$150,000 In Student Loan Debt . . . And Mounting

A story in the Kansas City Star reports on the growing problem of mounting student loan debt -- including more than $150,000 in debt incurred by a young woman in Missouri who attained two degrees at a private college.  According to the article, although for-profit schools comprise about 10 percent of all federal loans, they are responsible for about half of all defaulters.

For Profit Colleges Spent Heavily To Water Down New Regulations

The New York Times reports that the for-profit college industry spent more than $16 million to lobby the Obama Administration for watered-down regulations that threatened to strip for-profit schools for eligibility for federal student loans if their schools failed to meet standards relating to graduates' gainful employment.  The lobbying effort was backed by officials connected to Kaplan University and University of Phoenix, among others.

If you have a concern about a for-profit college's enrollment or placement practices, contact The Googasian Firm, P.C., 1-877-540-8333.

Texas Wrestles With Unaccredited Schools

The New York Times reports on the growing presence of unaccredited schools in Texas due to a little-publicized 2007 court decision involving a religious institution. According to the report, "Critics of the decision say it may have opened the door to turning Texas into a breeding ground for unrelated diploma mills, with institutions allowed to grant degrees without approval from the state or a recognized accrediting body."

For-Profit School Loan Default Rates Higher

According to new federal government statistics, the loan default rates for students at for-profit schools in 2009 were substantially higher than at traditional private and public colleges and universities.   At for-profit schools, students defaulted on their loans at a rate of 15.2 percent, according to new U.S. Department of Education numbers;  in contrast, the default rate was 4.7 percent at private institutions and 7.3 percent at publicly funded schools.

NY AG Investigates Trump University, Other For-Profit Schools

The New York Times reports that the New York Attorney General has launched an investigation into practices at Trump University and other for-profit schools that sell expensive programs to adults seeking to better themselves.  The price of a course at Donald Trump's school can be as much as $35,000.   Other companies under investigation in New York including the owners of Ashford University, Everest Institute, American InterContinental University, and Lincoln Technical.

Mass AG investigates University of Phoenix, Others

An item in the Boston Globe reports that the Massachusetts attorney general is investigating recruiting and financing practices at University of Phoenix, as well as Kaplan Career Institute and Corinthian Colleges, which is the parent company of Everest Institute.

For-Profit Sector Sues to Block Federal Regulations

A for-profit school association has sued the federal government in an effort to block forthcoming federal regs aimed at eliminating deceptive trade practices and other problems at for-profit trade schools and colleges.   The effort to block these regs seems aimed primarily at protecting the business interests of the owners of for-profit schools, not the students who often incur massive debt to pursue programs at them.