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.

SF Chronicle Examines For-Profit College Problems

Another nationally recognized newspaper, the San Francisco Chronicle, has published a story on the plight of students attending for-profit schools, including those at Argosy University and Everest College.

New Study Details Problems with For-Profit College Debt and Graduation Rates

The Newark Star Ledger reports on a new study by the non-profit Education Trust revealing serious problems in for-profit education.   According to the study, "Only one in five students who enrolls in a for-profit college graduates within six years, and they’re likely to rack up far more debt than students at private and public colleges, according to a recent study."  The study also details how for-profit colleges have grown 10 times faster than traditional colleges in the last decade.   

For-Profit Educator: "Gainful Employment" Rules Needed

Great recent op-ed piece recently in The New York Times from a for-profit education teacher who favors the Department of Education's "gainful employment" rules that the for-profit education lobby is attempting to block  An excerpt:
"It’s disturbingly easy to get accepted, receive thousands of dollars in loans and then flunk out with crippling debt and no degree to show for it. I’m about to fail 4 out of 11 students in one of my classes because they simply stopped showing up. Some students will fail anywhere, but at this rate it’s clear that many of them should never have been sold on the program in the first place.

I’ve also been on the other end of these sales tactics. I once looked into taking a class at a for-profit college. The admissions counselor was quite skillful at avoiding my questions about costs, and pressed me to enroll in a full degree program, despite my repeated refusals."