Colorado Technical University improperly awarded financial aid dollars to dozens of students, the U.S. Education Department's inspector general said in an audit this month. The audit, whose findings were challenged by the for-profit college, a unit of Career Education Corp., recommended that the university be required to reimburse the government for $173,000 in improper payments and to examine the records of thousands of other students in its CTU Online unit to see if similar improprieties occurred.
Submitted by Paul Fain on September 25, 2012 - 3:00am
Bridgepoint Education Inc. announced Monday that its Ashford University has eliminated 450 positions in admissions and reassigned 400 other admissions employees, half to student services and half to a new department of "student inquiry." The moves are aimed at improving student success, the company said. Ashford is facing a two-pronged accreditation challenge. It is attempting to comply with compliance requests from its current regional accreditor, the Higher Learning Commission of the North Central Association of Colleges and Schools, following a rejected bid for accreditation by the Western Association of Schools and Colleges senior college commission.
Ashford says the department of student inquiry will "work with prospective students to ensure they are sufficiently prepared for the demands of a university education."
Submitted by Paul Fain on September 24, 2012 - 3:00am
The owners of the Hobby Lobby craft store chain on Friday announced that they would give a 217-acre former high school campus in western Massachusetts to the foundation for Grand Canyon University, a for-profit Christian institution. Grand Canyon will open a second on-ground campus at the site, adding to its growing campus in Phoenix and a relatively large online presence. The company hopes to enroll 5,000 students at the new campus by 2018, investing an estimated $150 million in it over five years.
Submitted by Paul Fain on September 13, 2012 - 3:00am
The U.S. House of Representatives this week passed legislation requiring the U.S. Department of Veterans Affairs to require more transparency from colleges that serve students who are veterans. The bill calls for counseling of students and ways to track feedback on the quality of academic programs. Some for-profit institutions, including the Association of Private Sector Colleges and Universities and the University of Phoenix, supported the bill.
The U.S. Justice Department announced last week that it is joining a whistle-blower lawsuit against ATI Enterprises Inc., which owns a chain of for-profit career colleges in Texas. State authorities have already revoked the licenses for some of the programs to operate. The government's complaint alleges that ATI misrepresented job placement statistics in order to keep state approval in place.
Further, the complaint states that that "ATI employees at the three campuses knowingly enrolled students who were ineligible because they did not have high school diplomas or recognized equivalents; falsified high school diplomas, including five Dallas Independent School District diplomas for students who later defaulted on their federal student loans; fraudulently kept students enrolled even though they should have been dropped because they had poor grades or attendance; and made knowing misrepresentations to students about their future employability. The alleged misrepresentations included telling students that a criminal record would not prevent them from getting jobs in their fields of study, quoting higher salaries than the students would be likely to earn and reporting inflated job placement statistics both to the students and the Texas Workforce Commission."
Submitted by Paul Fain on August 28, 2012 - 3:00am
Students who earn associate degrees from for-profit colleges see substantial earnings returns and, in some cases, outperform their peers who hold two-year degrees from community colleges, according to a new research paper from the National Bureau of Economic Research. However, students who drop out of two-year degree tracks at for-profits fare worse in the labor market than do their counterparts at community colleges, found the study, which was authored by Stephanie Riegg Cellini, an assistant professor of public policy at George Washington University, and Latika Chaudhary, an assistant professor of economics at Scripps College.
Submitted by Paul Fain on August 17, 2012 - 3:00am
A newly released poll of influential types, including lawmakers, gave President Obama better marks than Mitt Romney on education policy. The poll, which was conducted by Whiteboard Advisors, an education consulting firm, focused mostly on K-12 issues. However, it found that a Romney administration probably would not seek to substantially revise student aid policies. Respondents also said for-profit colleges should be somewhat concerned about a second term for Obama.