Feds Announce New Protections Against For-Profit Schools That Leave Students With 'A Worthless Degree'
Feds Cancel $72 Million in Student Loans at For-Profit College That California Sued
The (For-Profit) School of Hard Knocks
What Happened to California’s Crackdown On For-Profit Colleges?
Concern for 'Defrauded and Victimized' Students Spurs Calls for Tighter For-Profit College Oversight
Betsy DeVos Won't Give Required Debt Relief to Defrauded Students, California Says
California's Top Cop: Trump Decision Could Rip Off Students
Legislation to Close Loophole in GI Bill College Aid Dies in Minutes
Attorney General Kamala Harris Sues For-Profit College Company
Sponsored
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On Wednesday, the U.S. Education Department announced new federal regulations that aim to hold for-profit colleges accountable for student outcomes.\u003c/p>\n\u003cp>“Higher education is supposed to be an invaluable investment in your future. There is nothing valuable about being ripped off or sold on a worthless degree,” Education Secretary Miguel Cardona said at a press briefing announcing the final rules.\u003c/p>\n\u003cp>The gainful employment rule is meant to safeguard students from making a bad investment at for-profit institutions and non-degree, certificate programs. If programs don’t earn their graduates adequate pay, or if graduates’ earnings are too low to afford their student loan payments, programs could lose access to federal money.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“Too often, students and parents navigate decisions without a clear picture of which schools offer the best value for your money,” Cardona said. “This rule would make sure students know they’re about to take out loans for programs known to leave graduates with unaffordable debt and poor career prospects.”\u003c/p>\n\u003cp>Starting next school year — July 1, 2024 — programs will have to demonstrate that graduates are able to afford their student debt payments and make more money than an adult in their state who didn’t go to college. If a program fails either of those metrics, students will get a warning before they take out federal student loans. If a program fails the same metric twice in a three-year period, it will lose eligibility to collect federal student aid money from students. The first year this could happen to a program is 2026.\u003c/p>\n\u003cp>[pullquote align=\"right\" size=\"medium\" citation=\"US Education Secretary Miguel Cardona\"]‘This rule would make sure students know they’re about to take out loans for programs known to leave graduates with unaffordable debt and poor career prospects.’[/pullquote]“Today’s action … is the strongest action ever taken by an administration to hold low-quality programs accountable,” says Carolyn Fast, the director of higher education at \u003ca href=\"https://tcf.org/content/report/for-profit-colleges-say-the-gainful-employment-rule-will-kill-access-dont-believe-them/\">The Century Foundation\u003c/a>. Fast was also involved in the rulemaking. “It steers students toward high-value programs and holds institutions accountable for what it is they should be doing: offering students quality education and preparing them for stable future careers.”\u003c/p>\n\u003cp>Data from the Education Department anticipates that about \u003ca href=\"https://www2.ed.gov/policy/highered/reg/hearulemaking/2021/gainful-employment-notice-of-final-review-factsheet.pdf\">1,700 programs will fail (PDF)\u003c/a> to meet the thresholds set forth in the rule. While many public and private nonprofit colleges offer non-degree programs, very few would fail, according to the department. Rather, many of the failed programs would be at for-profit schools.\u003c/p>\n\u003cp>The rule applies to all for-profit programs but doesn’t include bachelor’s degrees and most graduate programs at traditional public and nonprofit colleges. Critics of the rule \u003ca href=\"https://www.career.org/releases-and-statements/cecu-statement-on-gainful-employment-final-rule\">say that’s unfair\u003c/a>.\u003c/p>\n\u003cp>“Once again, the Department has rushed the process, overlooking critical issues, to hastily implement and weaponize a final Gainful Employment rule against for-profit institutions,” said Jason Altmire, president of Career Education Colleges and Universities, a national organization that represents for-profit colleges.\u003c/p>\n\u003cp>[aside postID=news_11773028,lowdown_17525,news_72575 label='For-Profit Colleges']Gainful employment first came to be a federal rule under the Obama administration in 2014. It \u003ca href=\"https://www.npr.org/sections/ed/2014/11/07/362069843/for-profit-colleges-sue-the-federal-government\">was met with legal challenges\u003c/a>, and when the Trump administration took over, former Secretary of Education \u003ca href=\"https://www.npr.org/sections/ed/2017/06/17/531930366/devos-rolls-back-for-profit-college-regs-harvards-president-to-step-down\">Betsy Devos \u003c/a>seriously delayed the rule and \u003ca href=\"https://www.nytimes.com/2019/06/28/us/politics/betsy-devos-for-profit-colleges.html\">later scrapped it all together\u003c/a>.\u003c/p>\n\u003cp>This spring, the Biden administration resuscitated the rule with an updated proposal that saw \u003ca href=\"https://www.regulations.gov/comment/ED-2023-OPE-0089-3073\">thousands of comments\u003c/a>, many from organizations related to the \u003ca href=\"https://www.regulations.gov/document/ED-2023-OPE-0089-0001/comment?filter=Cosmetology\">cosmetology industry\u003c/a>, which include schools that\u003ca href=\"https://www.nytimes.com/2018/12/26/business/cosmetology-school-debt-iowa.html\"> have historically struggled with favorable debt-to-earnings ratios\u003c/a>.\u003c/p>\n\u003cp>The new rule’s timeline may put it at odds with political headwinds: A lot could happen between now and 2026, when the first programs could lose eligibility to collect federal student aid — including a Republican winning back the White House.\u003c/p>\n\u003cp>The final rule will be published in the \u003cem>Federal Register\u003c/em> on Oct. 10.\u003c/p>\n\u003cp>\u003cem>Copyright 2023 NPR. To see more, visit \u003ca href=\"https://www.npr.org\">www.npr.org\u003c/a>.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"The Biden administration is cracking down on for-profit college programs that don't adequately prepare graduates and leave them with unaffordable loans. ","status":"publish","parent":0,"modified":1695926129,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":16,"wordCount":697},"headData":{"title":"Feds Announce New Protections Against For-Profit Schools That Leave Students With 'A Worthless Degree' | KQED","description":"The Biden administration is cracking down on for-profit college programs that don't adequately prepare graduates and leave them with unaffordable loans. ","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Feds Announce New Protections Against For-Profit Schools That Leave Students With 'A Worthless Degree'","datePublished":"2023-09-28T18:27:19.000Z","dateModified":"2023-09-28T18:35:29.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"nprImageCredit":"Chip Somodevilla","nprByline":"\u003ca href=\"https://www.npr.org/people/378865949/elissa-nadworny\">Elissa Nadworny \u003c/a>","nprImageAgency":"Getty Images","nprStoryId":"1202291883","nprApiLink":"http://api.npr.org/query?id=1202291883&apiKey=MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004","nprHtmlLink":"https://www.npr.org/2023/09/28/1202291883/for-profit-colleges-student-loans-affordable?ft=nprml&f=1202291883","nprRetrievedStory":"1","nprPubDate":"Thu, 28 Sep 2023 11:38:00 -0400","nprStoryDate":"Thu, 28 Sep 2023 11:38:48 -0400","nprLastModifiedDate":"Thu, 28 Sep 2023 11:38:48 -0400","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/11962723/feds-announce-new-protections-against-for-profit-schools-that-leave-students-with-a-worthless-degree","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>The Biden administration is cracking down on college programs that don’t adequately prepare graduates for gainful employment. On Wednesday, the U.S. Education Department announced new federal regulations that aim to hold for-profit colleges accountable for student outcomes.\u003c/p>\n\u003cp>“Higher education is supposed to be an invaluable investment in your future. There is nothing valuable about being ripped off or sold on a worthless degree,” Education Secretary Miguel Cardona said at a press briefing announcing the final rules.\u003c/p>\n\u003cp>The gainful employment rule is meant to safeguard students from making a bad investment at for-profit institutions and non-degree, certificate programs. If programs don’t earn their graduates adequate pay, or if graduates’ earnings are too low to afford their student loan payments, programs could lose access to federal money.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“Too often, students and parents navigate decisions without a clear picture of which schools offer the best value for your money,” Cardona said. “This rule would make sure students know they’re about to take out loans for programs known to leave graduates with unaffordable debt and poor career prospects.”\u003c/p>\n\u003cp>Starting next school year — July 1, 2024 — programs will have to demonstrate that graduates are able to afford their student debt payments and make more money than an adult in their state who didn’t go to college. If a program fails either of those metrics, students will get a warning before they take out federal student loans. If a program fails the same metric twice in a three-year period, it will lose eligibility to collect federal student aid money from students. The first year this could happen to a program is 2026.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘This rule would make sure students know they’re about to take out loans for programs known to leave graduates with unaffordable debt and poor career prospects.’","name":"pullquote","attributes":{"named":{"align":"right","size":"medium","citation":"US Education Secretary Miguel Cardona","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>“Today’s action … is the strongest action ever taken by an administration to hold low-quality programs accountable,” says Carolyn Fast, the director of higher education at \u003ca href=\"https://tcf.org/content/report/for-profit-colleges-say-the-gainful-employment-rule-will-kill-access-dont-believe-them/\">The Century Foundation\u003c/a>. Fast was also involved in the rulemaking. “It steers students toward high-value programs and holds institutions accountable for what it is they should be doing: offering students quality education and preparing them for stable future careers.”\u003c/p>\n\u003cp>Data from the Education Department anticipates that about \u003ca href=\"https://www2.ed.gov/policy/highered/reg/hearulemaking/2021/gainful-employment-notice-of-final-review-factsheet.pdf\">1,700 programs will fail (PDF)\u003c/a> to meet the thresholds set forth in the rule. While many public and private nonprofit colleges offer non-degree programs, very few would fail, according to the department. Rather, many of the failed programs would be at for-profit schools.\u003c/p>\n\u003cp>The rule applies to all for-profit programs but doesn’t include bachelor’s degrees and most graduate programs at traditional public and nonprofit colleges. Critics of the rule \u003ca href=\"https://www.career.org/releases-and-statements/cecu-statement-on-gainful-employment-final-rule\">say that’s unfair\u003c/a>.\u003c/p>\n\u003cp>“Once again, the Department has rushed the process, overlooking critical issues, to hastily implement and weaponize a final Gainful Employment rule against for-profit institutions,” said Jason Altmire, president of Career Education Colleges and Universities, a national organization that represents for-profit colleges.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"news_11773028,lowdown_17525,news_72575","label":"For-Profit Colleges "},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Gainful employment first came to be a federal rule under the Obama administration in 2014. It \u003ca href=\"https://www.npr.org/sections/ed/2014/11/07/362069843/for-profit-colleges-sue-the-federal-government\">was met with legal challenges\u003c/a>, and when the Trump administration took over, former Secretary of Education \u003ca href=\"https://www.npr.org/sections/ed/2017/06/17/531930366/devos-rolls-back-for-profit-college-regs-harvards-president-to-step-down\">Betsy Devos \u003c/a>seriously delayed the rule and \u003ca href=\"https://www.nytimes.com/2019/06/28/us/politics/betsy-devos-for-profit-colleges.html\">later scrapped it all together\u003c/a>.\u003c/p>\n\u003cp>This spring, the Biden administration resuscitated the rule with an updated proposal that saw \u003ca href=\"https://www.regulations.gov/comment/ED-2023-OPE-0089-3073\">thousands of comments\u003c/a>, many from organizations related to the \u003ca href=\"https://www.regulations.gov/document/ED-2023-OPE-0089-0001/comment?filter=Cosmetology\">cosmetology industry\u003c/a>, which include schools that\u003ca href=\"https://www.nytimes.com/2018/12/26/business/cosmetology-school-debt-iowa.html\"> have historically struggled with favorable debt-to-earnings ratios\u003c/a>.\u003c/p>\n\u003cp>The new rule’s timeline may put it at odds with political headwinds: A lot could happen between now and 2026, when the first programs could lose eligibility to collect federal student aid — including a Republican winning back the White House.\u003c/p>\n\u003cp>The final rule will be published in the \u003cem>Federal Register\u003c/em> on Oct. 10.\u003c/p>\n\u003cp>\u003cem>Copyright 2023 NPR. To see more, visit \u003ca href=\"https://www.npr.org\">www.npr.org\u003c/a>.