Survey of for-profit school students gives schools mixed results

A new survey of for-profit school students, alumni and employers gives the schools mixed results, with about a third of alumni rating their programs to be "well worth it."  The survey conducted by Public Agenda and financed by the Kresge Foundation finds that only thirty-seven percent of the alumni described their degrees as "well worth it," with thirty-two percent stating they "weren't really worth it" and another thirty percent stating it remains to be seen.

Federal complaint system set up for veterans harmed by deceptive for-profit colleges

A new system aimed at making it easier for veterans and military service members to file complaints regarding deceptive practices by for-profit colleges is up and running.  As reported in the Huffington Post, the new portals for complaints are the result of a collaboration involving the Department of Education, the Department of Justice, the Department of Veterans Affairs, the Department of Defense, the Consumer Financial Protection Bureau, and the Federal Trade Commission.  Numerous investigations have revealed that for profit colleges have engaged in widespread abuses of vets and military families.

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State attorneys general investigating major for-profit school businesses

A coalition of attorneys general from at least 12 states is investigating major for-profit school companies, according to recent news reports.  The investigation reportedly includes Education Management Corp., Corinthian Colleges, Career Education Corp, and ITT Tech.  The Huffington Post reports that each company has filed disclosures with the Securities Exchange Commission regarding the investigation, and "Each school said it was being probed by a group of 12-13 state AGs, with the AGs of Kentucky, Iowa, Pennsylvania, and Connecticut each taking the lead on investigating one of the companies.  All four companies said they intended to cooperate." 

Another for-profit school suddenly closes

A California-based for-profit school suddenly closed recently, marking the latest example of students and faculty being blindsided by the shuttering of a school with accreditation and financial aid troubles.
The Los Angeles Times reports that Career Colleges of America abruptly closed on January 9, 2014, after more than 25 years of operation.  Months earlier, the school had been notified by its accreditor that it was in danger of losing its accreditation due to budgeting and other fiscal issues.

Federal agency investigates ITT and Corinthian

The newly created Consumer Financial Protection Bureau is investigating ITT Educational Services and Corinthian Colleges -- two of the nation's largest for-profit education companies.
As reported in the Chronicle of Higher Education, the agency has informed ITT and Corinthian regarding its investigations, although the precise nature of the inquiries has not become public.  A senior analyst for Wells Fargo Securities, according to the Chronicle, has written that ITT is most likely being investigated after disclosing that it expected more than 50 percent of its student borrowers to default on their private loans.

Closing of American Career Institute prompts reform effort

One year after the sudden closing of American Career Institute, Massachusetts is considering reforms that seek to reduce deceptive practices and require greater accountability from for-profit colleges.  As reported by Masslive.com, the state is considering regulations sought by Attorney General Martha Coakley would "would prohibit for-profit schools from aggressive sale tactics, such as repeated solicitations through phone calls and text messages, and require them to disclose their tuition and fees, placement statistics, and graduation rates in their advertising."  
ACI closed without learning in early 2013 in Springfield, Cambridge, Braintree, Framingham and Woburn. 

Federal judges finds against accrediting agency for revoking accreditation of massage school

A federal judge has revoked an accreditor's decision to strip a massage school of its accreditation, finding that the decision by the accreditor was arbitrary and unreasonable.  The decision by U.S. District Judge Liam O'Grady reversed the March 2012 actions of the Accreditation Alliance of Career Schools and Colleges to revoke the accreditation of the Professional Massage Training Center in Springfield, Missouri.  The judge also awarded $429,000 in damages in favor of the school.

Massachusetts officials seek closer scrutiny of for-profit scools

The Boston Globe reports that two Massachusetts officials are taking steps to provide closer scrutiny of for-profit colleges, where students often find themselves taking on heavy student loan debts for subpar programs with limited job prospects and credit transfer opportunities.
According to the report, U.S. Senator Elizabeth Warren (D-Mass.) has introduced a "bill she said will protect student borrowers by requiring colleges to assume some of the risk of student loan default." 
Meanwhile, the state's attorney general, Martha Coakley, " is proposing new state regulations prohibiting for-profit and occupational schools from using misleading advertising and unfair lending practices."
If you have a concern about a for-profit school, contact the attorneys at The Googasian Firm, 1-877-540-8333.

