainment and media, offering degrees up to master's. When Stoogenke asked Foxx whether that's a conflict of interest, she emailed, "When an individual or industry offers me their support, they're endorsing my views, not the other way around." On the other side, 18 attorneys general, including North Carolina's Josh Stein, are urging the federal government not to go easy on for-profit schools. They sent the federal government a letter, saying undoing the regulations would mean "open season" on students. "We're very concerned," he said. "They're preying on people's dreams." LETTER When students can't pay back debt, taxpayers get stuck with the bill. Some wonder how much debt students rack up at for-profit colleges. The Brookings Institution created a list of 25 colleges where students are the most in debt. More than half are for-profit schools. Charlotte School of Law, DeVry, ITT Tech, Brookstone and Kaplan have all had problems in recent years, either financial, legal, or both. "It's been really hard," Charlotte Law student Stefanie Quinde said. "I understand it's a business. But at end of day, the interest of the students, it's, it's a big priority." "I think the regulat
        7 years ago by @prophe
         
          Mar2017for-profitArizonadebateEnglish
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          The Trump administration is delaying implementation of one of the signature policies of the Obama-era crackdown on for-profit colleges. The Department of Education announced Monday night it was targeting the Obama administration rule aimed at holding career-training programs accountable for getting students decent jobs and earnings. To be in compliance with the regulations, career-training programs, which are largely at for-profit colleges, need to graduate students whose loan payments don’t exceed 20% of their discretionary income or 8% of their total earnings. Programs that don’t fit this criteria for multiple years could lose access to federal financial aid. Career-training schools will now have until July 1 to file appeals to the program debt-to-earnings ratios published by the Department earlier this year, as part of the enforcement of the gainful employment (GE) rule. Originally, their appeals were due Friday, March 10. The schools will also now have until July 1 to publish disclosures about their debt-to-earnings ratio that are required by the new law. Before this decision, the programs had until April 3 to post those disclosures. The gainful employment rules were a long fought victory for the Obama administration in its quest to crack down on for-profit colleges, which officials and advocates have accused of loading students up with high debt loads for questionable outcomes. The for-profit college industry fought the regulations in court and the Obama administration ultimately prevailed. But the Trump administration’s embrace of an increased role for the private sector in education has had supporters of efforts to crack down on for-profit colleges worried that the new rules could be in jeopardy — and investors betting on for-profit schools. The delay is the first signal that that speculation may be correct. “This is a sign that does nothing to dispel concerns that this administration will be sufficiently aggressive in protecting students,” said Ben Miller, the senior director of postsecondary educati
          7 years ago by @prophe
           
            Mar2017Donald_TrumpObamafor-profitdelayedUSAEnglish
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            The UK government will decide whether BPP University should continue to be eligible for university title and degree-awarding powers, after its US owner was sold to a private equity consortium for $1.1 billion (£899 million). BPP, one of only three for-profit universities in the UK, saw the sale of its owner, Apollo Education Group, completed last month. The deal, which takes the company private, also includes its big US for-profit institutions, such as the University of Phoenix and Western International University. The new owners are a consortium including Vistria Group, a private equity firm run by Marty Nesbitt – a Chicago businessman sometimes described as Barack Obama’s best friend – and former US deputy education secretary Tony Miller. The consortium also includes “funds affiliated” with private equity firm Apollo Global Management, according to the Washington Post. The change of ownership for BPP comes as the UK government nears the final stages of steering through Parliament the Higher Education and Research Bill, which aims to further open England’s sector to new private and for-profit providers. While ministers believe that new providers are needed to introduce greater competition for established universities, critics believe creating more for-profit universities that can go through repeated changes in ownership may have an impact on quality for students. An independent review of BPP will now be submitted to the Higher Education Funding Council for England, including checks on whether the institution continues to meet student number and governance requirements. Hefce will, in turn, advise the Department for Education on the institution's future status. Carl Lygo, BPP's vice-chancellor, said that "nothing has changed" at the university since the sale was announced. "Neither of the new owners has any record in delivering higher education in the UK and so their plans will be carefully scrutinised by the Department for Education," Professor Lygo said. "This is not a rubber stamp process." A DfE spok
            7 years ago by @prophe
             