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11962723/feds-announce-new-protections-against-for-profit-schools-that-leave-students-with-a-worthless-degree","authors":["byline_news_11962723"],"categories":["news_18540","news_8"],"tags":["news_20013","news_2924","news_717","news_33263","news_30899"],"affiliates":["news_253"],"featImg":"news_11962724","label":"news_253"},"news_11959751":{"type":"posts","id":"news_11959751","meta":{"index":"posts_1591205157","site":"news","id":"11959751","score":null,"sort":[1693514696000]},"guestAuthors":[],"slug":"feds-cancel-72-million-in-student-loans-at-for-profit-college-that-california-sued","title":"Feds Cancel $72 Million in Student Loans at For-Profit College That California Sued","publishDate":1693514696,"format":"standard","headTitle":"Feds Cancel $72 Million in Student Loans at For-Profit College That California Sued | KQED","labelTerm":{"site":"news"},"content":"\u003cp>The Biden administration is canceling $72 million in student loans for 2,300 borrowers who say they were cheated by Ashford University, a former for-profit college that was purchased by the University of Arizona in 2020.\u003c/p>\n\u003cp>The U.S. Department of Education announced the action Wednesday, saying it will seek to recoup the money from the University of Arizona.[aside postID=news_11773028]The university denies any liability, saying in a statement that it had “absolutely no involvement in, and is not directly or indirectly responsible for, the actions of Ashford and its parent company” and will be “assessing its options.”\u003c/p>\n\u003cp>Before its sale, Ashford was an online for-profit college that enrolled more than 100,000 students. It was owned by the company Zovio and based in San Diego.\u003c/p>\n\u003cp>A California court in 2022 found that Ashford frequently lied to students to get them to enroll. Its recruiters misled students about the college’s accreditation, costs and the amount of time it would take to graduate, the court concluded.\u003c/p>\n\u003cp>That lawsuit, brought by the state of California, was the basis of the Education Department’s cancellation.\u003c/p>\n\u003cp>President Joe Biden said his administration “won’t stand for colleges taking advantage of hardworking students and borrowers.”\u003c/p>\n\u003cp>“These borrowers were lied to about the cost of attending Ashford, were misled about how long it would take to get a degree, and were deceived about the transferability of Ashford credits,” Biden said in a statement. “They deserve better.”[pullquote align=\"right\" size=\"medium\" citation=\"President Joe Biden\"]‘These borrowers were lied to about the cost of attending Ashford, were misled about how long it would take to get a degree, and were deceived about the transferability of Ashford credits. … They deserve better.’[/pullquote]The action will automatically discharge loans for 2,300 borrowers who attended Ashford from March 2009 through April 2020 and applied for cancellation through the Education Department’s borrower defense program. Those borrowers will see their loan balances zeroed out, and they will be refunded for payments on their federal loans.\u003c/p>\n\u003cp>California Attorney General Rob Bonta encouraged other former Ashford students to apply for relief if they were deceived.\u003c/p>\n\u003cp>“What Ashford University did to its students was unconscionable and illegal,” Bonta said. “That’s why the California Department of Justice took Ashford and its parent company to court.”\u003c/p>\n\u003cp>Under its previous ownership, Ashford’s recruiters told students they would be able to work as teachers, social workers, nurses and drug and alcohol counselors, but the school never got accreditation for those professions, according to California’s lawsuit.\u003c/p>\n\u003cp>Recruiters also told potential students they would never face out-of-pocket costs, which wasn’t always true, and they boasted about “accelerated” programs, even though the bachelor’s degree programs were structured to take five years to finish, the suit said.\u003c/p>\n\u003cp>Only 25% of Ashford students graduated within eight years of enrolling.[aside postID=news_11955675]The court ruled in favor of California in 2022 after an 18-day trial and imposed a civil penalty of $22.3 million against Ashford. The penalty is being appealed.\u003c/p>\n\u003cp>The University of Arizona purchased Ashford University in 2020 and turned it into an online branch of the school, changing its name to the University of Arizona Global Campus.\u003c/p>\n\u003cp>It’s one of several for-profit colleges that have been purchased and absorbed by nonprofit universities, including Purdue University’s purchase of Kaplan University, and the University of Idaho’s purchase of the University of Phoenix, which is expected to be finalized next year.\u003c/p>\n\u003cp>The Biden administration is separately taking steps to propose widespread student debt cancellation after \u003ca href=\"https://www.kqed.org/news/11955675/how-to-navigate-student-loans-affirmative-action-scotus\">the Supreme Court rejected the president’s previous proposal in June\u003c/a>. The Education Department is gathering negotiators for a rulemaking process that will get underway in October.\u003c/p>\n\u003cp>The department said it plans to issue a final rule on cancellation sometime next year.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"The Biden administration is canceling student loans for 2,300 borrowers at Ashford University, a former for-profit college that was sued by the state of California in 2022 over what they said were fraudulent practices.","status":"publish","parent":0,"modified":1693514696,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":18,"wordCount":677},"headData":{"title":"Feds Cancel $72 Million in Student Loans at For-Profit College That California Sued | KQED","description":"The Biden administration is canceling student loans for 2,300 borrowers at Ashford University, a former for-profit college that was sued by the state of California in 2022 over what they said were fraudulent practices.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Feds Cancel $72 Million in Student Loans at For-Profit College That California Sued","datePublished":"2023-08-31T20:44:56.000Z","dateModified":"2023-08-31T20:44:56.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"nprByline":"Collin Binkley\u003cbr>The Associated Press","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/11959751/feds-cancel-72-million-in-student-loans-at-for-profit-college-that-california-sued","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>The Biden administration is canceling $72 million in student loans for 2,300 borrowers who say they were cheated by Ashford University, a former for-profit college that was purchased by the University of Arizona in 2020.\u003c/p>\n\u003cp>The U.S. Department of Education announced the action Wednesday, saying it will seek to recoup the money from the University of Arizona.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"news_11773028","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>The university denies any liability, saying in a statement that it had “absolutely no involvement in, and is not directly or indirectly responsible for, the actions of Ashford and its parent company” and will be “assessing its options.”\u003c/p>\n\u003cp>Before its sale, Ashford was an online for-profit college that enrolled more than 100,000 students. It was owned by the company Zovio and based in San Diego.\u003c/p>\n\u003cp>A California court in 2022 found that Ashford frequently lied to students to get them to enroll. Its recruiters misled students about the college’s accreditation, costs and the amount of time it would take to graduate, the court concluded.\u003c/p>\n\u003cp>That lawsuit, brought by the state of California, was the basis of the Education Department’s cancellation.\u003c/p>\n\u003cp>President Joe Biden said his administration “won’t stand for colleges taking advantage of hardworking students and borrowers.”\u003c/p>\n\u003cp>“These borrowers were lied to about the cost of attending Ashford, were misled about how long it would take to get a degree, and were deceived about the transferability of Ashford credits,” Biden said in a statement. “They deserve better.”\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘These borrowers were lied to about the cost of attending Ashford, were misled about how long it would take to get a degree, and were deceived about the transferability of Ashford credits. … They deserve better.’","name":"pullquote","attributes":{"named":{"align":"right","size":"medium","citation":"President Joe Biden","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>The action will automatically discharge loans for 2,300 borrowers who attended Ashford from March 2009 through April 2020 and applied for cancellation through the Education Department’s borrower defense program. Those borrowers will see their loan balances zeroed out, and they will be refunded for payments on their federal loans.\u003c/p>\n\u003cp>California Attorney General Rob Bonta encouraged other former Ashford students to apply for relief if they were deceived.\u003c/p>\n\u003cp>“What Ashford University did to its students was unconscionable and illegal,” Bonta said. “That’s why the California Department of Justice took Ashford and its parent company to court.”\u003c/p>\n\u003cp>Under its previous ownership, Ashford’s recruiters told students they would be able to work as teachers, social workers, nurses and drug and alcohol counselors, but the school never got accreditation for those professions, according to California’s lawsuit.\u003c/p>\n\u003cp>Recruiters also told potential students they would never face out-of-pocket costs, which wasn’t always true, and they boasted about “accelerated” programs, even though the bachelor’s degree programs were structured to take five years to finish, the suit said.\u003c/p>\n\u003cp>Only 25% of Ashford students graduated within eight years of enrolling.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"news_11955675","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>The court ruled in favor of California in 2022 after an 18-day trial and imposed a civil penalty of $22.3 million against Ashford. The penalty is being appealed.\u003c/p>\n\u003cp>The University of Arizona purchased Ashford University in 2020 and turned it into an online branch of the school, changing its name to the University of Arizona Global Campus.\u003c/p>\n\u003cp>It’s one of several for-profit colleges that have been purchased and absorbed by nonprofit universities, including Purdue University’s purchase of Kaplan University, and the University of Idaho’s purchase of the University of Phoenix, which is expected to be finalized next year.\u003c/p>\n\u003cp>The Biden administration is separately taking steps to propose widespread student debt cancellation after \u003ca href=\"https://www.kqed.org/news/11955675/how-to-navigate-student-loans-affirmative-action-scotus\">the Supreme Court rejected the president’s previous proposal in June\u003c/a>. The Education Department is gathering negotiators for a rulemaking process that will get underway in October.\u003c/p>\n\u003cp>The department said it plans to issue a final rule on cancellation sometime next year.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11959751/feds-cancel-72-million-in-student-loans-at-for-profit-college-that-california-sued","authors":["byline_news_11959751"],"categories":["news_8"],"tags":["news_2924","news_717","news_3674","news_32071","news_30899","news_25523"],"featImg":"news_11959764","label":"news"},"news_11791185":{"type":"posts","id":"news_11791185","meta":{"index":"posts_1591205157","site":"news","id":"11791185","score":null,"sort":[1576281400000]},"guestAuthors":[],"slug":"the-for-profit-school-of-hard-knocks","title":"The (For-Profit) School of Hard Knocks","publishDate":1576281400,"format":"standard","headTitle":"Mark Fiore: Drawn to the Bay | KQED News","labelTerm":{"term":18515,"site":"news"},"content":"\u003cp>U.S. Education Secretary Betsy DeVos wants defrauded student borrowers to \u003ca href=\"http://bit.ly/fioredevosdefraud\" target=\"_blank\" rel=\"noopener noreferrer\">still be on the hook\u003c/a> for student loans.\u003c/p>\n\u003cp>It's no secret that DeVos \u003ca href=\"https://www.americanprogress.org/issues/education-postsecondary/news/2017/01/27/297572/inside-the-financial-holdings-of-billionaire-betsy-devos/\" target=\"_blank\" rel=\"noopener noreferrer\">has a thing\u003c/a> for \u003ca href=\"https://www.washingtonpost.com/local/education/betsy-devos-to-the-rescue-for-profit-colleges-see-a-savior-in-secretary/2018/11/23/55066cfe-d3cb-11e8-8c22-fa2ef74bd6d6_story.html\" target=\"_blank\" rel=\"noopener noreferrer\">for-profit colleges\u003c/a>, but her current argument seems particularly cruel.\u003c/p>\n\u003cp>Her reasoning apparently goes like this: Even if you have a worthless diploma from a shady for-profit college that lied to you – if you are currently making money in any kind of job – you still have to pay back those loans for a fraudulent education since you must have gotten \u003cem>something\u003c/em> out of it.\u003c/p>\n\u003cp>. . . Or words to that effect.\u003c/p>\n\u003cp>Never mind that her own Department of Education seems to \u003ca href=\"https://www.kqed.org/news/11790670/betsy-devos-overruled-education-department-findings-on-defrauded-student-borrowers\" target=\"_blank\" rel=\"noopener noreferrer\">disagree with her\u003c/a>.