Minnesota settles dispute over accreditation with for-profit college

The Chronicle of Higher Education reports that the Minnesota attorney general has settled a dispute with Herzing University relating to lack of accreditation over the for-profit school's associate degree program in clinical medical assisting.  According to the Chronicle, "Under the settlement, Herzing must disclose to students the accreditation status of programs it offers in the state, including in advertisements and on its website. The settlement also offers students who enrolled in the unaccredited program options for obtaining certain types of refunds."

NY Attorney General Secures $10.25 million settlement with Career Education Corp.

New York's attorney general has entered into a $10.25 million settlement with one of the nation's largest for-profit school corporations after a two-year investigation into allegations of inflated job placement statistics and other misconduct relating to enrolling students.  Attorney General Eric T. Schneiderman announced that the settlement with Illinois-based Career Education Corporation "resolves an investigation that revealed that in disclosures made to students, accreditors, and New York State, CEC significantly inflated its graduates’ job placement rates. CEC will pay $9.25 million in restitution to students, a $1 million penalty, and has agreed to substantial changes in how the company calculates and verifies placement rates."  According to the attorney general's office, its investigation revealed that CEC inflated job placement statistics from at least 2009 through the spring of 2011."  CEC operates schools that enroll about 75,000 students nationwide, including the Sanford-Brown Institute, American InterContinental University, and Colorado Technical University.

Accreditor reportedly will allow Ivy Bridge students to continue at Tiffin University

The Chronicle of Higher Education reports that the Higher Learning Commission has indicated that current students in Ivy Bridge College associate degree programs can now continue their studies at Tiffin University.
Tiffin was ordered last month to discontinue Ivy Bridge College, its joint venture with a for-profit education company called Altius Education.  The Chronicle writes, "Tiffin can continue offering the program to enrolled students, but 'we just can't do it through this business relationship with Alitus,' said Paul Marion, Tiffin's president, in an interview on Thursday."  According to the Chronicle, the teach-out plan at Tiffin is subject to the Higher Learning Commission's approval.

Ivy Bridge College Suddenly Announces Closing

Thousands of students pursuing associate's degrees through Tiffin University's Ivy Bridge College unit are reeling in the wake of the sudden announcement that Ivy Bridge will be closing in October.  Tiffin announced on August 1 via a post on Facebook that would be discontinuing its degree programs effective October 20.  The Toledo Blade reports that the sudden announcement regarding closure comes after Tiffin withdrew a proposal for accreditation for its Ivy Bridge programs made to The Higher Learning Commission after it became clear that it would not be supported by the accrediting body.  The forthcoming closure may affect thousands of students pursuing online programs, many of whom have incurred tens of thousands of dollars in debt.
The Googasian Firm, P.C., a Michigan-based firm that has represented thousands of students in class actions arising from school closings, is investigating the developments at Tiffin and Ivy Bridge.  If you have concerns that you wish to share with The Googasian Frim, please call 1-877-540-8333 or send an e-mail to contact@googasian.com.

Massachusetts investigates University of Phoenix

Massachusetts is investigating University of Phoenix, demanding that the nation's largest for-profit college provide the state's attorney general with data regarding its recruiting and financing practices. Massachusetts attorney general Martha Coakley, according to the Boston Globe, is investigating whether for-profit colleges use unfair or deceptive practices in the recruitment of students and the financing of their educations. University of Phoenix's owner, Apollo Group, has disclosed that that is has been asked for nine years' worth of detailed information about its Massachusetts operations.  Massachusetts also is investigating Kaplan Career Institute in Boston, which is owned by The Washington Post Co., and the Everest Institute campuses in Brighton and Chelsea, which are owned by Corinthian Colleges, Inc.

Massachusetts sues for-profit school, alleging false promises

Massachusetts is taking action against a for-profit vocational school, alleging that it falsely promised to train its students for well-paying jobs in the medical field with misleading job placement statistics.  The Boston Globe reports that Massachusetts attorney general Martha Coakley's office has sued Sullivan & Cogliano Training Centers, Inc., contending that advertisements of a 70 percent to 100 percent placement rate were false, with many graduates actually working in fast food jobs.

NYC Officials Seeks Data From DeVry, Career Education Corp.

The Chronicle of Higher Education reports that New York City Comptroller John C. Liu is calling upon DeVry, Inc. and Career Education Corporation to disclose students' loan-repayment rates and debt-to-income ratios.  These statistics are tied to one of the most widespread problems in the for-profit school industry: gainful employment among graduates.  The Comptroller's request to two of the nation's largest for-profit schools was made via shareholder resolutions.