              Mar2017UKEnglishstatusBPPfor-profit
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              According to a Chronicle analysis of data released on Tuesday, 177 private colleges that grant degrees failed a U.S. Education Department test for financial responsibility in the 2014-15 academic year. That’s 18 more than the previous year. Of the institutions that failed, 112 are nonprofit, and the remaining 65 are for-profit. In the previous year, 93 of the 159 failing institutions were nonprofit. The department considers an institution’s debt and assets, among other factors, in giving it a score ranging from -1 to 3. Scores lower than 1.5 are considered failing. The department’s methodology in devising the scores has drawn sharp criticism in the past from some higher-education groups. The latest scores cover the institutions for fiscal years ending between July 1, 2014, and June 30, 2015. Several of the colleges have closed since the 2014-15 academic year. Some, like Dowling College, in Oakdale, N.Y., previously failed the financial-responsibility test, while others, like Saint Joseph’s College, in Rensselaer, Ind., passed it.
              7 years ago by @prophe
               
                for-profitUSAMar2017EnglishDepartment_of_EducationFinancial
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                The secretary of Wisconsin’s Department of Safety and Professional Services sought to reassure the state’s for-profit college oversight board Tuesday that a proposal to shift responsibility for regulating those schools to her agency would not weaken supervision of the industry. But members of the Educational Approval Board were skeptical of whether the state department would have the expertise to scrutinize for-profit schools and protect their students, and voted to oppose the plan in Gov. Scott Walker’s budget. “If it’s not broken, don’t fix it,” board chairman Don Madelung said. “We’re not broken.” Walker’s proposal would eliminate the agency’s board and shift its staffers’ jobs to DSPS. Speaking to EAB members, DSPS officials pitched the move as a way to complement the agency’s efforts by maintaining its 6½ full-time staff positions and pairing them with the larger department’s legal counsel, investigators, consumer complaint division and other resources. “If the EAB does go away, nothing else would,” Secretary Laura Gutierrez said. “I don’t think the regulations, I don’t think your best practices (or) the way you do business would go away. “We would be protecting the students, and that would be our focus.” Consumer advocates and government regulators have been critical of the for-profit college industry, saying some of its schools use misleading marketing and offer expensive programs that are of questionable value to graduates on the job market. After facing increased scrutiny during the Obama administration, experts anticipate for-profit schools will experience less federal oversight under President Donald Trump, which could make the role of state regulators more significant. Walker advanced a similar plan two years ago to shutter the EAB, which legislators later removed from the budget — something Madelung praised Tuesday as “common sense.” Unlike the proposal Walker announced this year, that plan would have consolidated the work of the EAB’s staff and board into a single part-time employee. Sti
                7 years ago by @prophe
                 
                  Mar2017USAEnglishWisconsinfor-profit
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                  The Trump administration has taken its first shot at rules designed to protect students from expensive, low-quality colleges and career training programs. Less than a month after Betsy DeVos was sworn in as its top official, the U.S. Department of Education announced Monday evening that it would delay until July 1 an effort to crack down on career training programs that load students up with unpayable debt. The biggest winners: the more than 800 higher educational programs that claim to lead to “gainful employment” but flunked the department’s January excessive debt test—mostly for-profit art and cosmetology schools. These programs can now continue to recruit applicants (at least until July 1) without having to warn them about alumni’s oppressively high debt loads. The schools can also take this extra time to seek data showing that their graduates’ student loan bills are actually below the official “excessive debt” cutoff. That means bills must be no more than 12% of the average student’s gross earnings, as reported to the Social Security Administration, and no more than 30% of their discretionary income. That means, for example, that students considering entering, say, the Art Institute of Pittsburgh’s two-year Associate’s program in graphic design won’t necessarily be warned that the typical graduate of the program has taken on about $40,000 in debt, but finds a job paying only about $22,000 a year. The monthly financial reality for such graduates is grim. Their before-tax monthly salary works out to about $1,900. The monthly payments on a standard 10-year student loan repayment plan top $400 – or more than 20% of their gross earnings. The department said it would use the extra time to “further review the [Gainful Employment] regulations and their implementation.” The action puts the brakes on one of many last-minute moves by the Obama administration. In January, the Department of Education issued an analysis of the earnings and student debt levels of more than 8,600 higher education programs that offer pr
                  7 years ago by @prophe
                   