\u003c/p>\n\u003cp>Keep in mind DeVos was appointed to her position by the namesake of Trump University, which paid a \u003ca href=\"https://www.npr.org/sections/thetwo-way/2017/03/31/522199535/judge-approves-25-million-settlement-of-trump-university-lawsuit\" target=\"_blank\" rel=\"noopener noreferrer\">$25 million settlement\u003c/a> to students who alleged they were defrauded by the for-profit \"university\" that sold real estate seminars.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"U.S. Education Secretary Betsy DeVos wants defrauded student borrowers to still be on the hook for student loans.","status":"publish","parent":0,"modified":1576281400,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":8,"wordCount":154},"headData":{"title":"The (For-Profit) School of Hard Knocks | KQED","description":"U.S. Education Secretary Betsy DeVos wants defrauded student borrowers to still be on the hook for student loans.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"The (For-Profit) School of Hard Knocks","datePublished":"2019-12-13T23:56:40.000Z","dateModified":"2019-12-13T23:56:40.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11791185 https://ww2.kqed.org/news/?p=11791185","disqusUrl":"https://ww2.kqed.org/news/2019/12/13/the-for-profit-school-of-hard-knocks/","disqusTitle":"The (For-Profit) School of Hard Knocks","path":"/news/11791185/the-for-profit-school-of-hard-knocks","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>U.S. Education Secretary Betsy DeVos wants defrauded student borrowers to \u003ca href=\"http://bit.ly/fioredevosdefraud\" target=\"_blank\" rel=\"noopener noreferrer\">still be on the hook\u003c/a> for student loans.\u003c/p>\n\u003cp>It's no secret that DeVos \u003ca href=\"https://www.americanprogress.org/issues/education-postsecondary/news/2017/01/27/297572/inside-the-financial-holdings-of-billionaire-betsy-devos/\" target=\"_blank\" rel=\"noopener noreferrer\">has a thing\u003c/a> for \u003ca href=\"https://www.washingtonpost.com/local/education/betsy-devos-to-the-rescue-for-profit-colleges-see-a-savior-in-secretary/2018/11/23/55066cfe-d3cb-11e8-8c22-fa2ef74bd6d6_story.html\" target=\"_blank\" rel=\"noopener noreferrer\">for-profit colleges\u003c/a>, but her current argument seems particularly cruel.\u003c/p>\n\u003cp>Her reasoning apparently goes like this: Even if you have a worthless diploma from a shady for-profit college that lied to you – if you are currently making money in any kind of job – you still have to pay back those loans for a fraudulent education since you must have gotten \u003cem>something\u003c/em> out of it.\u003c/p>\n\u003cp>. . . Or words to that effect.\u003c/p>\n\u003cp>Never mind that her own Department of Education seems to \u003ca href=\"https://www.kqed.org/news/11790670/betsy-devos-overruled-education-department-findings-on-defrauded-student-borrowers\" target=\"_blank\" rel=\"noopener noreferrer\">disagree with her\u003c/a>.\u003c/p>\n\u003cp>Keep in mind DeVos was appointed to her position by the namesake of Trump University, which paid a \u003ca href=\"https://www.npr.org/sections/thetwo-way/2017/03/31/522199535/judge-approves-25-million-settlement-of-trump-university-lawsuit\" target=\"_blank\" rel=\"noopener noreferrer\">$25 million settlement\u003c/a> to students who alleged they were defrauded by the for-profit \"university\" that sold real estate seminars.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11791185/the-for-profit-school-of-hard-knocks","authors":["3236"],"series":["news_18515"],"categories":["news_18540","news_6188","news_8","news_13"],"tags":["news_20504","news_2924","news_25423","news_20949","news_20704","news_25523","news_21567"],"featImg":"news_11791199","label":"news_18515"},"news_11773028":{"type":"posts","id":"news_11773028","meta":{"index":"posts_1591205157","site":"news","id":"11773028","score":null,"sort":[1567979140000]},"guestAuthors":[],"slug":"what-happened-to-californias-crackdown-on-for-profit-colleges","title":"What Happened to California’s Crackdown On For-Profit Colleges?","publishDate":1567979140,"format":"standard","headTitle":"KQED News","labelTerm":{},"content":"\u003cp>Just a few months ago, California’s Democratic-controlled legislature seemed poised to pass the nation’s toughest restrictions on for-profit colleges. School owners publicly fretted that they’d have to shut down.\u003c/p>\n\u003cp>Supporters of the seven-bill package, which sailed through the Assembly, hoped California could help close a gap in oversight as the Trump administration has backed away from policing quality in a sector that relies heavily on public money but has been plagued by fraud and poor outcomes. But as the legislative session draws to a close, nearly all of the bills have died or been significantly weakened, felled by a costly lobbying blitz and the complexity of crafting a state-based solution to a nationwide challenge.\u003c/p>\n\u003cp>Their demise marks a victory for an industry that has been plagued by scandals and school closures in recent years — and a setback for consumer and veterans groups that supported the legislation.\u003c/p>\n\u003cp>“The experience we’ve had moving this package forward highlights the role of money and what that buys as far as influence in the Capitol and in state capitols around the country,” said Assemblyman David Chiu, a San Francisco Democrat.\u003c/p>\n\u003cp>Chiu’s bill would have conditioned the right of career education programs to enroll Californians on proof that their graduates earn enough to pay back their student loans. It’s a version of the so-called “\u003ca href=\"https://calmatters.org/blogs/2019/04/california-gainful-employment-for-profit-colleges-veterans/\" target=\"_blank\" rel=\"noopener\">gainful employment\u003c/a>” rule created under President Barack Obama and repealed by the Trump administration.\u003c/p>\n\u003cp>\u003cimg class=\"size-full wp-image-11773053 aligncenter\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/09/FOR-PROFIT-COLLEGE-graphic.jpg\" alt=\"\" width=\"700\" height=\"1831\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2019/09/FOR-PROFIT-COLLEGE-graphic.jpg 700w, https://ww2.kqed.org/app/uploads/sites/10/2019/09/FOR-PROFIT-COLLEGE-graphic-160x419.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2019/09/FOR-PROFIT-COLLEGE-graphic-459x1200.jpg 459w\" sizes=\"(max-width: 700px) 100vw, 700px\">\u003c/p>\n\u003cp>Other bills would have limited how much for-profit schools can rely on federal and state financial aid, prevented admissions staff from earning bonuses based on how many students they recruit and cracked down on colleges that officially convert to non-profit status but turn most of their earnings over to a profit-driven management company. The bills’ authors said they were meant to root out fraud and abuse in the industry, while allowing good schools to thrive.\u003c/p>\n\u003cp>But many schools saw the legislation as an existential threat and spent heavily to defeat it. For-profit colleges, vocational schools and online education companies poured more than $800,000 into lobbying California legislators in the first six months of 2019.\u003c/p>\n\u003cp>That’s nearly the same amount of lobbying cash that Pacific Gas & Electric spent defending its role in the \u003ca href=\"https://www.kqed.org/news/tag/pge\" target=\"_blank\" rel=\"noopener\">state’s wildfire crisis\u003c/a> over the same period — and more than four times the money spent by the consumer and veterans groups backing the for-profit college bills.\u003c/p>\n\u003cp>[aside postID=mindshift_54347,news_11767050 label=\"Higher Education in California\"]\u003c/p>\n\u003cp>“The sector is under a sustained assault by certain individuals and we don’t expect them to stop,” the \u003ca href=\"https://www.cappsonline.org/\" target=\"_blank\" rel=\"noopener\">California Association of Private Postsecondary Schools\u003c/a>, an industry association, wrote in an email to members about the bills, which it dubbed “The Terrible 7.”\u003c/p>\n\u003cp>The association’s lobbying muscle was on display during the bills’ first hearing in April. While former students and recruiters at for-profit colleges testified about the schools’ aggressive recruiting tactics, dozens of current students opposed to the bills flooded the halls outside the hearing room, some wearing scrubs and nametags that read simply, ‘Student.’\u003c/p>\n\u003cp>A few spoke passionately about receiving a quality education at a for-profit college. Patricia Stanley, a Navy veteran, said that she chose the occupational therapy program at Stanbridge University for its small class size and “family feel.”\u003c/p>\n\u003cp>“We aren’t forced or persuaded or preyed upon,” Stanley said. “We definitely made the choice and sought out these schools.”\u003c/p>\n\u003cp>Other students, however, said they attended the hearing because school officials asked them to, and had told them that they would lose their financial aid if the bills passed. CAPPS president Robert Johnson did not respond to messages requesting comment about the association’s lobbying efforts.\u003c/p>\n\u003cp>Tens of thousands of dollars in campaign contributions also flowed from for-profit colleges to the Democratic Party and lawmakers that would make decisions on the bills. ICEPAC, the association’s political action committee, invited donors to a $1,000-a-head April fundraiser at the sleek Sawyer Hotel for the reelection campaign of Senate Education Committee chair Connie Leyva.\u003c/p>\n\u003cp>[pullquote size='medium' align='right' citation='Patricia Stanley, a Navy veteran']'We aren’t forced or persuaded or preyed upon,' Stanley said. 'We definitely made the choice and sought out these schools.'[/pullquote]\u003c/p>\n\u003cp>Just days before the Senate Education and Business, Professions and Economic Development committees were set to vote on the bills, one vocational college chain donated to the campaigns of Leyva, Business and Professions chair Steve Glazer, and five other senators who sat on the committees, in five cases contributing the maximum allowable under state law.\u003c/p>\n\u003cp>Glazer’s committee went on to convey concerns to two of the bills’ authors. One withdrew her bill and the other made significant changes. Leyva’s committee approved that bill.\u003c/p>\n\u003cp>Glazer’s chief of staff, Dan Weintraub, said the senator’s decisions “were driven by the facts and his concerns for the students who are enrolling or considering enrolling in this kind of a program, and nothing else.” A Leyva spokesperson said that “no contribution influences Senator Leyva’s decisions,” adding that Leyva “also strictly follows all fundraising reporting requirements.”\u003c/p>\n\u003cp>But Ramond Curtis, the state policy manager for the advocacy group \u003ca href=\"https://vetsedsuccess.org/\" target=\"_blank\" rel=\"noopener\">Veterans Education Success\u003c/a>, said he felt outgunned. His group supported \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB1343\" target=\"_blank\" rel=\"noopener\">Assembly Bill 1343\u003c/a> by Asm. Susan Eggman, aimed at closing a loophole in federal law that lets for-profit colleges subsist almost entirely on public financial aid dollars if the money includes military education benefits. Lowering the ceiling on financial aid to 85% of revenue and including GI Bill funds, many veterans groups believed, would remove an incentive for schools to target service members with predatory recruiting.\u003c/p>\n\u003cp>But like other groups supporting the bill, Veterans Education Success is tax-exempt, does not make political contributions and spends little on lobbying. “We’re dealing with an issue of resources,” Curtis said. “We don’t have the money to oppose them.”\u003c/p>\n\u003cp>Schools had argued that to comply with the financial aid cap in Eggman’s bill, they’d either have to raise tuition or shut down. Committee chair Sen. Glazer shared that fear, said Weintraub.\u003c/p>\n\u003cp>“He believes that there were unintended consequences in AB 1343 which actually could have hurt the veterans that the bill was trying to help,” Weintraub said.\u003c/p>\n\u003cp>Chiu’s gainful employment bill was also amended: Schools would have to report information on their graduates’ earnings and debt levels, but those with high debt-to-income ratios wouldn’t be barred from operating. Three more of the for-profit college oversight bills later quietly perished in the Senate Appropriations committee.\u003c/p>\n\u003cp>The bills were hamstrung in part by a legacy of problems at the state agency charged with overseeing for-profit colleges. CalMatters \u003ca href=\"https://calmatters.org/education/2018/10/california-for-profit-colleges-investigation/\" target=\"_blank\" rel=\"noopener\">reported last year\u003c/a> that the Bureau for Private Postsecondary Education was sitting on a backlog of nearly 1,200 unresolved student complaints, and inspecting schools less than half as often as it was required to by law.\u003c/p>\n\u003cp>Since then, the bureau says that it has hired more investigators to handle the complaints, shrinking the average caseload from 77 cases to about 20. But its outdated computer system — scheduled to be replaced in 2021 — still cannot perform basic functions such as tracking the status of complaints. A bill analysis found that putting the bureau in charge of enforcing the gainful employment standard would cost $12 million, an increase of more than 50% to the agency’s budget.\u003c/p>\n\u003cp>Glazer doubted the bureau’s capacity to “gather all that data and compare it with wage data, and to do that in a high stakes environment,” Weintraub said.\u003c/p>\n\u003cp>The bills’ fate points to a dilemma faced by consumer advocates who want to tighten state-level oversight of for-profit colleges in response to U.S. Education Secretary Betsy DeVos’s laissez-faire approach. State officials in Washington, Oregon, Massachusetts and New York are considering such measures. But states lack the budget of the federal government, and most haven’t developed an infrastructure to effectively monitor schools.