Senate Report Blasts For-Profit Colleges

A two-year investigation by the U.S. Senate Health, Education, Labor and Pensions Committee has culminated in a scathing report on for-profit colleges, finding that these institutions too frequently put revenues   above education to the detriment of students charged high tuition and saddled with student loan debt.
According to one story in the Associated Press, the report from a committee chaired by Sen. Tom Harkin (D-Ia.) found that, "While students are aggressively recruited, they drop out in high numbers without the degree or certificate initially sought . . . [The report] found that 54 percent of students enrolled in 2008-2009 left without a degree or certificate by mid-2010. When two-year associate degree programs were studied, 63 percent left without a degree."

DeVry Slashes Jobs and Loses Share Value

DeVry, one of the nation's largest for-profit education companies, is facing hard times.

The Downers Grove, Illinois-based company -- the parent of DeVry University and other sellers of education to adults -- announced this week that it plans to cut 570 jobs, or 5.5 percent of its total workforce, amid declining enrollment.

According to Bloomberg News, DeVry shares also lost more than a quarter of their value in early trading on July 24.

Bloomberg News also quoted an industry analyst stating that "DeVry's competitors were faster to adjust to new scrutiny of student-recruitment practices."

Virginia Union Warned By Accrediting Body

The Associate Press reports that Virginia Union University has received a warning from its accrediting body due to reported failure to comply with certain financial standards.
According to the AP, the Southeastern Association of Colleges and Schools' Commission on Colleges has identified deficiencies in the Richmond-based university's control over its financial resources, as well as its control over externally funded programs and research. Importantly, the accrediting body also faulted Virginia Union for failure to comply with federal Title IV student financial aid requirements.
The commission is scheduled to review Virginia Union's accreditation in December.
Another university, Mountain State University, based in Beckley, West Virginia, lost its accreditation earlier this month.
If you have have concerns about accreditation issues at Virginia Union or Mountain State, you may share these concerns with attorneys at The Googasian Firm, P.C., which has represented thousands of students in class actions against colleges and technical schools throughout the United States, at contact@googasian.com.

Higher Learning Commission withdrawing accreditation of Mountain State University

Mountain State University, a university based in Beckley, West Virginia with online offerings across the country, has learned that its general accreditation body is withdrawing the school's accreditation.

As reported in the Register-Herald newspaper, Mountain State is facing loss of its general accreditation from the Higher Learning Commission on August 27.  The decision by HLC follows a year-long review that resulted in a notice by the accrediting body faulting the university in areas including "lack of integrity, resources and administrative leadership."  

The HLC is requiring Mountain State to file a teach-out plan with the commission by July 23 and students must be notified of their options by July 31.  Mountain State has announced plans to appeal the decision to withdraw accreditation.  Mountain State would keep its accreditation during any appeal process, according to published reports.

Separately, The Googasian Firm, P.C., a Michigan-based law firm that has pursued claims on behalf of thousands of students harmed by school closings and deceptive practices by institutions of higher education, is investigating the impact of these developments on current students.  If you have a concern that you wish to share with a Googasian Firm attorney, call 1-877-540-8333 or contact@googasian.com.

Ashford University Suffers Accreditation Setback

Ashford University, a for-profit school owned by Bridgepoint Education, Inc., suffered a significant setback last week when its accreditation application was denied by a regional accreditor.  Bloomberg Businessweek is among the news organizations reporting how Ashford did not comply with "multiple aspects" of the accreditor's standards in areas related to student retention, maintaining a core of full-time faculty and having an independent governing board. Ashford was seeking accreditation from the Western Association of Schools and Colleges.  Among the revelations in the recent reports is a large number of students dropping out of the school, which has a campus in Iowa and a significant online presence.
The Googasian Firm, P.C., a law firm specializing in pursuit of claims against for-profit schools,  is investigating the impact of Ashford's accreditation problems on current students.  If you have concerns about Ashford, you may share these concerns with Googasian Firm attorneys by calling 1-877-540-8333 or sending an e-mail to contact@googasian.com.

ACT College Shuts Down, Stranding Students

A Northern Virginia vocational college has abruptly shut down, stranding students and teachers who appeared for classes last week to discover ACT College closed.
The school, with campuses in Arlington, Alexandria, and Manassas, has left hundreds of students looking for answers.  Some students were only weeks from graduation.
A United States Department of Education spokesman told The Washington Post that the school's eligibility for federal aid was recently denied "to protect students and taxpayer funds."
The school had operated for nearly three decades announced its sudden demise by posting a letter on the door of its campus and providing limited information on its website.
Some students took out tens of thousands of dollars for programs in subjects such as medical assisting, health sciences, and medical radiography.
The Googasian Firm, a class action law firm based in Michigan, is investigating potential claims belonging to former students.  The firm has previously pursued certified class actions on behalf of former students of for-profit schools, including those affected by the sudden closing of ComputerTraining.edu in December 2009 and Clayton College of Natural Health in July 2010.  More information about the class actions arising from the closure of these schools is available at www.computertrainingclassaction.com and  www.ccnhclassaction.com.
Persons with concerns about the closing of ACT College who wish to speak to The Googasian Firm attorneys investigating the closure may call 1-877-540-8333.

For Profit Colleges Suffer Enrollment Drops

The Chronicle of Higher Education reports that intense public scrutiny of the nation's largest for-profit higher education have taken a toll on enrollment, revenue and profit.  Companies including Career Education Corporation, Corinthian Colleges, and Kaplan have all experienced declines during a period of "negative publicity abut their colleges from Congressional hearings, lawsuits, and state investigations," according to the Chronicle.
In some instances in the for-profit school sector, declining enrollment and revenue actually prompts admissions officials -- who are responsible for meeting sales targets -- to engage in deceptive practices on issues like accreditation, credit transferability, and placement.   If you are a student or school official with concerns about the practices of a particular for-profit school, click here.