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                    Current higher education policy in England is based on “bad pub economics” and ministers have failed to learn the lessons from international developments, according to a leading academic. Lorraine Dearden, professor of economics at the UCL Institute of Education and research fellow in education at the Institute for Fiscal Studies, lamented England’s 2012 trebling of fees to £9,000 and current plans in the Higher Education and Research Bill to ease the entry of new private providers as being driven by a desire to create competition. "There are very, very good economic reasons why the market alone cannot be allowed to operate in higher education,” said Professor Dearden in a keynote speech at the Central for Global Higher Education’s annual conference in London on 1 March. She cited “credit market failures” for student lending that means government has to provide loans, the fact that higher education brings “social returns” as well as private returns, “risk and uncertainty” caused by student reluctance to borrow, and “information problems” that mean prospective students cannot know the costs and benefits of their higher education until much later in life. The government’s misguided notion that price competition between universities would occur under the £9,000 cap – when in reality all have ended up charging the maximum – was “bad pub economics”, Professor Dearden said. The £9,000 fees policy failed to take into account the fact that income-contingent loans meant the repayment risk from higher fees was borne by government rather than universities or students, she added. “If you want to allow a range of fees, what is important is that the higher education institutions need to share some of the risk of non-repayment,” she continued. That would mean a system that better reflects the “true costs and benefits” of courses, Professor Dearden said. She added that there were currently “lots of economists trying to work out” how to ensure that universities “have skin in the game”. Professor Dearden also accused Jo Jo
                    7 years ago by @prophe
                     
                      for-profitUKEnglishMar2017entranceban
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                      The Trump administration just handed an olive branch to the battered industry. he Trump administration appears poised to undo one of its predecessor’s most ambitious attempts to rein in for-profit college rapacity. The Department of Education is delaying the so-called “gainful employment” rule, in place since 2015, the Wall Street Journal’s Josh Mitchell reports. Under the Obama-era rule, the Department of Education would shut off the financial-aid spigot for higher education institutions if their typical graduate reported spending more than 30 percent of after-tax cash or 12 percent of total income on student loan payments. In other words, if a college saddles too many of its students with debt and shabby job prospects — if graduating classes debt-to-income ratios don’t look good for a few consecutive years — it will be barred from receiving Stafford loans, Pell grants, and other forms of taxpayer funding for higher education. The more than 800 schools that the Department of Education threatened in January with sanctions under the rule—98 percent of which are for-profit institutions like Full Sail University and University of Phoenix — will now have until July 1st to hire independent auditors to investigate whether the government’s damning data on their students career outcomes is wrong or flawed. Since most for-profit colleges derive most of their revenue from students’ federal financial aid packages, thousands of the schools may have eventually had to close their doors without reconsideration by the Department. The extended timeline to appeal, and the department’s promise to review the rule, could be a lifeline for an industry that was facing an unprecedented crackdown via states attorneys general lawsuits and federal enforcement actions. But, as Pacific Standard reported in 2015, this wouldn’t be the first time the industry has bounced back from a regulatory beating. For-profit college parent companies stocks have surged since Donald Trump’s election in November. Now, shareholder faith looks like it could g
                      7 years ago by @prophe
                       