\u003c/p>\n\u003cp>“This is a moment where state attorney generals and legislatures are saying, ‘What can we do for consumer protection within our own state?’” said Howard Lurie, a higher education analyst with the research firm Eduventures.\u003c/p>\n\u003cp>California legislators could take up that question again when the bureau undergoes a review of its performance next year.\u003c/p>\n\u003cp>In the meantime, Chiu hopes that gathering information on which for-profit vocational programs effectively prepare graduates for careers will help students make better decisions, and regulators identify red flags. His bill is scheduled for a vote on the Senate floor sometime next week.\u003c/p>\n\u003cp>“Our hope is the data will give us a road map to address bad apples in the for-profit world in the near future,” Chiu said. “We’ll have a pretty good sense of how many schools are failing our students and who they are.”\u003c/p>\n\u003cp>\u003ci>This story and other higher education coverage are supported by the College Futures Foundation.\u003c/i>\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://calmatters.org/\" target=\"_blank\" rel=\"noopener\">CalMatters.org\u003c/a> is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/em>\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"For-profit colleges, vocational schools and online education companies poured more than $800,000 into lobbying California legislators in the first six months of 2019.","status":"publish","parent":0,"modified":1567979140,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":37,"wordCount":1589},"headData":{"title":"What Happened to California’s Crackdown On For-Profit Colleges? | KQED","description":"For-profit colleges, vocational schools and online education companies poured more than $800,000 into lobbying California legislators in the first six months of 2019.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"What Happened to California’s Crackdown On For-Profit Colleges?","datePublished":"2019-09-08T21:45:40.000Z","dateModified":"2019-09-08T21:45:40.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11773028 https://ww2.kqed.org/news/?p=11773028","disqusUrl":"https://ww2.kqed.org/news/2019/09/08/what-happened-to-californias-crackdown-on-for-profit-colleges/","disqusTitle":"What Happened to California’s Crackdown On For-Profit Colleges?","source":"CalMatters","sourceUrl":"https://calmatters.org/","nprByline":"\u003ca href=\"https://calmatters.org/author/feliciacalmatters-org/\">Felicia Mello\u003c/a>","path":"/news/11773028/what-happened-to-californias-crackdown-on-for-profit-colleges","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Just a few months ago, California’s Democratic-controlled legislature seemed poised to pass the nation’s toughest restrictions on for-profit colleges. School owners publicly fretted that they’d have to shut down.\u003c/p>\n\u003cp>Supporters of the seven-bill package, which sailed through the Assembly, hoped California could help close a gap in oversight as the Trump administration has backed away from policing quality in a sector that relies heavily on public money but has been plagued by fraud and poor outcomes. But as the legislative session draws to a close, nearly all of the bills have died or been significantly weakened, felled by a costly lobbying blitz and the complexity of crafting a state-based solution to a nationwide challenge.\u003c/p>\n\u003cp>Their demise marks a victory for an industry that has been plagued by scandals and school closures in recent years — and a setback for consumer and veterans groups that supported the legislation.\u003c/p>\n\u003cp>“The experience we’ve had moving this package forward highlights the role of money and what that buys as far as influence in the Capitol and in state capitols around the country,” said Assemblyman David Chiu, a San Francisco Democrat.\u003c/p>\n\u003cp>Chiu’s bill would have conditioned the right of career education programs to enroll Californians on proof that their graduates earn enough to pay back their student loans. It’s a version of the so-called “\u003ca href=\"https://calmatters.org/blogs/2019/04/california-gainful-employment-for-profit-colleges-veterans/\" target=\"_blank\" rel=\"noopener\">gainful employment\u003c/a>” rule created under President Barack Obama and repealed by the Trump administration.\u003c/p>\n\u003cp>\u003cimg class=\"size-full wp-image-11773053 aligncenter\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/09/FOR-PROFIT-COLLEGE-graphic.jpg\" alt=\"\" width=\"700\" height=\"1831\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2019/09/FOR-PROFIT-COLLEGE-graphic.jpg 700w, https://ww2.kqed.org/app/uploads/sites/10/2019/09/FOR-PROFIT-COLLEGE-graphic-160x419.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2019/09/FOR-PROFIT-COLLEGE-graphic-459x1200.jpg 459w\" sizes=\"(max-width: 700px) 100vw, 700px\">\u003c/p>\n\u003cp>Other bills would have limited how much for-profit schools can rely on federal and state financial aid, prevented admissions staff from earning bonuses based on how many students they recruit and cracked down on colleges that officially convert to non-profit status but turn most of their earnings over to a profit-driven management company. The bills’ authors said they were meant to root out fraud and abuse in the industry, while allowing good schools to thrive.\u003c/p>\n\u003cp>But many schools saw the legislation as an existential threat and spent heavily to defeat it. For-profit colleges, vocational schools and online education companies poured more than $800,000 into lobbying California legislators in the first six months of 2019.\u003c/p>\n\u003cp>That’s nearly the same amount of lobbying cash that Pacific Gas & Electric spent defending its role in the \u003ca href=\"https://www.kqed.org/news/tag/pge\" target=\"_blank\" rel=\"noopener\">state’s wildfire crisis\u003c/a> over the same period — and more than four times the money spent by the consumer and veterans groups backing the for-profit college bills.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"mindshift_54347,news_11767050","label":"Higher Education in California "},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“The sector is under a sustained assault by certain individuals and we don’t expect them to stop,” the \u003ca href=\"https://www.cappsonline.org/\" target=\"_blank\" rel=\"noopener\">California Association of Private Postsecondary Schools\u003c/a>, an industry association, wrote in an email to members about the bills, which it dubbed “The Terrible 7.”\u003c/p>\n\u003cp>The association’s lobbying muscle was on display during the bills’ first hearing in April. While former students and recruiters at for-profit colleges testified about the schools’ aggressive recruiting tactics, dozens of current students opposed to the bills flooded the halls outside the hearing room, some wearing scrubs and nametags that read simply, ‘Student.’\u003c/p>\n\u003cp>A few spoke passionately about receiving a quality education at a for-profit college. Patricia Stanley, a Navy veteran, said that she chose the occupational therapy program at Stanbridge University for its small class size and “family feel.”\u003c/p>\n\u003cp>“We aren’t forced or persuaded or preyed upon,” Stanley said. “We definitely made the choice and sought out these schools.”\u003c/p>\n\u003cp>Other students, however, said they attended the hearing because school officials asked them to, and had told them that they would lose their financial aid if the bills passed. CAPPS president Robert Johnson did not respond to messages requesting comment about the association’s lobbying efforts.\u003c/p>\n\u003cp>Tens of thousands of dollars in campaign contributions also flowed from for-profit colleges to the Democratic Party and lawmakers that would make decisions on the bills. ICEPAC, the association’s political action committee, invited donors to a $1,000-a-head April fundraiser at the sleek Sawyer Hotel for the reelection campaign of Senate Education Committee chair Connie Leyva.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"'We aren’t forced or persuaded or preyed upon,' Stanley said. 'We definitely made the choice and sought out these schools.'","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Patricia Stanley, a Navy veteran","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Just days before the Senate Education and Business, Professions and Economic Development committees were set to vote on the bills, one vocational college chain donated to the campaigns of Leyva, Business and Professions chair Steve Glazer, and five other senators who sat on the committees, in five cases contributing the maximum allowable under state law.\u003c/p>\n\u003cp>Glazer’s committee went on to convey concerns to two of the bills’ authors. One withdrew her bill and the other made significant changes. Leyva’s committee approved that bill.\u003c/p>\n\u003cp>Glazer’s chief of staff, Dan Weintraub, said the senator’s decisions “were driven by the facts and his concerns for the students who are enrolling or considering enrolling in this kind of a program, and nothing else.” A Leyva spokesperson said that “no contribution influences Senator Leyva’s decisions,” adding that Leyva “also strictly follows all fundraising reporting requirements.”\u003c/p>\n\u003cp>But Ramond Curtis, the state policy manager for the advocacy group \u003ca href=\"https://vetsedsuccess.org/\" target=\"_blank\" rel=\"noopener\">Veterans Education Success\u003c/a>, said he felt outgunned. His group supported \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB1343\" target=\"_blank\" rel=\"noopener\">Assembly Bill 1343\u003c/a> by Asm. Susan Eggman, aimed at closing a loophole in federal law that lets for-profit colleges subsist almost entirely on public financial aid dollars if the money includes military education benefits. Lowering the ceiling on financial aid to 85% of revenue and including GI Bill funds, many veterans groups believed, would remove an incentive for schools to target service members with predatory recruiting.\u003c/p>\n\u003cp>But like other groups supporting the bill, Veterans Education Success is tax-exempt, does not make political contributions and spends little on lobbying. “We’re dealing with an issue of resources,” Curtis said. “We don’t have the money to oppose them.”\u003c/p>\n\u003cp>Schools had argued that to comply with the financial aid cap in Eggman’s bill, they’d either have to raise tuition or shut down. Committee chair Sen. Glazer shared that fear, said Weintraub.\u003c/p>\n\u003cp>“He believes that there were unintended consequences in AB 1343 which actually could have hurt the veterans that the bill was trying to help,” Weintraub said.\u003c/p>\n\u003cp>Chiu’s gainful employment bill was also amended: Schools would have to report information on their graduates’ earnings and debt levels, but those with high debt-to-income ratios wouldn’t be barred from operating. Three more of the for-profit college oversight bills later quietly perished in the Senate Appropriations committee.\u003c/p>\n\u003cp>The bills were hamstrung in part by a legacy of problems at the state agency charged with overseeing for-profit colleges. CalMatters \u003ca href=\"https://calmatters.org/education/2018/10/california-for-profit-colleges-investigation/\" target=\"_blank\" rel=\"noopener\">reported last year\u003c/a> that the Bureau for Private Postsecondary Education was sitting on a backlog of nearly 1,200 unresolved student complaints, and inspecting schools less than half as often as it was required to by law.\u003c/p>\n\u003cp>Since then, the bureau says that it has hired more investigators to handle the complaints, shrinking the average caseload from 77 cases to about 20. But its outdated computer system — scheduled to be replaced in 2021 — still cannot perform basic functions such as tracking the status of complaints. A bill analysis found that putting the bureau in charge of enforcing the gainful employment standard would cost $12 million, an increase of more than 50% to the agency’s budget.\u003c/p>\n\u003cp>Glazer doubted the bureau’s capacity to “gather all that data and compare it with wage data, and to do that in a high stakes environment,” Weintraub said.\u003c/p>\n\u003cp>The bills’ fate points to a dilemma faced by consumer advocates who want to tighten state-level oversight of for-profit colleges in response to U.S. Education Secretary Betsy DeVos’s laissez-faire approach. State officials in Washington, Oregon, Massachusetts and New York are considering such measures. But states lack the budget of the federal government, and most haven’t developed an infrastructure to effectively monitor schools.\u003c/p>\n\u003cp>“This is a moment where state attorney generals and legislatures are saying, ‘What can we do for consumer protection within our own state?’” said Howard Lurie, a higher education analyst with the research firm Eduventures.\u003c/p>\n\u003cp>California legislators could take up that question again when the bureau undergoes a review of its performance next year.\u003c/p>\n\u003cp>In the meantime, Chiu hopes that gathering information on which for-profit vocational programs effectively prepare graduates for careers will help students make better decisions, and regulators identify red flags. His bill is scheduled for a vote on the Senate floor sometime next week.\u003c/p>\n\u003cp>“Our hope is the data will give us a road map to address bad apples in the for-profit world in the near future,” Chiu said. “We’ll have a pretty good sense of how many schools are failing our students and who they are.”