Another for-profit college is in trouble with the government for allegedly misleading students about their chances of getting a job and increasing their income after graduation. DeVry University was sued by the Federal Trade Commission Wednesday for ads that it said deceived students. At issue is a statistic the college started using in ads in 2008: that 90% of grads since 1975 found jobs in their fields of study within six months of graduation. The FTC found this to be "deceptive," and the college is now required to notify current and prospective students about the unsubstantiated claim.
The legal pursuit of a defunct for-profit college in Florida and its former owner gets wilder with each filing. A new civil suit filed by a U.S. attorney and the state's attorney general, Pam Bondi, alleges that FastTrain College defrauded the federal government with false claims for millions of dollars in financial aid.
Westwood College, a for-profit college owned by Alta Colleges Inc., announced on January 27, 2016, that it would close its doors effective March 2016. Students were informed they should choose another school by mid-February if they want to continue with a partner school. The school had previously announced on November 11, 2015 that it would stop enrolling new students.
How far would you go to pay off your student loans? Cut off a pinky finger? Take a punch from former professional boxer Mike Tyson? Give up social media for life? A new poll shows some graduated student loan borrowers would willingly go to extremes to pay off outstanding student debt. That includes pain, suffering and, possibly, a move to Syria.
It’s been a year since 15 former students of the now-defunct Corinthian Colleges refused to repay their federal student loans, alleging the for-profit giant defrauded them. The “debt strike” sparked a movement of students pressuring the government into forgiving debt they obtained pursuing dubious degrees and certificates from for-profit colleges.
Click here to view the live stream and past video of the discussion on Periscope.
Student loan giant Navient Corp. plunged on Wall Street Thursday to an all-time low that for the first time was less than the company's book value.
Navient shares fell 6 percent to $10.27 as an influential progressive group urged states to crack down on the student loan servicing industry. Navient's most recent book value, an estimate of how much shareholders could fetch if the company were liquidated, was $10.73 per share, suggesting that investors now believe the company is worth less than the value of its assets.
In the past few years, for-profit colleges have come under increasing scrutiny for preying on students. These institutions have been accused of touting misleading or inaccurate job placement rates, using questionable recruitment practices, misrepresenting their educational benefits, and giving inaccurate information about accreditation.
Government officials are starting to see through the scams. For example, one Corinthian Colleges graduate who ended up working at Taco Bell was counted as having a job in her field of study, which was accounting. After investigations by the U.S. Department of Education revealed that those job placement rates were indeed misleading, the company was fined $30 million by the department. In April, Corinthian shut down its remaining campuses.