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                        President Trump’s postelection agreement to pay $25 million appeared to settle the fraud claims arising from his defunct for-profit education venture, Trump University. But a former student is now asking to opt out of the settlement, a move that, if permitted, could put the deal in jeopardy. Lawyers for the student, Sherri Simpson of Fort Lauderdale, Fla., on Monday asked a federal judge in San Diego to reject the settlement unless former students are given an opportunity to be excluded from the deal so they can sue Mr. Trump individually. If the judge, Gonzalo Curiel, decides that Ms. Simpson and potentially others should have that chance, legal experts say it could disrupt the settlement because Mr. Trump and his lawyers saw the deal as a way to resolve all of the claims, once and for all, to avoid a trial and distractions to his presidency. “If even one person could opt out of the settlement and force a trial, that might, in fact, crater the deal,” said Shaun Martin, a professor at the University of San Diego School of Law. “I’m sure Judge Curiel will be aware of that.” The agreement, announced in November, appeared to resolve years of hotly contested litigation, including two federal class-action cases in San Diego and a separate suit by Eric T. Schneiderman, the New York attorney general. Students maintained that they were cheated out of tuition through high-pressure sales tactics and misleading claims about what they would learn. At one point during the contentious case, Mr. Trump questioned Judge Curiel’s impartiality based on his Mexican heritage. Mr. Trump, who has rejected the claims and did not acknowledge fault in the settlement, posted on Twitter after the settlement announcement that he “did not have the time to go through a long but winning trial on Trump U.” Patrick Coughlin, a lawyer representing the class-action plaintiffs, said that it was a “terrific settlement” and that the objection seemed “politically motivated.” He said he feared that the objection could result in delays for students
                        7 years ago by @prophe
                         
                          Donald_TrumpMar2017closuresuefor-profitUSAEnglish
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                          Buoyed by the ascendancy of Donald Trump, America’s predatory for-profit colleges are renewing their multi-front fight to destroy a key measure to hold them accountable: the gainful employment rule. The new battle plan includes pushes in Congress and before the Betsy DeVos Department of Education, plus two new lawsuits aimed at the regulation, including one, in Arizona, that has not been previously reported. It looks like this harmful effort is rapidly gaining traction. It took the Obama administration nearly eight years of battling well-paid for-profit college lobbyists and lawyers to finally enact and implement this regulation, which has a simple, common sense premise: Career training programs that, year-after-year, leave graduates mired in overwhelming debt should lose eligibility for taxpayer-funded student grants and loans. Career education should make people financially better off, not worse off, and the rule aims to channel money away from programs that do harm — and channel it toward those honest, effective colleges that are genuinely helping students build careers. For decades, many for-profit colleges, through a toxic mix of high prices, low quality, and weak job placement, have promised more than they could deliver, and yet have been getting billions annually in federal aid, much of it spent on advertising and profits, rather than education. Many veterans, single moms, displaced factory workers and miners, and others struggling to build a better future have been deceived and abused by unscrupulous college owners, whose offices are in Wall Street suites as well as strip malls. The final gainful employment rule does not demand much; only the worst programs flunk its test comparing graduate earnings with debt levels. The first round of results, reported in January, showed that 98 percent of the flunking programs were at for-profit colleges. The for-profit colleges have never stopped trying to overturn the rule, even after federal courts decisively rejected two separate industry lawsuits. Now, however,
                          7 years ago by @prophe
                           
                            Mar2017for-profitDonald_TrumpObamaUSAEnglish
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                            I’m working with a client to help fill a management level position, and last week we interviewed an applicant with three degrees from a for-profit university. As college degrees become more important for both hiring and advancement, these for-profit educational institutions are growing in number and presence. For-profit schools are just that — businesses. They are corporations, often with shareholders, that have the objective of making a profit. Education is their product. If you’re thinking about going back to school, here are some things to consider before you commit your time or your money to these businesses. Consider your objective. If you want a technical skill, the for-profit route may be for you. Most of these schools do not have entrance requirements. Money and a high school diploma or its equivalent will get you a seat in the program. If you want a college education, consider that the for-profit degrees come with limits. Credits for your work may not transfer to other programs. A bachelor of science degree may not qualify you to move into a graduate program with another school. Most employers will give preference to a candidate with a degree from a traditional university. And if you’re thinking about an advanced degree that will allow you to teach at the university level, don’t even consider the for-profit route. If your objective is flexibility, remember that many traditional universities are now offering online classes and flexible scheduling. Pay attention to accreditation. Accreditation for the university AND for specific programs is a big deal. Learn what accreditation means. Know what the standard of excellence is. Lack of appropriate accreditation may mean your degree is worth very little. Pay attention to cost. Congress is now involved in investigating the costs of for-profit schools. Many state schools are now offering online, evening and weekend programs for much less money. For example, the Georgia WebMBA program is a fully online 18-month master’s program offered through a consortium of
                            7 years ago by @prophe
                             