\u003c/p>\n\u003cp>\u003ci>This story and other higher education coverage are supported by the College Futures Foundation.\u003c/i>\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://calmatters.org/\" target=\"_blank\" rel=\"noopener\">CalMatters.org\u003c/a> is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11773028/what-happened-to-californias-crackdown-on-for-profit-colleges","authors":["byline_news_11773028"],"categories":["news_18540","news_8"],"tags":["news_18085","news_2924","news_25423","news_6699"],"featImg":"news_11773054","label":"source_news_11773028"},"news_11729667":{"type":"posts","id":"news_11729667","meta":{"index":"posts_1591205157","site":"news","id":"11729667","score":null,"sort":[1551377620000]},"guestAuthors":[],"slug":"concern-for-defrauded-and-victimized-students-spurs-calls-for-tighter-for-profit-college-oversight","title":"Concern for 'Defrauded and Victimized' Students Spurs Calls for Tighter For-Profit College Oversight","publishDate":1551377620,"format":"standard","headTitle":"CALmatters | KQED News","labelTerm":{},"content":"\u003cp>The turmoil in the for-profit college industry has affected California as much as any state, with the closures of major chains leaving thousands of students deeply in debt, their educations on hold. Meanwhile, the state agency in charge of regulating private colleges and vocational schools has \u003ca href=\"https://calmatters.org/articles/california-for-profit-colleges-investigation/\" rel=\"noopener\" target=\"_blank\">struggled to enforce\u003c/a> California law.\u003c/p>\n\u003cp>Now lawmakers and agency officials are seeking to tighten oversight of the troubled sector.\u003c/p>\n\u003cp>A package of seven bills unveiled Wednesday by Democratic state legislators would make major changes to the standards for-profit colleges must meet to operate in California.\u003c/p>\n\u003cp>One proposal, \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB1340\" rel=\"noopener\" target=\"_blank\">Assembly Bill 1340\u003c/a>, would bar schools from enrolling California students in programs designed to prepare them for careers if their students’ debt after graduation rises above a certain percentage of their incomes.\u003c/p>\n\u003cp>It’s based on a “gainful employment” rule adopted by the Obama administration and since \u003ca href=\"https://www.nytimes.com/2018/07/26/us/politics/betsy-devos-for-profit-colleges.html\" rel=\"noopener\" target=\"_blank\">delayed\u003c/a> by U.S. Education Secretary Betsy DeVos. The rule aimed to hold schools accountable for their promises to provide students with a path to a stable career.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“The story is commonplace — students taking out thousands of dollars of loans to enroll in a career training program they have been led to believe will lead to a job, only to discover they’ve got themselves in a horrible financial hole with no return on their investment,” said the bill’s author, Assemblyman David Chiu of San Francisco.\u003c/p>\n\u003cp>A previous attempt to enact a California version of the gainful employment rule failed. But that was before California joined 17 other states in suing over the rule’s delay, and DeVos announced her intention to repeal it altogether.\u003c/p>\n\u003cp>About 160,000 California students attend degree-granting for-profit colleges, with many more studying for a career at one of the state’s for-profit vocational schools. Those numbers include 10 percent of black undergraduates, according to a \u003ca href=\"https://collegecampaign.org/portfolio/state-higher-education-black-californians/\" rel=\"noopener\" target=\"_blank\">recent study\u003c/a> by the Campaign for College Opportunity.\u003c/p>\n\u003cfigure id=\"attachment_11729700\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/02/GettyImages-1017762208-800x1104.jpg\" alt=\"\" width=\"800\" height=\"1104\" class=\"size-medium wp-image-11729700\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2019/02/GettyImages-1017762208-800x1104.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/GettyImages-1017762208-160x221.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/GettyImages-1017762208-1020x1408.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/GettyImages-1017762208-870x1200.jpg 870w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/GettyImages-1017762208-1920x2649.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/GettyImages-1017762208.jpg 1484w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">U.S. Education Secretary Betsy DeVos participates in a meeting of the Federal Commission on School Safety on Aug. 16, 2018 in Washington, D.C. \u003ccite>(Chip Somodevilla/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>They also include veterans who use GI bill money to pay for both tuition and living expenses. \u003ca href=\"http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB1343\" rel=\"noopener\" target=\"_blank\">Another bill\u003c/a> by Democratic Assemblywoman Susan Eggman of Stockton would prevent colleges from using GI bill funds to rely more heavily on taxpayer money than federal law otherwise allows.\u003c/p>\n\u003cp>A third, \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB1344\" rel=\"noopener\" target=\"_blank\">AB 1344\u003c/a> from Democratic Assemblywoman Rebecca Bauer-Kahan of Orinda, would expand the number of state rules that out-of-state colleges enrolling California students in online programs must comply with.\u003c/p>\n\u003cp>A staffer at the California Association of Private Postsecondary Schools, which represents many of the state’s for-profit colleges, said no one was available to comment by press time on the legislative push.\u003c/p>\n\u003cp>Chiu said he was inspired to work with colleagues on the issue after an \u003ca href=\"https://calmatters.org/articles/california-for-profit-colleges-investigation/\" rel=\"noopener\" target=\"_blank\">investigation last fall\u003c/a> by CALmatters and The Sacramento Bee that found California’s Bureau for Private Postsecondary Education often failed to enforce state laws designed to prevent predatory recruiting and other abuses at for-profit schools.\u003c/p>\n\u003cp>The bureau was inspecting schools less than half as often as California law requires, the investigation found, and had a backlog of nearly 1,200 unresolved student complaints, many of which had been pending for years. Some students said their complaints of fraud had been dismissed with little explanation.\u003c/p>\n\u003cp>This month, the bureau’s parent agency, the Department of Consumer Affairs, announced it had created a special five-member task force of current and retired investigators to reduce the backlog.\u003c/p>\n\u003cp>The bureau will also be reorganized, with its current enforcement chief transferring to an administrative role and a new special investigator with experience in complex investigations hired to oversee complaints, said spokesperson Matt Woodcheke.\u003c/p>\n\u003cp>The reorganization “was a long time coming, and we hope that moving forward, the bureau is much more well-positioned to serve the needs of students in California,” he said.\u003c/p>\n\u003cp>Bureau staff said they had reduced the complaint backlog by about a quarter since November — though it’s unclear whether that was due to staffing changes or to the bureau’s decision to close out pending complaints if a student did not respond quickly to a letter asking if they wished to continue their case.\u003c/p>\n\u003cp>Attorney Megumi Tsutsui, a member of the bureau’s independent advisory committee who also represents students in fraud cases, said she hoped the new attention to complaints would lead to more thorough investigations.\u003c/p>\n\u003cp>“It’s great that they’re putting all these resources in place,” she said. “What I wouldn’t want them to do is just find ways to close cases by marking them done and moving on.”\u003c/p>\n\u003cp>If lawmakers pass AB 1340 and Gov. Gavin Newsom signs it, California would be the first state in the nation to establish its own gainful employment rule. At least some of the responsibility for enforcing the rule would likely fall to the bureau.\u003c/p>\n\u003cp>Chiu said he and his colleagues would be monitoring the bureau’s evolution closely.\u003c/p>\n\u003cp>“At this time when our students are being defrauded and victimized, we need the bureau to step up,” he said.\u003cbr>\n\u003cem>\u003cbr>\nThis story and other higher education coverage are supported by the College Futures Foundation.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003ca href=\"https://calmatters.org/\" rel=\"noopener\" target=\"_blank\">CALmatters.org\u003c/a> is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/p>\n\n","blocks":[],"excerpt":"New legislation would make major changes to the standards for-profit colleges must meet to operate in California, and the state bureau regulating the industry has been reorganized.","status":"publish","parent":0,"modified":1551377620,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":25,"wordCount":911},"headData":{"title":"Concern for 'Defrauded and Victimized' Students Spurs Calls for Tighter For-Profit College Oversight | KQED","description":"New legislation would make major changes to the standards for-profit colleges must meet to operate in California, and the state bureau regulating the industry has been reorganized.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Concern for 'Defrauded and Victimized' Students Spurs Calls for Tighter For-Profit College Oversight","datePublished":"2019-02-28T18:13:40.000Z","dateModified":"2019-02-28T18:13:40.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11729667 https://ww2.kqed.org/news/?p=11729667","disqusUrl":"https://ww2.kqed.org/news/2019/02/28/concern-for-defrauded-and-victimized-students-spurs-calls-for-tighter-for-profit-college-oversight/","disqusTitle":"Concern for 'Defrauded and Victimized' Students Spurs Calls for Tighter For-Profit College Oversight","source":"CALmatters","sourceUrl":"https://calmatters.org/","nprByline":"\u003cstrong>\u003ca href=\"https://calmatters.org/articles/author/feliciacalmatters-org/\">Felicia Mello\u003cbr />\u003ca href=\"https://calmatters.org/\">CALmatters\u003c/a>\u003c/strong>","path":"/news/11729667/concern-for-defrauded-and-victimized-students-spurs-calls-for-tighter-for-profit-college-oversight","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>The turmoil in the for-profit college industry has affected California as much as any state, with the closures of major chains leaving thousands of students deeply in debt, their educations on hold. Meanwhile, the state agency in charge of regulating private colleges and vocational schools has \u003ca href=\"https://calmatters.org/articles/california-for-profit-colleges-investigation/\" rel=\"noopener\" target=\"_blank\">struggled to enforce\u003c/a> California law.\u003c/p>\n\u003cp>Now lawmakers and agency officials are seeking to tighten oversight of the troubled sector.\u003c/p>\n\u003cp>A package of seven bills unveiled Wednesday by Democratic state legislators would make major changes to the standards for-profit colleges must meet to operate in California.\u003c/p>\n\u003cp>One proposal, \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB1340\" rel=\"noopener\" target=\"_blank\">Assembly Bill 1340\u003c/a>, would bar schools from enrolling California students in programs designed to prepare them for careers if their students’ debt after graduation rises above a certain percentage of their incomes.\u003c/p>\n\u003cp>It’s based on a “gainful employment” rule adopted by the Obama administration and since \u003ca href=\"https://www.nytimes.com/2018/07/26/us/politics/betsy-devos-for-profit-colleges.html\" rel=\"noopener\" target=\"_blank\">delayed\u003c/a> by U.S. Education Secretary Betsy DeVos. The rule aimed to hold schools accountable for their promises to provide students with a path to a stable career.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“The story is commonplace — students taking out thousands of dollars of loans to enroll in a career training program they have been led to believe will lead to a job, only to discover they’ve got themselves in a horrible financial hole with no return on their investment,” said the bill’s author, Assemblyman David Chiu of San Francisco.\u003c/p>\n\u003cp>A previous attempt to enact a California version of the gainful employment rule failed. But that was before California joined 17 other states in suing over the rule’s delay, and DeVos announced her intention to repeal it altogether.\u003c/p>\n\u003cp>About 160,000 California students attend degree-granting for-profit colleges, with many more studying for a career at one of the state’s for-profit vocational schools. Those numbers include 10 percent of black undergraduates, according to a \u003ca href=\"https://collegecampaign.org/portfolio/state-higher-education-black-californians/\" rel=\"noopener\" target=\"_blank\">recent study\u003c/a> by the Campaign for College Opportunity.\u003c/p>\n\u003cfigure id=\"attachment_11729700\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/02/GettyImages-1017762208-800x1104.jpg\" alt=\"\" width=\"800\" height=\"1104\" class=\"size-medium wp-image-11729700\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2019/02/GettyImages-1017762208-800x1104.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/GettyImages-1017762208-160x221.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/GettyImages-1017762208-1020x1408.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/GettyImages-1017762208-870x1200.jpg 870w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/GettyImages-1017762208-1920x2649.