Federal Trade Commission is latest agency to pursue for-profits, announcing that online Ashworth College has settled over allegations of misrepresenting transfer credits and state licensure prerequisites to students.
SEC charges ITT and top two executives with fraud, alleging they misled investors about huge losses in lending programs. Embattled company asks regulators not to run with fraud allegations until the court rules on them.
The for-profit college says it's immediately ending operations at its remaining campuses, interrupting the studies of some 16,000 students and possibly sticking the government with a bill for discharged loans.
Half of Corinthian Colleges goes nonprofit, as loan guarantor ECMC will buy 56 Everest and WyoTech campuses. Critics say the purchase doesn't do nearly enough for students or to prevent conflicts of interest.