American Career Institute Suddenly Closes

Hundreds of adults enrolled in job-training programs at American Career Institute are reeling following the sudden closing of the school.
The school's campuses in Massachusetts and Maryland closed without warning, leaving students without immediate recourse for completion of programs for which they had paid substantial tuition and devoted considerable time.
Media reports have suggested that administrators at the ACI had notice for a period of weeks regarding financial problems at the Springfield-based company, but students appear to have been kept in the dark.
Attorneys at The Googasian Firm, P.C., a law firm that has represented thousands of students affected by improper actions by for-profit schools around the country, is investigating.  If you have a concern or question about ACI's closing, feel free to call 1-877-540-8333 or contact@googasian.com.

South University whistleblower criticizes school's recruiting tactics

A former admissions official at South University asserts that recruiters at the school are encouraged to say whatever it takes to convince students to enroll.
Jason Sobek, former associate director of admissions for South University, told an investigative news team that he also was trained to target low-income students, single mothers, and even women staying at women's shelters.
According to an "I Team" report by a Florida television news station, Mr. Sobek is claiming that the South Univesrity's parent company, Education Management Corporation, "is involved in lying to students and defrauding taxpayers."  In addition to South University, EDMC operates Argosy University, Brown Mackie College, and the Art Institutes. EDMC denies Mr. Sobek's allegations.
Florida's attorney general is reportedly investigating EDMC-operated Argosy University for alleged unfair and deceptive practices.

Butler, Sawyer Schools Suddenly Close in Connecticut

Three Connecticut business schools have suddenly closed, leaving more than 1,000 students with significant student loan debt stunned and looking for answers.
Published reports in recent days have described the sudden closing of Butler Business School in Bridgeport and the Sawyer Schools in Hamden and Hartford that have affected 1,200 students. A state law requires at least 60 days notice prior to the closing of a school, and news reports indicate that this law may have been violated by Butler and Sawyer.

Attorneys at The Googasian Firm, P.C., a Michigan law firm that pursues claims against post-secondary schools on behalf of current and former students, are investigating the closure on behalf of students.  The Googasian Firm served as class counsel for students in a class action filed against Clayton College of Natural Health, Inc.. after that natural wellness school suddenly closed in July 2010.  The firm also represents a class of students affected by accreditation issues and the closing at the Palm Beach Institute of Technology.
If you have concerns about these closings that you wish to share with an attorney at The Googasian Firm, please call 1-877-540-8333.

Closure of Global College of Natural Medicine Investigated

Global College of Natural Medicine abruptly closed on November 30, 2012, leaving thousands of students without any clear recourse for completion of their studies or return of tuition entrusted to the school.  The California-based distance education school cited an inability to renew its license as a basis for the closing.

Attorneys at The Googasian Firm, P.C., a Michigan law firm that pursues claims against post-secondary schools on behalf of current and former students, are investigating the closure on behalf of students.  The Googasian Firm served as class counsel for students in a class action filed against Clayton College of Natural Health, Inc. after that natural wellness school suddenly closed in July 2010.

If you have concerns about GCNM's closing that you wish to share with an attorney at The Googasian Firm, please call 1-877-540-8333, or fill out a concern form here.

DACC Nursing Program Loses Accredtiation

The Las Cruces Sun-News reports that Dona Ana Community College in New Mexico was denied accreditation for its nursing program, leaving many students "worried and scrambling to find out what the loss means for their academic and professional careers."

According to the Sun-News, the Georgia-based National League for Nursing Accreditation Commission announced last week on its website that it had denied accreditation for DACC's associate-degree granting program.  Graduation from an accredited nursing program typically is a pre-requisite for many certifications and hiring.   DACC has told students that, despite the failure to obtain accreditation, they remain eligible to take a national licensure exam.

Loss of accreditation is a recurring issue in post-secondary education.  The Googasian Firm, P.C., a Michigan-based law firm that has represented thousands of college students across the country in multiple class actions arising from acts by schools that have harmed students, recently filed a class action on behalf of out-of-state students affected by the Higher Learning Commission's recent actions to revoke accreditation for Mountain State University in West Virginia.  The firm also is investigating the developments with regard to accreditation at DACC's nursing program.  If you have questions or concerns about DACC's failure to obtain accreditation, you may share those concerns with attorneys at The Googasian Firm by sending an e-mail to contact@googasian.com or calling 1-877-540-8333.