Quick Takes: Fines for Career Education, Mo. Plan to Sell Off Loan Assets Founders, Stanford Raises Contractor Wages, Smith Bans Sudan Investments

  • Career Education Corp. has paid the U.S.
  • May 9, 2006
  • Career Education Corp. has paid the U.S. Education Department about $500,000 in recent months to settle investigations into financial aid wrongdoing at campuses the company runs in Pennsylvania and Arizona, according to The Wall Street Journal. The newspaper said it had obtained records under the Freedom of Information Act showing the government had ordered Career Education to return about $469,000 in federal funds because it had failed to document that it had appropriately provided aid to students at its Pennsylvania Culinary Institute, in Pittsburgh, and that the company had paid the government another $23,000, without acknowledging wrongdoing, after an investigation into its practices at Collins College, in Tempe, Ariz.
  • Although Missouri's General Assembly failed to pass by Friday's deadline legislation that would have called for the state to distribute hundreds of millions of dollars to public institutions by selling off assets of the Missouri Higher Education Loan Authority, Gov. Matt Blunt may try to pursue the plan without legislative approval, The Columbia Daily Tribune reported. Missouri is one of several states that have been considering such an approach.
  • Stanford University announced Monday that it would require its contractors who hire employees to raise the minimum wages paid by about 10 percent. The increases were based on a review of wages of other employers in the area. The new minimum for employees who receive health benefits will be $11.15 an hour and the new minimum for those who do not receive health benefits will be $12.59 an hour.
  • Smith College has announced that it will ban investments in businesses that support the government of Sudan. Smith joins a number of other colleges taking similar steps to protest the genocide in Darfur. Two companies currently in Smith's endowment could be immediately affected by the policy, and the college will avoid other companies found to meet certain criteria.
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