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                              President Donald Trump’s administration has begun relaxing restrictions on for-profit colleges, and traders in shares of companies like Strayer Education Inc. (STRA) and Capella Education Co. (CPLA) have taken note. For-profit college stocks soared in the week after the Department of Education announced a delay in the implementation of a regulation finalized in October 2014 by former President Barack Obama. Shares of Strayer Education, a holding company for Strayer University, climbed 2.5 percent in the week following the March 6 announcement, hitting a high of $81.40 shortly after Monday market open, while Capella Education, the parent of Capella University, grew 1.8 percent over the same period, surpassing $78 Monday morning. Grand Canyon Education Inc. (LOPE), the parent of Grand Canyon University, rose 3.5 percent over the past week to an all-time high of $67.49, and Laureate Education Inc. (LAUR), which counts Walden University as one of its for-profit institutions and was formerly known as Sylvan Learning Systems, saw its shares rise 0.6 percent to nearly $13 Monday. DeVry Education Group Inc. (DV), known for its DeVry University, saw a more modest 0.4 percent rise over the past week. The Department of Education initially required for-profit colleges, along with some nonprofit and public schools, to report data on the success of their job training programs by April 3, but under new Education Secretary Betsy DeVos, the date was pushed to July 1. The rule, which was originally slated for implementation on July 1, 2015, would cut back on federal funding for institutions whose programs did not lead to "gainful employment"— meaning graduates’ annual loan payments exceeded 20 percent of their income. For-profit colleges, whose attendees tend to be disproportionately female, minority and low-income, have long faced criticism for their role in the student debt crisis. Data released from the Department of Education in September linked more than 35 percent of student debt defaults in 2013 to the institutions, des
                              7 years ago by @prophe
                               
                                Donald_TrumpObamafor-profitdelayedMar2017USAEnglish
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                                Comeback of for-profit medical schools brings questions of reputation, quality of education After nearly a century of dormancy, for-profit medical schools are making a return in the United States. A recent paper by University researchers analyzed the history, reappearance and possible effects that these schools could have on medical education. Though at one time for-profit medical schools existed in the United States, this changed with the publishing of Abraham Flexner’s 1910 report on the state of these schools, according to the paper. There were numerous critiques of these schools in Flexner’s report, particularly of the standards, requirements, teaching and students’ clinical and research exposure. The report led to a renovation of medical teaching and the subsequent disappearance of for-profit institutions. The medical education system accepted nearly all students who could afford to pay tuition prior to 1910, Gruppuso said. “There was no standardized set of requirements for medical schools, and it was creating a real crisis in terms of quality for medical care.” In 1996, the court case United States v. American Bar Association made it possible for for-profit law schools to be established, according to the paper. Though the Liaison Committee on Medical Education had previously been opposed to for-profit medical schools, they slowly began to change their opinions after the court case and eventually allowed for for-profit medical schools to be established in 2013. According to the paper, a number of investor-owned schools, such as the Rocky Vista University College of Osteopathic Medicine, have been accredited, and more have received preliminary and provisional accreditation. Philip Gruppuso, professor of pediatrics and an author of the paper, said the main point of the article was to bring both the existence and establishment of these for-profit schools to public attention. “(This article) sheds light on the fact that not all medical schools in the United States are nonprofit institutions, so I’m not
                                7 years ago by @prophe
                                 
