If law enforcement continues these half-measures, the real power will continue to reside at the U.S. Department of Education, which provides almost all of the funding for these predatory for-profit colleges.
A Colorado state trial court has rejected nearly every aspect of a motion by a former for-profit college company to dismiss a fraud lawsuit brought by the Colorado attorney general.
The fact that federal aid is still available to go to EDMC schools and other predatory for-profit colleges serves as both a financial lure and a Good Housekeeping seal to draw these students in.
Every week there are amazing videos by and about America's predatory for-profit colleges, which receive billions annually in taxpayer money, spend nearly a quarter of that money on advertising, deceive many students into enrolling, and use high-priced D.C. lobbyists to keep the money flowing.
Unlike many of the industries that force their customers and workers into arbitration, the for-profit college industry is fueled almost entirely by taxpayer money -- some $30 billion per year, for many companies amounting to around 90 percent of their revenue.
McCain, by using his power as chairman of the Senate Armed Services Committee to pressure the Department of Defense to back off a legitimate investigation of the University of Phoenix, is doing a disservice to service members and veterans, who deserve to be protected against deceptive recruiting, poor quality programs, and other predatory practices.
Republican senators wrote to the Secretary of Defense calling on him to "reconsider" the decision to put the largest for-profit college on probation. Coincidentally, all three senators have received significant campaign contributions from the group that owns the University of Phoenix.
Alejandro Amor, the former owner-CEO of for-profit FastTrain College, is scheduled to face a jury trial in Miami Wednesday morning. Amor and his co-defendant face criminal charges of defrauding the federal government to obtain about $6.5 million in student aid -- Pell grants and Direct Loans.
In many cases these schools charge too much, and they spend too little on instruction. As to admitting students whom the program won't help, sometimes these owners say they just can't predict who will succeed and who won't.
In the for-profit college field, it appears that what works are preppy-sounding family or village names, evoking Harvard, Princeton, Stanford, Amherst -- in other words, evoking exclusivity, nurturing, tradition, success, power.
The struggle is far from over to make higher education a place where student and taxpayer interests are placed at the forefront, where honest and effective education enterprises reap the greatest rewards, and where greedy and duplicitous operators are shown the door.
A group of Democratic members are sending a letter this morning calling on the Department of Education to "automatically discharge the debt" of all students who attended campuses run by now-bankrupt Corinthian Colleges, one of the worst actors in the scandalized for-profit college sector.
Governor Brown could bring some additional help to Corinthian victims if, by October 11, he signs a bill currently on his desk.
The fight is far from over. The industry's effort to strike down the Obama gainful employment rule -- a modest measure that would weed out from federal aid eligibility just a small fraction of the programs that leave students with crushing debt -- continues today in Congress and the courts.
The Department of Education already has regulations in place to curb bad behavior at FPCUs. Nonetheless, there is mounting evidence that for-profits are artificially increasing their prices to simply capture student aid.
Massachusetts attorney general Maura Healey today announced settlements of her investigations of two large for-profit college chains for unfair and deceptive student recruiting practices. Kaplan will pay $1.375 million to former students, and Lincoln Tech will pay out about $1 million.