The group says it has a right to compensation and were the real creditors of the company01/04/2017 | ConsumerAffairs
Back in September, ITT Technical Institute shut down all 130 of its campuses after the U.S. Department of Education barred it from enrolling new students using federal financial aid. The company initially blamed the closing on the Education Department, saying that the agency showed a “complete disregard” for its right to due process.
As the story unfolded, the Consumer Financial Protection Bureau (CFPB) announced that some students would be eligible to discharge their lo...
The rising enrollments raise fears of a student debt bubble at the graduate level01/02/2017 | ConsumerAffairs
The year 2016 was a nightmare for for-profit colleges and their students, as many of the industry's leading players imploded under pressure from federal and state regulators. But there's one striking segment that appears to be continuing to run a land-office business as 2017 dawns -- for-profit graduate schools.
Post-graduate students are rushing to enroll at schools like the University of Phoenix, Capella Univeristy and Walden University, as well as DeVry and Grand Cany...
You don't have to go to a name brand school to be successful05/12/2015 | ConsumerAffairs
In recent years high school students and their parents have obsessed over the college admissions process.
Certain colleges have become like designer consumer products, a sign of status and announcing to the world that this young person is embarking on a meaningful and successful career. Of course, it doesn't always work out that way.
Some graduates of name-brand colleges flame out in their careers. Others fall into depression because they weren't accepted by the school of...
The actual stated requirements might prove impossible for most students to meet06/09/2015 | ConsumerAffairs
By Jennifer Abel
Yesterday the Department of Education (DoE) made the surprise announcement that it would offer “Debt relief for Corinthian Colleges students,” as part of an attempt “to ensure Americans are protected from unscrupulous colleges that deny students meaningful educational opportunities and leave taxpayers holding the bag.”
Yet critics call the DoE's plan “a process that re-victimizes students as a solution to a problem they [the DoE] created.”
The Corinthian Colleges debacle ...
Agency gave for-profit college the approval it needed to hand out federal education funds09/08/2015 | ConsumerAffairs
For more than two years Corinthian College has been the poster-child for the problems plaguing higher education, particularly among for-profit colleges and universities.
One year ago the Consumer Financial Protection Bureau (CFPB) sued Corinthian Colleges, Inc. for what it called an illegal predatory lending scheme. The suit claimed Corinthian lured tens of thousands of students to take out private loans to cover expensive tuition costs by advertising bogus job prospects...
The school operated in Texas and Oklahoma before it collapsed earlier this month10/25/2016 | ConsumerAffairs
In the latest for-profit college scandal, students at Texas-based Career Point College have been left holding their book bags after the school shut down its campuses in San Antonio, Austin, and Tulsa.
Fifty-nine of those students have sued the school, claiming it induced them to take out high-interest student loans just before shutting down, leaving the students without a degree or certificate and drowning in debt. Five other students had filed a similar suit earlier, Cou...
The board of the publicly traded company has voted to sell itself to private investors02/08/2016 | ConsumerAffairs
Apollo Education Group operates University of Phoenix, one of the nation's largest for-profit colleges. After months of declining stock price and heightened government scrutiny – not to mention competition – the company has announced some major changes.
For starters, Apollo has announced it will take itself private, meaning its shares will no longer be sold on the stock market. Instead, the company is being acquired by a consortium of private investors, led by The Vistri...
The action follows the feds' decision to shut off the flow of federal funds to ITT08/29/2016 | ConsumerAffairs
California has ordered ITT to stop enrolling new students. The order came Friday, just one day after the U.S. Department of Education banned ITT from enrolling new students using federal financial aid funds in certain locations. It also vowed to increase its financial oversight of the chain of for-profit schools.
“The federal action raises grave concerns about the continued financial viability of ITT,” said Joanne Wenzel, chief of the state Department of Consumer Affairs...
Sen. Warren blasts Department of Education for its role09/30/2016 | ConsumerAffairs
Once you take out a student loan, you have to pay it back. It can't be discharged in bankruptcy, for example.