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/GettyImages-1017762208.jpg 1484w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">U.S. Education Secretary Betsy DeVos participates in a meeting of the Federal Commission on School Safety on Aug. 16, 2018 in Washington, D.C. \u003ccite>(Chip Somodevilla/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>They also include veterans who use GI bill money to pay for both tuition and living expenses. \u003ca href=\"http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB1343\" rel=\"noopener\" target=\"_blank\">Another bill\u003c/a> by Democratic Assemblywoman Susan Eggman of Stockton would prevent colleges from using GI bill funds to rely more heavily on taxpayer money than federal law otherwise allows.\u003c/p>\n\u003cp>A third, \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB1344\" rel=\"noopener\" target=\"_blank\">AB 1344\u003c/a> from Democratic Assemblywoman Rebecca Bauer-Kahan of Orinda, would expand the number of state rules that out-of-state colleges enrolling California students in online programs must comply with.\u003c/p>\n\u003cp>A staffer at the California Association of Private Postsecondary Schools, which represents many of the state’s for-profit colleges, said no one was available to comment by press time on the legislative push.\u003c/p>\n\u003cp>Chiu said he was inspired to work with colleagues on the issue after an \u003ca href=\"https://calmatters.org/articles/california-for-profit-colleges-investigation/\" rel=\"noopener\" target=\"_blank\">investigation last fall\u003c/a> by CALmatters and The Sacramento Bee that found California’s Bureau for Private Postsecondary Education often failed to enforce state laws designed to prevent predatory recruiting and other abuses at for-profit schools.\u003c/p>\n\u003cp>The bureau was inspecting schools less than half as often as California law requires, the investigation found, and had a backlog of nearly 1,200 unresolved student complaints, many of which had been pending for years. Some students said their complaints of fraud had been dismissed with little explanation.\u003c/p>\n\u003cp>This month, the bureau’s parent agency, the Department of Consumer Affairs, announced it had created a special five-member task force of current and retired investigators to reduce the backlog.\u003c/p>\n\u003cp>The bureau will also be reorganized, with its current enforcement chief transferring to an administrative role and a new special investigator with experience in complex investigations hired to oversee complaints, said spokesperson Matt Woodcheke.\u003c/p>\n\u003cp>The reorganization “was a long time coming, and we hope that moving forward, the bureau is much more well-positioned to serve the needs of students in California,” he said.\u003c/p>\n\u003cp>Bureau staff said they had reduced the complaint backlog by about a quarter since November — though it’s unclear whether that was due to staffing changes or to the bureau’s decision to close out pending complaints if a student did not respond quickly to a letter asking if they wished to continue their case.\u003c/p>\n\u003cp>Attorney Megumi Tsutsui, a member of the bureau’s independent advisory committee who also represents students in fraud cases, said she hoped the new attention to complaints would lead to more thorough investigations.\u003c/p>\n\u003cp>“It’s great that they’re putting all these resources in place,” she said. “What I wouldn’t want them to do is just find ways to close cases by marking them done and moving on.”\u003c/p>\n\u003cp>If lawmakers pass AB 1340 and Gov. Gavin Newsom signs it, California would be the first state in the nation to establish its own gainful employment rule. At least some of the responsibility for enforcing the rule would likely fall to the bureau.\u003c/p>\n\u003cp>Chiu said he and his colleagues would be monitoring the bureau’s evolution closely.\u003c/p>\n\u003cp>“At this time when our students are being defrauded and victimized, we need the bureau to step up,” he said.\u003cbr>\n\u003cem>\u003cbr>\nThis story and other higher education coverage are supported by the College Futures Foundation.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003ca href=\"https://calmatters.org/\" rel=\"noopener\" target=\"_blank\">CALmatters.org\u003c/a> is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11729667/concern-for-defrauded-and-victimized-students-spurs-calls-for-tighter-for-profit-college-oversight","authors":["byline_news_11729667"],"categories":["news_18540","news_8"],"tags":["news_2924"],"affiliates":["news_18481"],"featImg":"news_11729668","label":"source_news_11729667"},"news_11637321":{"type":"posts","id":"news_11637321","meta":{"index":"posts_1591205157","site":"news","id":"11637321","score":null,"sort":[1513384829000]},"guestAuthors":[],"slug":"betsy-devos-wont-give-required-debt-relief-to-defrauded-students-california-says","title":"Betsy DeVos Won't Give Required Debt Relief to Defrauded Students, California Says","publishDate":1513384829,"format":"standard","headTitle":"The California Report | KQED News","labelTerm":{"term":72,"site":"news"},"content":"\u003cp>In his latest effort to take on the Trump administration, California Attorney General Xavier Becerra \u003ca href=\"https://oag.ca.gov/news/press-releases/attorney-general-becerra-takes-education-secretary-devos-court-withholding\" target=\"_blank\" rel=\"noopener\">claims the U.S. Department of Education is refusing to let students off the hook\u003c/a> for loans they're entitled to have forgiven.\u003c/p>\n\u003cp>The suit, filed Thursday in San Francisco, alleges the U.S. Department of Education under Betsy DeVos is refusing to process claims made by former \u003ca href=\"https://www.npr.org/sections/ed/2015/04/27/402560783/the-largest-for-profit-college-shutdown-in-history\" target=\"_blank\" rel=\"noopener\">Corinthian Colleges Inc.\u003c/a> students, who were defrauded by the for-profit schools and are therefore eligible for debt relief.\u003c/p>\n\u003cp>It marks the 23rd time California has sued the Trump administration.\u003c/p>\n\u003cp>“What Secretary DeVos is doing is unconscionable,” Becerra said in a statement. “After having their American Dreams stolen by a so-called higher education institution, Corinthian students are now being denied critical relief by a Secretary of Education hostile to their plight.\"\u003c/p>\n\u003cp>California was instrumental in establishing loan forgiveness for tens of thousands of students allegedly scammed by \u003ca href=\"https://ww2.kqed.org/news/2015/04/27/corinthian-colleges-shut-down-in-wake-of-federal-penalties/\" target=\"_blank\" rel=\"noopener\">now-defunct Corinthian Colleges\u003c/a>.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>[contextly_sidebar id=\"AQRjrGOZzyrViW9kpTh7skyLIZpRx94W\"]\u003c/p>\n\u003cp>When U.S. Sen. Kamala Harris was California's attorney general, she took Corinthian to court, claiming the schools preyed on poor students and made false promises about job prospects. Harris' office \u003ca href=\"https://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-obtains-11-billion-judgment-against-predatory\" target=\"_blank\" rel=\"noopener\">won a $1.1 billion judgment\u003c/a> against the school operator.\u003c/p>\n\u003cp>\"For years, Corinthian profited off the backs of poor people,\" Harris said in a statement at the time. \"Now they have to pay. This judgment sends a clear message: there is a cost to this kind of predatory conduct.\"\u003c/p>\n\u003cp>After a \u003ca href=\"https://www.ed.gov/news/press-releases/department-education-and-attorney-general-kamala-harris-announce-findings-investigation-wyotech-and-everest-programs\" target=\"_blank\" rel=\"noopener\">joint investigation\u003c/a> with California's Department of Justice, President Obama's Department of Education \u003ca href=\"https://studentaid.ed.gov/sa/about/announcements/corinthian\" target=\"_blank\" rel=\"noopener\">told tens of thousands of former Corinthian students they were entitled to federal student loan relief\u003c/a> through a streamlined process.\u003c/p>\n\u003cp>According to the new suit, more than 50,000 relief claims filed by Corinthian students are pending, including 13,000 from Californians.\u003c/p>\n\u003cp>Under Xavier Becerra, California has sued DeVos' Education Department twice before, both times for issues related to for-profit colleges.\u003c/p>\n\u003cp>One suit claims DeVos has \u003ca href=\"https://oag.ca.gov/news/press-releases/attorney-general-becerra-sues-department-education-illegally-delaying\" target=\"_blank\" rel=\"noopener\">delayed implementation of an Obama-era protection\u003c/a> that requires for-profit schools to prepare students for “gainful employment in a recognized occupation.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>The other alleges DeVos has \u003ca href=\"https://oag.ca.gov/news/press-releases/attorney-general-becerra-sues-us-department-education-unlawfully-delaying\" target=\"_blank\" rel=\"noopener\">delayed the rollout of regulations\u003c/a> that require the Education Department to provide a streamlined loan forgiveness process to students who have been defrauded by for-profit universities.\u003c/p>\n\n","blocks":[],"excerpt":"In a lawsuit, the state alleges Trump's Department of Education is refusing to process claims made by former Corinthian Colleges students, who were defrauded and are eligible for relief.","status":"publish","parent":0,"modified":1513385800,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":15,"wordCount":386},"headData":{"title":"Betsy DeVos Won't Give Required Debt Relief to Defrauded Students, California Says | KQED","description":"In a lawsuit, the state alleges Trump's Department of Education is refusing to process claims made by former Corinthian Colleges students, who were defrauded and are eligible for relief.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Betsy DeVos Won't Give Required Debt Relief to Defrauded Students, California Says","datePublished":"2017-12-16T00:40:29.000Z","dateModified":"2017-12-16T00:56:40.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11637321 https://ww2.kqed.org/news/?p=11637321","disqusUrl":"https://ww2.kqed.org/news/2017/12/15/betsy-devos-wont-give-required-debt-relief-to-defrauded-students-california-says/","disqusTitle":"Betsy DeVos Won't Give Required Debt Relief to Defrauded Students, California Says","path":"/news/11637321/betsy-devos-wont-give-required-debt-relief-to-defrauded-students-california-says","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>In his latest effort to take on the Trump administration, California Attorney General Xavier Becerra \u003ca href=\"https://oag.ca.gov/news/press-releases/attorney-general-becerra-takes-education-secretary-devos-court-withholding\" target=\"_blank\" rel=\"noopener\">claims the U.S. Department of Education is refusing to let students off the hook\u003c/a> for loans they're entitled to have forgiven.\u003c/p>\n\u003cp>The suit, filed Thursday in San Francisco, alleges the U.S. Department of Education under Betsy DeVos is refusing to process claims made by former \u003ca href=\"https://www.npr.org/sections/ed/2015/04/27/402560783/the-largest-for-profit-college-shutdown-in-history\" target=\"_blank\" rel=\"noopener\">Corinthian Colleges Inc.\u003c/a> students, who were defrauded by the for-profit schools and are therefore eligible for debt relief.\u003c/p>\n\u003cp>It marks the 23rd time California has sued the Trump administration.\u003c/p>\n\u003cp>“What Secretary DeVos is doing is unconscionable,” Becerra said in a statement. “After having their American Dreams stolen by a so-called higher education institution, Corinthian students are now being denied critical relief by a Secretary of Education hostile to their plight.\"\u003c/p>\n\u003cp>California was instrumental in establishing loan forgiveness for tens of thousands of students allegedly scammed by \u003ca href=\"https://ww2.kqed.org/news/2015/04/27/corinthian-colleges-shut-down-in-wake-of-federal-penalties/\" target=\"_blank\" rel=\"noopener\">now-defunct Corinthian Colleges\u003c/a>.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>When U.S. Sen. Kamala Harris was California's attorney general, she took Corinthian to court, claiming the schools preyed on poor students and made false promises about job prospects. Harris' office \u003ca href=\"https://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-obtains-11-billion-judgment-against-predatory\" target=\"_blank\" rel=\"noopener\">won a $1.1 billion judgment\u003c/a> against the school operator.\u003c/p>\n\u003cp>\"For years, Corinthian profited off the backs of poor people,\" Harris said in a statement at the time. \"Now they have to pay. This judgment sends a clear message: there is a cost to this kind of predatory conduct.\"\u003c/p>\n\u003cp>After a \u003ca href=\"https://www.ed.gov/news/press-releases/department-education-and-attorney-general-kamala-harris-announce-findings-investigation-wyotech-and-everest-programs\" target=\"_blank\" rel=\"noopener\">joint investigation\u003c/a> with California's Department of Justice, President Obama's Department of Education \u003ca href=\"https://studentaid.ed.gov/sa/about/announcements/corinthian\" target=\"_blank\" rel=\"noopener\">told tens of thousands of former Corinthian students they were entitled to federal student loan relief\u003c/a> through a streamlined process.\u003c/p>\n\u003cp>According to the new suit, more than 50,000 relief claims filed by Corinthian students are pending, including 13,000 from Californians.\u003c/p>\n\u003cp>Under Xavier Becerra, California has sued DeVos' Education Department twice before, both times for issues related to for-profit colleges.