For-profit colleges are bad investment for students and for our society. However, there is a reason that they exist and have created a seismic shift in higher education.
A business that was getting as much as $1.4 billion a year in federal aid now has claimed in court that it has just $19 million in assets, but $143 million in liabilities. So who is owed all this money, and what does that tell us about Corinthian's conduct?
The government should have stopped giving money to Corinthian Colleges long ago. The idea that it was still allowing students to enroll and commit our tax dollars to that company just two weeks ago boggles the mind. Corinthian's bad behavior, combined with the Department of Education's bad oversight, has left many more students locked out than there could have been.
The Herald's disclosures about the way for-profit colleges have ripped off students and taxpayers, while buying influence with powerful politicians, are too many to recount, but here are just a few bites to tempt you.
The for-profit college industry continues to rent former members of Congress, blue-chip law firms, top Democratic communications advisers, and other high-priced, esteemed talent to argue against any kind of accountability for its abuses.
Playing defense for the for-profit college industry is not unusual for Capitol Hill lawmakers. A high volume of campaign contributions have cemented ties between the for-profit college industry and members of Congress, especially Republicans.
Hillary Clinton's position stands in stark contrast to that of GOP heavyweight Jeb Bush, who last year appeared before the for-profit college trade group APSCU to embrace the industry and denounce efforts to hold predatory schools accountable for waste, fraud, and abuse with taxpayer dollars.
What kind of world allows men like ATI's former CEO to be toasted as a humanitarians, while Tiffany Ondich and others defrauded by their schools struggle to make ends meet? President Obama, Secretary Duncan, and their Department of Education need to stand up stronger for students, right now.
If legal remedies for borrowers, such as defense to repayment, exist only on paper, they are not worth very much. Meeting with Corinthian borrowers is the first step in the Department's necessary recognition that it needs to be more proactive and protective when it comes to student borrowers.
Will this latest court decision convince Globe University officials to stop pointing the finger at others and deflecting blame? Hopefully. It's well overdue and their students and graduates deserve better.
Durbin said that ECMC's CEO, Dave Hawn, had indicated that he had listened to the concerns of Durbin and others and agreed to drop a policy forcing students to give up their right to bring grievances with the school to court.
The question posed for you by the story of for-profit colleges is whether you want to be paid to shield the privileged even when they engage in blatant abuses, or whether you want to use your talents and creativity to help build a stronger, more just, more innovative, and more productive society that benefits everyone.
While Arthur Keiser exposed his own abuse of nonprofit rules, he does not win the prize for honesty in IRS reporting by fake nonprofit colleges. That claim to fame goes to Carl Barney, owner of several colleges including a data-processing vocational school he patriotically renamed College America.
Federal aid is not supposed to go to colleges that are not responsible and capable in handling it. The admissions these college owners have made to the IRS are enough; there is no reason to wait for an IRS audit. Taxpayers do not need to put up with this.
A state court in Denver has just unsealed the complaint that the Colorado attorney general brought late last year against CollegeAmerica / Stevens-Henager, a former for-profit college network that recently converted to non-profit status.
A brand-new Everest College enrollment agreement, seen by Republic Report, combined with other information, suggests that the deal is worse for students than has been promised.