Submitted by Paul Fain on December 19, 2012 - 3:00am
The Accrediting Commission of Career Schools and Colleges, a national accrediting agency, has dropped an inquiry into 10 campuses owned by Career Education Corp., the for-profit higher education provider announced Tuesday. The accreditor had asked the company to "show cause" why the campuses should not have their accreditation withdrawn in the wake of Career Education's earlier acknowledgment that it lacked sufficient documentation for some job placement data. The campuses are now free to pursue new academic program approvals.
Submitted by Paul Fain on December 14, 2012 - 3:00am
John Sperling, who founded the Apollo Group and its University of Phoenix in 1972, will retire as executive chairman of the company's board of directors at the end of this month, Apollo announced today. His son, Peter Sperling, will take over as the board's chairman.
A federal district judge on Thursday upheld a bankruptcy court's ruling last summer that an accrediting agency had made false representations to the U.S. Education Department that helped lead to the demise of Decker College, a for-profit college that closed in 2005. The Council on Occupational Education had appealed the bankruptcy court's July 2012 decision to a federal district court in Kentucky, arguing that the bankruptcy judge had erred in concluding that the agency's officials had misled federal officials by reporting that Decker had delivered three of its programs online without the agency's approval. But Judge John G. Heyburn II's 13-page ruling said: "The bankruptcy court reasonably found COE to be dishonest when it told the department it did not approve the hybrid programs to be offered in such a manner."
British authorities have granted the for-profit College of Law university status, and the soon-to-be renamed University of Law will be the country's first for-profit university, Times Higher Education reported. The institution trains 7,000 students annually in both undergraduate and graduate programs.
Submitted by Paul Fain on November 9, 2012 - 3:00am
Career Education Corp. on Thursday announced that it would close 23 of 90 campuses and lay off 900 employees to cope with declining revenue and enrollment. The for-profit chain has been hit hard by what a company official called "new market realities," and has seen its total and new student numbers dip by roughly 22 percent compared to last year. It also reported an operating loss of $110 million for the year through October. The company is taking the "difficult step" of downsizing as part of a plan for a strategic turnaround as a "simplified and more nimble organization," said Steven H. Lesnik, its president and CEO, in a written statement. Career Education Corp. is also facing scrutiny from its accreditors.
Submitted by Paul Fain on November 6, 2012 - 3:00am
The U.S. Department of Education is questioning the "financial responsibility" of Corinthian Colleges based on the department's interpretation of the for-profit's estimated intangible assets, according to a corporate filing. If not resolved, the matter could lead to Corinthian losing its eligibility to participate in federal financial aid programs. The company said in a statement that it disagrees with the department's revised take on its assets. Representatives from Corinthian and the department will meet soon to discuss the issue.