About time. These colleges are like the banks that profited from subprime loans. These colleges push substandard education to students who are poorly suited for the courses offered and the colleges profit from the US govt student aid.
Another ill conceived deregulation that started in the GW Bush tenure:
"Incentive compensation was banned by the Education Department from 1992 until 2002, when the George W. Bush administration created safe harbors. The exceptions allowed the practice when recruiters werenât paid solely on the basis of enrollments. "
For-Profit Colleges May Lose Access to U.S. Aid Over Violations
http://www.bloomberg.com/news/2010-...y-lose-access-to-u-s-aid-over-violations.html
For-profit colleges that pay recruiters based on the number of students they sign up may lose access to U.S. government student aid, which provided the colleges with $26.5 billion last year and can account for as much as 90 percent of company revenue.
"For-profit colleges have come under growing scrutiny as Secretary Arne Duncan prepares tighter industry regulations and Senate and House committees examine how for-profit colleges mislead applicants, target veterans and register student default rates at least double those of traditional universities. Republicans are raising objections to tougher regulations as they prepare to take control of the House of Representatives in January.
Shares of Phoenix-based Apollo Group Inc. have declined 42 percent this year, through Nov. 19. An index of 13 education companies lost 32 percent during the same period."
Another ill conceived deregulation that started in the GW Bush tenure:
"Incentive compensation was banned by the Education Department from 1992 until 2002, when the George W. Bush administration created safe harbors. The exceptions allowed the practice when recruiters werenât paid solely on the basis of enrollments. "
For-Profit Colleges May Lose Access to U.S. Aid Over Violations
http://www.bloomberg.com/news/2010-...y-lose-access-to-u-s-aid-over-violations.html
For-profit colleges that pay recruiters based on the number of students they sign up may lose access to U.S. government student aid, which provided the colleges with $26.5 billion last year and can account for as much as 90 percent of company revenue.
"For-profit colleges have come under growing scrutiny as Secretary Arne Duncan prepares tighter industry regulations and Senate and House committees examine how for-profit colleges mislead applicants, target veterans and register student default rates at least double those of traditional universities. Republicans are raising objections to tougher regulations as they prepare to take control of the House of Representatives in January.
Shares of Phoenix-based Apollo Group Inc. have declined 42 percent this year, through Nov. 19. An index of 13 education companies lost 32 percent during the same period."