But there is one scenario where you might be able to walk away. The law allows consumers to discharge some student loans if the school they were attending closed its doors.
It happened last year when Corinthian Colleges shut down, and more recently when ITT went under. As we reported just a few weeks ago, students who were attending ITT when it closed and had not ...
The for-profit chain of colleges could be forced to pay $500 million in restitution09/16/2014 | ConsumerAffairs
The Consumer Financial Protection Bureau (CFPB) is suing for-profit Corinthian Colleges, Inc. for what it calls an illegal predatory lending scheme.
The CFPB alleges that Corinthian lured tens of thousands of students to take out private loans to cover expensive tuition costs by advertising bogus job prospects and career services. Corinthian then used illegal debt collection tactics to strong-arm students into paying back those loans while still in school.
Study finds students borrowing the least default the most09/28/2015 | ConsumerAffairs
Community colleges are almost all state-supported and have always cost significantly less than four-year colleges.
So it was something of a surprise a couple of weeks ago when the Brookings Institution lumped community colleges in with for-profit schools as institutions where student loan recipients were most likely to default on their loans.
Admittedly, the much larger risk is for students at expensive for-profit schools, but the report's authors note, with some concern,...
Students and their families don't have as much time as they think01/16/2015 | ConsumerAffairs
The new year is more than just a flip of the calendar. For families preparing to send a child off to college it's a time for shopping for financial aid – an increasingly critical factor in being able to afford higher education.
January 1 was the first day families could start filing their FAFSA forms, the financial aid forms the U.S. Department of Education uses to calculate and distribute more than $150 billion in grants, loans and work-study funds each year.
The Estimated Family Contribution number from the government is often inaccurate10/28/2014 | ConsumerAffairs
Selecting a college really is a little like buying a car. There's the sticker price, but that really isn't what the car – or the college – costs.
When looking at a particular college, the sticker price is the cost of tuition. But that cost can be offset to some degree by financial aid. What the student ends up paying can be very different from the sticker price.
The government is trying to help by assigning applicants an Estimated Family Contribution (EFC) amou...
For-profit schools have been feeling the heat of stepped-up oversight following several failures09/20/2016 | ConsumerAffairs
For-profit colleges are barred from receiving more than 90% of their revenue from federal financial aid, but following the collapse of ITT, Corinthian, and other for-profit chains, DeVry says it will accept no more than 85% of its revenue from the feds.
“This is a significant pledge that DeVry Group is voluntarily making for the long term and it underscores our commitment to finding solutions to the issues facing higher education today,” said Lisa Wardell, president and ...
The Department of Education's current complex debt-relief program is essentially useless08/21/2015 | ConsumerAffairs
By Jennifer Abel
The attorneys general of 11 different states are urging the Department of Education to discharge the federal student loan debts of students whose for-profit schools were shut down for violating various laws – especially victims of schools that operated as part of the now-defunct Corinthian Colleges chain.
Yesterday, presumably in response to the DoE's stated intention of establishing a “clearer, more comprehensive” debt forgiveness program for defrauded students, Illinoi...
It could cut deeply into rising student loan debt while posing issues for other colleges01/12/2015 | ConsumerAffairs
President Obama has proposed taking state and local initiatives providing free community college for 2 years and making them a national program.
The proposal, unveiled in a speech in Knoxville, Tenn., last week, has a $60 billion price tag. And in his speech Obama made clear he views this as much as an economic initiative as an educational one.
“For millions of Americans, community colleges are essential pathways to the middle class because they’re local, they...
The company agrees to pay $160 million but denies any wrongdoing07/12/2016 | ConsumerAffairs
California has reached a $160 million settlement with K12 Inc., a Virginia-based for-profit charter school operator, claiming it used false advertising to lure parents into enrolling their children. The company denied the charges.
“K12 and its schools misled parents and the State of California by claiming taxpayer dollars for questionable student attendance, misstating student success and parent satisfaction, and loading nonprofit charities with debt," California Attorne...