The federal and state government are (finally) really going after the for-profit college industry.
Corinthian Colleges in the US, which owns Everest, Wyotech, Heald and a few other schools, may shut down this week if they can't find funding. Last week, the government held its ability to access federal financial aid due to issues the school did not resolve. The Department of Education said that Corinthian refused to address issues with its marketing practices, as well as falsification of job placement data. In fact, they said the school refused to even respond when the DoE contacted them about these issues.
CEC owns Sanford Brown, the Le Cordon Bleu schools, and Colorado Technical University, amongst others.The Obama administration's move to restrict Corinthian's funding, made last week but not disclosed until Thursday, signals a newly aggressive approach to policing the for-profit education industry. The Department of Education has proposed eliminating federal funding for for-profit schools with high proportions of graduates who default on their student loans or whose debt levels are high relative to their incomes. The Consumer Financial Protection Bureau, meanwhile, is investigating whether the schools coax students into taking out high-cost loans.
Several states also have been looking into the industry. In January, state attorneys general sent subpoenas to Corinthian, as well as Career Education Corp. CECO -9.18% , Education Management Corp. EDMC -4.21% and ITT Educational Services Inc., ESI -6.06% demanding documents from the four companies about financing and recruitment practices.
EMC owns the Art Institute chain of schools, Brown Mackie, Argosy U, and South U.
ITT Tech, I believe, only uses its own name on its schools.
What do you guys think of the for-profit schools?