\u003c/p>\n\u003cp>One suit claims DeVos has \u003ca href=\"https://oag.ca.gov/news/press-releases/attorney-general-becerra-sues-department-education-illegally-delaying\" target=\"_blank\" rel=\"noopener\">delayed implementation of an Obama-era protection\u003c/a> that requires for-profit schools to prepare students for “gainful employment in a recognized occupation.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>The other alleges DeVos has \u003ca href=\"https://oag.ca.gov/news/press-releases/attorney-general-becerra-sues-us-department-education-unlawfully-delaying\" target=\"_blank\" rel=\"noopener\">delayed the rollout of regulations\u003c/a> that require the Education Department to provide a streamlined loan forgiveness process to students who have been defrauded by for-profit universities.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11637321/betsy-devos-wont-give-required-debt-relief-to-defrauded-students-california-says","authors":["11276"],"programs":["news_6944","news_72"],"categories":["news_18540","news_8","news_13"],"tags":["news_20504","news_18033","news_1323","news_2924","news_17286","news_17041","news_20378"],"featImg":"news_11637467","label":"news_72"},"news_11551769":{"type":"posts","id":"news_11551769","meta":{"index":"posts_1591205157","site":"news","id":"11551769","score":null,"sort":[1499370049000]},"guestAuthors":[],"slug":"18-states-sue-betsy-devos-over-her-delay-of-student-loan-protections","title":"California's Top Cop: Trump Decision Could Rip Off Students","publishDate":1499370049,"format":"standard","headTitle":"The California Report | KQED News","labelTerm":{},"content":"\u003cp>California Attorney General Xavier Becerra joined 17 other attorneys general Thursday, suing Education Secretary Betsy DeVos and her department over her decision to delay regulations cracking down on for-profit colleges that mislead students.\u003c/p>\n\u003cp>The Obama-era regulations were supposed to take effect July 1. They would have allowed loan forgiveness in cases of misconduct by schools and made it easier for states to punish bad actors.\u003c/p>\n\u003cp>\"Whether it’s Corinthian Colleges or Trump University, no student deserves to have their parents' -- or their own -- hard-earned money fraudulently taken away from them with nothing in return,\" Becerra said in an interview with KQED News.\u003c/p>\n\u003cp>The attorney general is referring to President Trump's now-defunct real estate training program and Corinthian Colleges, which shut down and eventually filed for bankruptcy after Becerra's predecessor sued over its predatory practices. Then-Attorney General Kamala Harris -- now a U.S. senator -- secured a $1 billion judgment against Corinthian Colleges on behalf of students. Then-President-elect Trump also settled three lawsuits alleging fraud and illegal business practices last year.\u003c/p>\n\u003cp>\"These regulations do, for America's parents and kids going to college, what we simply expect to happen anyhow -- which is that our students get educated, not ripped off, when they go to a college,\" Becerra said. \"The regulations were the product of these cases against sham universities like Corinthians, and essentially try to provide these protections to avoid this sort of defrauding from occurring in the future.\"\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Becerra said the Trump administration is \"not above the law.\"\u003c/p>\n\u003cp>\"When you’ve completed a process for enacting a law or regulation, then it must be implemented and obeyed,\" he said. \"The Trump administration ... doesn't have a right to selectively decide which laws and regulations it will execute and which it will abandon.\"\u003c/p>\n\u003cp>The suit -- brought by California, 17 other states and the District of Columbia -- accuses DeVos of breaking federal law and giving free rein to for-profit colleges by rescinding the Borrower Defense Rule.\u003c/p>\n\u003cp>The suit asks a U.S. District Court to declare the Education Department's delay of the rule unlawful and to order the agency to implement it. The states say they have pursued \"numerous costly and time-intensive investigations and enforcement actions against proprietary and for-profit schools\" that violated consumer protection laws.\u003c/p>\n\u003cp>The Borrower Defense Rule was adopted by the Obama administration last November and had been set to take effect this month. It was created to make it \"simpler for students at colleges found to be fraudulent to get their loans forgiven,\" as \u003ca href=\"http://www.npr.org/sections/ed/2017/06/17/531930366/devos-rolls-back-for-profit-college-regs-harvards-president-to-step-down\">NPR's Ed team\u003c/a> has reported.\u003c/p>\n\u003cp>Large amounts of money are potentially at stake. As the states' complaint notes, \"taxpayers invested $32 billion in for-profit schools in the 2009-10 academic year, more than the annual budget of the U.S. Department of Justice and the U.S. Department of State during that time period.\"\u003c/p>\n\u003cp>The rule was put on hold in June, less than one month after DeVos said her agency would re-evaluate it. The states say DeVos moved too quickly to quash the rule and did so without public comment, particularly compared with the rule's genesis in public hearings that began in September 2015.\u003c/p>\n\u003cp>DeVos called her move \u003ca href=\"https://www.ed.gov/news/press-releases/secretary-devos-announces-regulatory-reset-protect-students-taxpayers-higher-ed-institutions\">a \"regulatory reset\"\u003c/a> when she announced that the Department of Education would convene new public hearings on the rule that are scheduled to be held next week. The secretary said the rulemaking process had \"missed an opportunity to get it right\" and created \"a muddled process.\"\u003c/p>\n\u003cp>The states in the new federal complaint disagree, saying that DeVos is trying to use a lawsuit filed by the California Association of Private Postsecondary Schools, a trade organization, as \"a pretext\" to avoid legal requirements for a federal notice and comment period.\u003c/p>\n\u003cp>\"Since Day 1, Secretary DeVos has sided with for-profit school executives against students and families drowning in unaffordable student loans,\" Massachusetts Attorney General Maura Healey said in a news release about Thursday's court filing. \"Her decision to cancel vital protections for students and taxpayers is a betrayal of her office's responsibility and a violation of federal law. We call on Secretary DeVos and the U.S. Department of Education to restore these rules immediately.\"\u003c/p>\n\u003cp>The Borrower Defense Rule was negotiated after two large for-profit chains — \u003ca href=\"http://www.npr.org/sections/ed/2015/04/27/402560783/the-largest-for-profit-college-shutdown-in-history\">Corinthian Colleges\u003c/a> and the \u003ca href=\"http://www.npr.org/sections/ed/2016/12/07/502601724/what-former-employees-say-itt-tech-did-to-scam-its-students\">ITT Technical Institute\u003c/a> — shut down hundreds of campuses following regulatory crackdowns in recent years. The rule would allow borrowers to have their loans forgiven if a state has successfully taken action against a for-profit school.\u003c/p>\n\u003cp>[contextly_sidebar id=\"4PE0wrN7qiOZTvodokLqBeHhQisQXPqf\"]\u003c/p>\n\u003cp>\"Nearly 16,000 borrower defense claims are currently being processed,\" the Education Department said last month. Despite the postponement, DeVos said, \"promises made to students under the current rule will be promises kept.\" She added, \"Some borrowers should expect to obtain discharges within the next several weeks.\"\u003c/p>\n\u003cp>In addition to providing relief for students, the rule would also empower the Department of Education to seek money from schools where loans were forgiven.\u003c/p>\n\u003cp>\"For-profit schools receive the vast majority of their revenue from the federal government in the form of federal student loans and grants,\" the civil complaint notes. \"In 2009, the 15 publicly traded for-profit education companies received 86 percent of their revenues from taxpayer-funded loans.\"\u003c/p>\n\u003cp>The attorneys general who filed the lawsuit are from California, Connecticut, Delaware, Hawaii, Iowa, Illinois, Maryland, Massachusetts, Minnesota, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington and the District of Columbia.\u003c/p>\n\u003cp>\"These rules served as critical protections against predatory for-profit schools that exploit hard-working students — students who are simply trying to invest in their own education and future,\" said New York Attorney General Eric Schneiderman. \"When Washington abdicates its responsibility to protect New Yorkers, we won't hesitate to step in.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>This post includes reporting by KQED's Marisa Lagos.\u003c/em>\u003c/p>\n\u003cdiv class=\"fullattribution\">Copyright 2017 NPR. To see more, visit http://www.npr.org/.\u003cimg src=\"https://www.google-analytics.com/__utm.gif?utmac=UA-5828686-4&utmdt=18+States+Sue+Betsy+DeVos+And+Education+Dept.+Over+Delay+Of+Borrower+Defense+Rule&utme=8(APIKey)9(MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004)\">\u003c/div>\n\n","blocks":[],"excerpt":"Attorney General Xavier Becerra joined 17 other states in suing Education Secretary Betsy DeVos over a decision to delay regulations cracking down on for-profit colleges that mislead students.\r\n","status":"publish","parent":0,"modified":1499387808,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":25,"wordCount":1005},"headData":{"title":"California's Top Cop: Trump Decision Could Rip Off Students | KQED","description":"Attorney General Xavier Becerra joined 17 other states in suing Education Secretary Betsy DeVos over a decision to delay regulations cracking down on for-profit colleges that mislead students.\r\n","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"California's Top Cop: Trump Decision Could Rip Off Students","datePublished":"2017-07-06T19:40:49.000Z","dateModified":"2017-07-07T00:36:48.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11551769 https://ww2.kqed.org/news/?p=11551769","disqusUrl":"https://ww2.kqed.org/news/2017/07/06/18-states-sue-betsy-devos-over-her-delay-of-student-loan-protections/","disqusTitle":"California's Top Cop: Trump Decision Could Rip Off Students","source":"NPR","sourceUrl":"http://www.npr.org/","nprImageCredit":"Win McNamee","nprByline":"Bill Chappell","nprImageAgency":"Getty Images","nprStoryId":"535776573","nprApiLink":"http://api.npr.org/query?id=535776573&apiKey=MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004","nprHtmlLink":"http://www.npr.org/sections/thetwo-way/2017/07/06/535776573/18-states-sue-betsy-devos-and-education-dept-over-delay-of-borrower-defense-rule?ft=nprml&f=535776573","nprRetrievedStory":"1","nprPubDate":"Thu, 06 Jul 2017 14:37:00 -0400","nprStoryDate":"Thu, 06 Jul 2017 11:45:00 -0400","nprLastModifiedDate":"Thu, 06 Jul 2017 14:37:47 -0400","path":"/news/11551769/18-states-sue-betsy-devos-over-her-delay-of-student-loan-protections","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>California Attorney General Xavier Becerra joined 17 other attorneys general Thursday, suing Education Secretary Betsy DeVos and her department over her decision to delay regulations cracking down on for-profit colleges that mislead students.\u003c/p>\n\u003cp>The Obama-era regulations were supposed to take effect July 1. They would have allowed loan forgiveness in cases of misconduct by schools and made it easier for states to punish bad actors.\u003c/p>\n\u003cp>\"Whether it’s Corinthian Colleges or Trump University, no student deserves to have their parents' -- or their own -- hard-earned money fraudulently taken away from them with nothing in return,\" Becerra said in an interview with KQED News.\u003c/p>\n\u003cp>The attorney general is referring to President Trump's now-defunct real estate training program and Corinthian Colleges, which shut down and eventually filed for bankruptcy after Becerra's predecessor sued over its predatory practices. Then-Attorney General Kamala Harris -- now a U.S. senator -- secured a $1 billion judgment against Corinthian Colleges on behalf of students. Then-President-elect Trump also settled three lawsuits alleging fraud and illegal business practices last year.\u003c/p>\n\u003cp>\"These regulations do, for America's parents and kids going to college, what we simply expect to happen anyhow -- which is that our students get educated, not ripped off, when they go to a college,\" Becerra said. \"The regulations were the product of these cases against sham universities like Corinthians, and essentially try to provide these protections to avoid this sort of defrauding from occurring in the future.\"\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Becerra said the Trump administration is \"not above the law.\"\u003c/p>\n\u003cp>\"When you’ve completed a process for enacting a law or regulation, then it must be implemented and obeyed,\" he said. \"The Trump administration ... doesn't have a right to selectively decide which laws and regulations it will execute and which it will abandon.\"\u003c/p>\n\u003cp>The suit -- brought by California, 17 other states and the District of Columbia -- accuses DeVos of breaking federal law and giving free rein to for-profit colleges by rescinding the Borrower Defense Rule.\u003c/p>\n\u003cp>The suit asks a U.S. District Court to declare the Education Department's delay of the rule unlawful and to order the agency to implement it. The states say they have pursued \"numerous costly and time-intensive investigations and enforcement actions against proprietary and for-profit schools\" that violated consumer protection laws.