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                                  Senate Democrats want Education Secretary Betsy DeVos to explain why she’s delaying the implementation of an Obama-era rule aimed at ensuring career-training programs, specifically those at for-profit colleges, actually prepare students for good-paying jobs. In a letter to DeVos this week, Sens. Dick Durbin (Ill.), Patty Murray (Wash.) and Elizabeth Warren (Mass.) called the department’s gainful employment rule a critical protection for both students and taxpayers. On Jan. 9, the department released final debt-to-earning rates for career training programs required by the rule finalized under Obama in October 2014. Under the rule, the estimated annual loan payment of a typical graduate would have to be at or below 20 percent of his or her discretionary income or 8 percent of his or her total earnings to be considered a program that leads to gainful employment. Programs that exceed these levels would be at risk of losing their ability to participate in taxpayer-funded federal student aid programs. Late last week the department gave schools more time to appeal their ratings, which are generated using earnings data from the Social Security Administration and debt information from the department’s records and the school. Final appeals, originally due March 10, are now due July 1. But Democrats argue the rule was generous to begin with, giving schools three opportunities to appeal their rates. “According to a Department spokesperson, the delay was also due to ‘a question about whether schools can provide data to a third party,’” the senators wrote. “It is unclear how this question could not have been solved through follow-up guidance rather than a delay.” DeVos is also giving Gainful Employment Programs until July 1 to switch to a new format in meeting the requirement to disclose information about their programs, including graduation rates, tuition and fee amounts, typical student debt upon graduation and what a graduate is likely to earn. The senators asked DeVos how long
                                  7 years ago by @prophe
                                   
                                    Mar2017EnglishUSADepartment_of_EducationDonald_TrumpObamadelayedgainful_employmentfor-profit
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                                    Students who were scammed by a for-profit college back in the '80s could get their money back under the Trump administration. The Wilfred American Education Corp. used to run beauty and secretarial schools that primarily attracted low-income students, usually women. In 1988, Wilfred had 58 schools and more than 11,000 students, making it one of the largest for-profit college chains in the country. Many of those students used federal loans to pay for their education. But in 1991, Wilfred was found guilty of fraud in two different federal court cases. By law, the Department of Education should have canceled the student loans after the school was shut down. That didn't happen. Seven former Wilfred students sued President Obama's Education Department, demanding their student debt be canceled and the loan payments they made over the years be reimbursed. They were among 60,000 people who took out government-backed loans to go to Wilfred. That lawsuit was originally dismissed on a technicality. The decision was overturned when a judge said the Education Department was required to tell students if they're eligible to cancel a loan. Now, four people familiar with the case told Bloomberg the federal government is considering a deal. It would allow students to petition to cancel their debt and get refunds on past payments. The outlet notes a lawyer for the students said in a March 9 filing that they "have made substantial progress toward a final settlement," but no official agreement has been submitted to the court yet.
                                    7 years ago by @prophe
                                     
                                      for-profitMar2017EnglishUSADonald_TrumpDepartment_of_Education
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                                      Arizona Summit Law school, a troubled for-profit institution owned by the InfiLaw System, has been placed on probation by its accrediting body, the American Bar Association. The association’s move was announced on Monday and followed Arizona Summit’s affiliation with Bethune-Cookman University, a nonprofit historically black college in Daytona Beach, Fla. Arizona Summit Law in Phoenix is the second school owned by InfiLaw to be placed on probation for failing to meet A.B.A. accreditation standards. Sterling Partners, a private equity firm in Chicago and Baltimore, is an investor. The first, Charlotte School of Law in Charlotte, N.C., lost its eligibility for federal student aid in January as a result of the probation. Its enrollment has declined sharply, and the school has said it is trying to restart federal aid and is exploring affiliation with a nonprofit college in a Northeastern state. At Arizona Summit, the bar association found that admissions practices, academic programs, and graduation and bar exam passage rates were below par. These deficiencies, according to a statement by the A.B.A. Section of Legal Education and Admissions to the Bar, “have resulted in the law school now being in a position where only immediate and substantial action can bring about a sufficient change to put the law school on a realistic path to being in compliance within the time allowed” by the bar association’s rules. Only 24.6 percent of Arizona Summit graduates who took the Arizona state bar exam for the first time in July 2016 passed, an exceptionally low rate. Charlotte School of Law reported nearly the same passage rate for its graduates who took the North Carolina bar exam last month. The bar association said that because the situation at Arizona Summit was critical and urgent, it could have hearings this year to consider any additional remedial action or sanctions “up to and including withdrawal of the law school’s approval.” The probation decision was made by the bar association’s Council of the Section of Legal E
                                      7 years ago by @prophe
                                       
