The letter was watered down from the version that was circulating among House members earlier last week. In particular, the final letter dropped a key sentence from the draft, which echoed language used by for-profit college lobbyists.
Despite President Obama's obvious awareness of the egregious, widespread nature of the problem, his own team may be on the verge of failing to effectively implement a key measure needed to hold for-profit colleges accountable for such abuses.
If you think the for-profit colleges will be inclined to moderate their bad behavior if the new gainful employment rule is somewhat weakened again, consider the propaganda attack the industry has unleashed this week to coincide with the rulemaking session.
America's for-profit colleges are receiving as much as $33 billion in a single year from your tax money, and billions more from the pockets of students, a lot of whom are left deep in debt and jobless from their encounters with predatory schools.
It's a busy time for APSCU, the trade association of America's for-profit colleges. The group spends its time trying to block reasonable measures to hold the worst actors in its industry responsible for their systematic abuses of students and taxpayers.
The for-profit college industry has engaged in a consistent pattern of presenting defenses by powerful people without disclosing that the authors have a financial interest in the success of the industry.
For years, the EdOp Loan has been marketed as one of the "primary sources of financial aid" and carried an 18% interest rate. As I mentioned in my previous article, the mailing address listed on EdOpLoan.com happens to be the same mailing address for American Accounts and Advisers, a debt collection agency.
It seems that the powerful for-profit college industry, which has used its taxpayer-provided riches -- up to $33 billion a year -- to buy the most expensive lawyers and lobbyists, and the allegiance of many in Congress to keep the money flowing, is finally on the run.
The lobbying group of America's for-profit colleges, APSCU, announced today that Michael Dakduk is its new Vice President of Military and Veterans Affairs. Dakduk had just left the job of executive director of the Student Veterans of America (SVA). You heard that right.
The Federal Trade Commission may be ready to get tough with America's for-profit colleges. That makes sense. The business model of many for-profit colleges is built on deception -- if students actually had all the relevant information, they wouldn't enroll.
The school faces a class action lawsuit from students who claim Globe fabricates job placement numbers, accreditation, and transfer opportunities to other institutions -- all while saddling unsuspecting students with student debt at the expense of American taxpayers.
When Ernesto Perez, CEO of for-profit Dade Medical College, was named to Florida's Commission on Independent Education -- a panel charged with overseeing schools like his -- he omitted criminal convictions and arrests from his Senate confirmation questionnaire.
APSCU is trying to show in public that the sector is working to clean up its act, with a booklet advising recruiters to provide students with "clear and accurate information." But, as we've come to expect, APSCU has no shame.
Representative John Kline, Republican of Minnesota, chairs the House Education and the Workforce Committee. He also is a living symbol of the Republican Party's shameful loyalty to big for-profit colleges.
We have a disturbing portrait of a company preying on vulnerable people and then covering up its misdeeds with lies. So who is Corinthian Colleges? Who are the owners of this predatory institution?
The for-profit college industry is under pressure. Now, things are about to get even tougher for these companies -- but, thankfully, a little easier for people tired of being relentlessly pursued by for-profit college recruiters.