U.S. Sen. Dick Durbin of Illinois, a key member of the Senate Democratic leadership, on Tuesday called for a number of reforms of federal laws that involve for-profit higher education, saying that they should share in the default risks of their students -- costs that are currently assumed by the taxpayers. “While responsible for-profit colleges offer a valuable alternative to students, there are too many schools taking advantage of students and making money hand over fist,” Durbin said at a forum he held in Chicago. “Some for-profit colleges are spending a quarter of their revenues on marketing and recruiting, and up to 90 percent of those revenues come from federal funding. We need to consider whether it is wise for companies to profit so handsomely on federal funding when the results don’t match the investment. And we need Congressional action to rein in abuses and ensure that taxpayer dollars are being wisely spent.” Durbin also proposed that accreditation rules be changed so that for-profit colleges can't obtain accreditation by purchasing accredited nonprofit colleges. And he said the for-profit colleges should be required to release more information about "real costs," job placement rates and other factors.
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