                                        Mar2017for-profitbanaccreditationUSALaw
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                                        Remember when candidate Trump promised to make college affordable for everyone? Yeah, that’s not happening.  Instead, Trump is turning to the notorious corporateers who have been pouring McDiplomas on the nation’s steaming trillion-dollar student debt pyre to shake up higher education. Education Secretary Betsy DeVos’s controversial pick for a special assistant—for-profit college corporate lawyer Robert Eitel, may be a portent. As counsel for Bridgepoint, the parent company of the now-tainted brands of Ashford University and University of the Rockies, was forced by the Obama administration last year to refund $24 million in tuition and debt costs to students, plus civil damages, after the Consumer Financial Protection Bureau found that its heavy marketing scheme for its online programs, and “deceived its students into taking out loans that cost more than advertised.” Bridgepoint is just one player in a sector of for-profit institutions that are known for exploiting millions in federal loans and grants, providing substandard academics and granting worthless diplomas. While many companies were reined in by regulators under Obama, the industry as a whole has survived, and is now poised for revival under Trump. In fact, even those companies penalized for defrauding students have not been held fully accountable over federal student debts; Bridgepoint’s sanction, for example, did not encompass federal loans, even though graduates are typically chained to about $33,000 in taxpayer-subsidized debt. But the for-profit college companies hobbled by financial crisis under Obama might see a major resurrection under Trump’s and DeVos’s deregulatory agenda. One tactic may be for belly-up for-profits to reinvent themselves as nonprofits, in order to skirt future regulations and wriggle out of liability for financial abuses. The Corinthian college chain, for example, following bankruptcy, was placed under the control of a nominal “nonprofit” called Zenith (which was later exposed for having compromising financial entangle
                                        7 years ago by @prophe
                                         
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                                          It might just be career government lawyers doing their jobs, and doing them well, until the Trump Administration can catch up and work its malevolence, but in court papers filed today, the Trump Justice Department defended the Obama Administration’s gainful employment rule, a measure aimed at curbing predatory abuses by for-profit colleges. The rule penalizes expensive career college programs that, year after year, leave graduates with debts that, based on their earnings, they cannot afford to repay. “The public interest is served by allowing the Department to go forward with implementing the GE regulations,” Justice Department lawyers wrote on behalf of their client, Secretary of Education Betsy DeVos, who is being sued by an association of cosmetology schools. The association’s somewhat risque argument is that many hairdressers and other beauty professionals do not report all their tip income to the IRS, and thus their graduates actually are doing better than the gainful employment calculations give them credit for. Revised under pressure from industry lobbyists, the Obama Administration’s rule is not very strong, but it does endanger some of the worst-of-the-worst college programs. The operators of those programs, who have been raking in billions in taxpayer money, want to make sure they can still act with impunity, even though their abuses have ruined the lives of countless veterans, single moms, and other students. There are good cosmetology schools, as well as other types of career schools. The gainful employment rule aims to channel resources and students to those quality, affordable schools, and away from the kind of for-profit colleges that law enforcement agencies are investigating or prosecuting for fraud. But given: that Donald Trump was previously the proprietor of his own predatory for-profit real estate “university”; that Trump crony Newt Gingrich and congressional Republicans have aggressively advocated for the for-profit college industry; that DeVos has been invested in for-profit education
                                          7 years ago by @prophe
                                           
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