On January 1, 2023, a critical reform to the “90/10 rule” governing for-profit college federal aid eligibility took effect, finally closing a decades-old loophole that had incentivized predatory targeting of military veterans and active-duty service members by for-profit colleges seeking …
U.S. Department of EducationVeterans Education SuccessConsumer Financial Protection Bureau (CFPB)Holly PetraeusFor-Profit College Industry+1 morefor-profit-educationveteransgi-billregulatory-reformpredatory-recruitment+2 more
On June 24, 2022, the U.S. Department of Education under Secretary Miguel Cardona reached a landmark settlement in the class action lawsuit Sweet v. Cardona (originally filed as Sweet v. DeVos), agreeing to automatically cancel approximately $6 billion in federal student loans for roughly 200,000 …
U.S. District Court for Northern CaliforniaU.S. Department of EducationMiguel CardonaBetsy DeVosProject on Predatory Student Lending+1 morefor-profit-educationstudent-debt-cancellationborrower-defenseclass-action-settlementfraud-relief+1 more
Secretary of Education Betsy DeVos formally repealed the Obama Administration’s Gainful Employment Rule on July 1, 2019, eliminating the only federal accountability mechanism that measured whether career training programs at for-profit colleges and non-degree programs at all institutions …
Betsy DeVosU.S. Department of EducationRobert EitelJulian Schmoke Jr.For-Profit College Industry+1 morefor-profit-educationderegulationregulatory-capturerevolving-doorstudent-debt+2 more
Dream Center Education Holdings (DCEH), a California-based religious nonprofit with no prior experience operating colleges, entered receivership on January 18, 2019, less than two years after acquiring the Art Institutes, Argosy University, South University, and Western State College of Law from the …
Dream Center Education HoldingsArt InstitutesArgosy UniversitySouth UniversityWestern State College of Law+4 morefor-profit-educationnonprofit-conversionfraudcollege-closurestudent-aid-theft+2 more
ITT Technical Institute, one of the nation’s largest for-profit college chains operating more than 130 campuses across the United States, announced on September 6, 2016, that it would immediately cease operations and close all locations, stranding approximately 35,000 actively enrolled …
ITT Technical InstituteITT Educational ServicesKevin ModanyDaniel FitzpatrickU.S. Securities and Exchange Commission (SEC)+1 morefor-profit-educationfraudsecurities-fraudcollege-closurestudent-debt+2 more
The United States Department of Justice and attorneys general from 38 states and the District of Columbia reached a landmark $95.5 million settlement with Education Management Corporation (EDMC) on November 16, 2015, resolving allegations that the nation’s second-largest for-profit education …
Corinthian Colleges Inc., one of the largest for-profit college chains in the United States operating Everest College, Heald College, and WyoTech brands, announced on April 26, 2015, that it would immediately cease operations at all remaining campuses, abruptly closing 28 ground locations and …
Corinthian CollegesEverest CollegeHeald CollegeWyoTechU.S. Department of Education+2 morefor-profit-educationfraudcollege-closurestudent-debtpredatory-lending+2 more
The U.S. Department of Education under Secretary Arne Duncan published the final “Gainful Employment Rule” on June 13, 2011, establishing that career training programs at for-profit colleges and non-degree programs at all institutions must demonstrate that graduates earn sufficient …
U.S. Department of EducationBarack ObamaArne DuncanAssociation of Private Sector Colleges and Universities (APSCU)For-Profit College Industryfor-profit-educationregulationstudent-debthigher-educationinstitutional-capture+2 more
The University of Phoenix and its parent company Apollo Group agreed to pay $78.5 million on December 14, 2009, to resolve allegations that the nation’s largest for-profit university violated the False Claims Act by illegally paying recruiters based on the number of students they enrolled, …
University of PhoenixApollo GroupMary HendowJulie AlbertsonU.S. Department of Justice+1 morefor-profit-educationfraudfalse-claims-actstudent-loanswhistleblower+3 more