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.

Belford High School Can Be Sued In Federal District Court

A federal district judge in Detroit ruled today that a purported online high school, Belford High School, can be sued in the United States.  Contending that it was a "Panama-based" educational institution,  Belford had sought dismissal from the case on the grounds that they did not have sufficient contacts with Michigan, where the lawsuit was filed.  The opinion and order from the federal district judge ruled otherwise, allowing a class action against Belford to proceed in federal court in Detroit.   The class action lawsuit alleges that Belford High School is an internet scam that defrauds students by offering them "valid" and "accredited" high school diploma when, in fact, the "school" actually has no authority to issue such diplomas.   For further information on the lawsuit, visit
www.belfordlawsuit.com.

Everest College Recruiter Details Sales Tactics

A news report details a recent court filing in which a former admissions officer at for-profit Everest College asserts that the school instructed recruiters to make prospective students "feel hopeless" and gave recruiters financial incentives for meeting quotas.   This is just another example of the pervasive problem that occurs in the sales-driven "admissions offices" of for-profit institutions, where misrepresentation are frequently made by sales people whose livelihoods depend on meeting enrollment targets.   If you have concerns about what is being said or has been said at a for-profit school you've attended or worked for, feel free to share it with us at The Googasian Firm, 1-877-540-8333.

Education Trust Report Documents Graduation Rate Problems at University of Phoenix

Here is a link to the Education Trust report released this week that has received great public attention.   It documents, among other things, pervasively low six-year graduation rates at the granddaddy of all for-profit colleges, University of Phoenix.   At the Detroit campus, for example, the six-year graduation rate is 9 percent, according to the report.