\u003c/p>\n\u003cp>The Borrower Defense Rule was adopted by the Obama administration last November and had been set to take effect this month. It was created to make it \"simpler for students at colleges found to be fraudulent to get their loans forgiven,\" as \u003ca href=\"http://www.npr.org/sections/ed/2017/06/17/531930366/devos-rolls-back-for-profit-college-regs-harvards-president-to-step-down\">NPR's Ed team\u003c/a> has reported.\u003c/p>\n\u003cp>Large amounts of money are potentially at stake. As the states' complaint notes, \"taxpayers invested $32 billion in for-profit schools in the 2009-10 academic year, more than the annual budget of the U.S. Department of Justice and the U.S. Department of State during that time period.\"\u003c/p>\n\u003cp>The rule was put on hold in June, less than one month after DeVos said her agency would re-evaluate it. The states say DeVos moved too quickly to quash the rule and did so without public comment, particularly compared with the rule's genesis in public hearings that began in September 2015.\u003c/p>\n\u003cp>DeVos called her move \u003ca href=\"https://www.ed.gov/news/press-releases/secretary-devos-announces-regulatory-reset-protect-students-taxpayers-higher-ed-institutions\">a \"regulatory reset\"\u003c/a> when she announced that the Department of Education would convene new public hearings on the rule that are scheduled to be held next week. The secretary said the rulemaking process had \"missed an opportunity to get it right\" and created \"a muddled process.\"\u003c/p>\n\u003cp>The states in the new federal complaint disagree, saying that DeVos is trying to use a lawsuit filed by the California Association of Private Postsecondary Schools, a trade organization, as \"a pretext\" to avoid legal requirements for a federal notice and comment period.\u003c/p>\n\u003cp>\"Since Day 1, Secretary DeVos has sided with for-profit school executives against students and families drowning in unaffordable student loans,\" Massachusetts Attorney General Maura Healey said in a news release about Thursday's court filing. \"Her decision to cancel vital protections for students and taxpayers is a betrayal of her office's responsibility and a violation of federal law. We call on Secretary DeVos and the U.S. Department of Education to restore these rules immediately.\"\u003c/p>\n\u003cp>The Borrower Defense Rule was negotiated after two large for-profit chains — \u003ca href=\"http://www.npr.org/sections/ed/2015/04/27/402560783/the-largest-for-profit-college-shutdown-in-history\">Corinthian Colleges\u003c/a> and the \u003ca href=\"http://www.npr.org/sections/ed/2016/12/07/502601724/what-former-employees-say-itt-tech-did-to-scam-its-students\">ITT Technical Institute\u003c/a> — shut down hundreds of campuses following regulatory crackdowns in recent years. The rule would allow borrowers to have their loans forgiven if a state has successfully taken action against a for-profit school.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>\"Nearly 16,000 borrower defense claims are currently being processed,\" the Education Department said last month. Despite the postponement, DeVos said, \"promises made to students under the current rule will be promises kept.\" She added, \"Some borrowers should expect to obtain discharges within the next several weeks.\"\u003c/p>\n\u003cp>In addition to providing relief for students, the rule would also empower the Department of Education to seek money from schools where loans were forgiven.\u003c/p>\n\u003cp>\"For-profit schools receive the vast majority of their revenue from the federal government in the form of federal student loans and grants,\" the civil complaint notes. \"In 2009, the 15 publicly traded for-profit education companies received 86 percent of their revenues from taxpayer-funded loans.\"\u003c/p>\n\u003cp>The attorneys general who filed the lawsuit are from California, Connecticut, Delaware, Hawaii, Iowa, Illinois, Maryland, Massachusetts, Minnesota, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington and the District of Columbia.\u003c/p>\n\u003cp>\"These rules served as critical protections against predatory for-profit schools that exploit hard-working students — students who are simply trying to invest in their own education and future,\" said New York Attorney General Eric Schneiderman. \"When Washington abdicates its responsibility to protect New Yorkers, we won't hesitate to step in.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>This post includes reporting by KQED's Marisa Lagos.\u003c/em>\u003c/p>\n\u003cdiv class=\"fullattribution\">Copyright 2017 NPR. To see more, visit http://www.npr.org/.\u003cimg src=\"https://www.google-analytics.com/__utm.gif?utmac=UA-5828686-4&utmdt=18+States+Sue+Betsy+DeVos+And+Education+Dept.+Over+Delay+Of+Borrower+Defense+Rule&utme=8(APIKey)9(MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004)\">\u003c/div>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11551769/18-states-sue-betsy-devos-over-her-delay-of-student-loan-protections","authors":["byline_news_11551769"],"programs":["news_6944","news_72"],"categories":["news_18540","news_6188","news_8","news_13"],"tags":["news_20504","news_2924","news_17286"],"affiliates":["news_253"],"featImg":"news_11551770","label":"source_news_11551769"},"news_142555":{"type":"posts","id":"news_142555","meta":{"index":"posts_1591205157","site":"news","id":"142555","score":null,"sort":[1406127635000]},"guestAuthors":[],"slug":"legislation-to-close-loophole-in-gi-bill-college-aid-dies-in-minutes","title":"Legislation to Close Loophole in GI Bill College Aid Dies in Minutes","publishDate":1406127635,"format":"aside","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cfigure id=\"attachment_142570\" class=\"wp-caption aligncenter\" style=\"max-width: 640px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2014/07/Kline.jpg\">\u003cimg class=\"size-medium wp-image-142570\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2014/07/Kline-640x426.jpg\" alt=\"John Kline is a Republican congressman from Minnesota. (Photo courtesy of House Committee on Education and the Workforce)\" width=\"640\" height=\"426\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">John Kline is a Republican congressman from Minnesota. (Photo courtesy of House Committee on Education and the Workforce)\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>By Aaron Glantz\u003c/strong>\u003cbr>\n\u003cstrong>The Center for Investigative Reporting\u003cbr>\n\u003c/strong>\u003cbr>\nLegislation designed to prevent for-profit colleges from gaming the federal aid system and exploiting veterans died within 15 minutes of being introduced earlier this month.\u003c/p>\n\u003cp>U.S. Rep. John Kline of Minnesota, the Republican chairman of the House Committee on Education and the Workforce, quashed the bill by ruling it non-germane to the topic of financial aid being discussed at his July 10 hearing.\u003c/p>\n\u003cp>Kline receives more campaign funds than any other member of Congress from the parent company of the University of Phoenix, a for-profit education giant. In an email, Kline’s spokesman, Brian Newell, said the $48,100 in contributions since 2011 from the Apollo Education Group did not influence the congressman’s decision.\u003c/p>\n\u003cp>“Rep. Kline has long championed policies that encourage a diverse higher education system, and it’s not surprising that organizations that share his views offer their support,” Newell said.\u003c/p>\n\u003cp>At issue was the so-called 90/10 rule, which bans for-profit schools from receiving government funding if they draw more than 90 percent of their revenue from federal student aid programs. The rule excludes tuition assistance from the GI Bill for veterans and from the Department of Defense, which funds education for active-duty military.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Critics say the loophole leads for-profit schools to aggressively target veterans to draw additional federal funding. Many analysts believe closing it would push some for-profit college chains over the 90 percent cap, gutting their support system. The University of Phoenix, for instance, receives 83 percent of its funds from federal programs, according to its most recent filings with the U.S. Securities and Exchange Commission.\u003c/p>\n\u003cp>That figure doesn’t include the nearly $1 billion the company received from the post-9/11 GI Bill over the last five years.\u003c/p>\n\u003cp>“We have a great concern now in the country,” Rep. Susan Davis, a San Diego Democrat, said in offering a measure to close the loophole at the House education committee hearing. She accused some for-profit schools of a “predatory nature,” taking millions of taxpayer dollars while giving veterans little in return.\u003c/p>\n\u003cp>Davis and Rep. Mark Takano, a Democrat from Riverside, then tried to attach a change to the 90/10 rule to a broader bill on higher education. As soon as they finished speaking, Kline ruled the amendment out of order. A party-line 20-13 vote sealed its fate.\u003c/p>\n\u003cp>In introducing their amendment, both Davis and Takano cited a recent \u003ca href=\"http://cironline.org/reports/gi-bill-funds-flow-profit-colleges-fail-state-aid-standards-6477\">story\u003c/a> from The Center for Investigative Reporting.\u003c/p>\n\u003cp>CIR revealed that more than $600 million in GI Bill funding earmarked for Iraq and Afghanistan veterans had gone to California for-profit schools that failed the minimum standards for the state’s own financial aid.\u003c/p>\n\u003cp>The largest recipient of GI Bill money was the University of Phoenix, which does not qualify for separate state Cal Grant funds because of its combination of a low graduation rate and high rate of student loan default at an institution where more than 40 percent of students rely on loans.\u003c/p>\n\u003cp>The University of Phoenix’s San Diego campus received $95 million from the post-9/11 GI Bill over the last five years, more than the entire 10-campus University of California system and all UC extension programs combined.\u003c/p>\n\u003cp>The San Diego campus’s overall graduation rate is under 15 percent, according to the federal Department of Education, and more than a quarter of students there default on their loans within three years of leaving school. No one from any state or federal government agency knows how many veterans who go to school on the GI Bill graduate or find jobs.\u003c/p>\n\u003cp>“I don’t think Congress ever intended this situation to get out of hand the way it has,” Davis said at the hearing.\u003c/p>\n\u003cp>The University of Phoenix did not respond to multiple requests to comment. It has retained a crisis public relations firm, The Clyde Group, and disputed the CIR investigation in other media.\u003c/p>\n\u003cp>In a letter to the editor published in some newspapers that printed CIR’s investigation, Mark Brenner, a senior vice president of the Apollo Education Group, argued that CIR “skewed facts and ignored others to fit an ideological-informed opinion.”\u003c/p>\n\u003cp>Since 2011, when Kline became chairman of the education committee, Apollo has been his largest campaign contributor, according to the nonprofit, nonpartisan Center for Responsive Politics.\u003c/p>\n\u003cp>“It’s enough money to make an impression,” said Viveca Novak, communications director for the group.\u003c/p>\n\u003cp>As Kline made his procedural ruling against tightening the 90/10 rule, he also spoke against the substance of the reform, saying it would limit veterans’ education options improperly.\u003c/p>\n\u003cp>“We should be expanding college access to our veterans, not denying them the opportunity to attend the institution of their choice,” he said.\u003c/p>\n\u003cp>\u003cstrong> \u003c/strong>Since the new GI Bill took effect in 2009, nearly all legislation aimed at modifying it has failed. During that time, the amount of money for-profit education firms have spent on lobbying has skyrocketed.\u003c/p>\n\u003cp>The Apollo Education Group has spent $4.8 million to lobby Congress, the White House and the Department of Veterans Affairs, according to official federal lobbying records. Bridgepoint Education, owner of the largely online Ashford University, has put $4.6 million toward lobbying; Corinthian Colleges Inc. spent $4.4 million. Education Management Corp. -- which controls South University, Brown Mackie College, Argosy University and the Art Institutes chain -- spent $2.8 million.\u003c/p>\n\u003cp>“This is a relatively new industry related to Washington,” Novak said. “They’ve come on very strong, and they focus on members of the committees that matter for them.\u003cstrong>”\u003c/strong>\u003c/p>\n\u003cp>A bill that would have blocked schools with no academic accreditation from receiving GI Bill money is among the reform efforts that have died. Another, which would have barred for-profit schools from spending GI Bill funds on advertising, marketing or recruiting, never got out of committee.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>The recent failure of Davis and Takano’s proposal marks at least the fifth time since 2010 that lawmakers have tried to modify the 90/10 rule.\u003c/p>\n\n","blocks":[],"excerpt":"Republican who quashed law gets lots of campaign funds from parent company of for-profit education giant.","status":"publish","parent":0,"modified":1406083222,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":27,"wordCount":1060},"headData":{"title":"Legislation to Close Loophole in GI Bill College Aid Dies in Minutes | KQED","description":"Republican who quashed law gets lots of campaign funds from parent company of for-profit education giant.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Legislation to Close Loophole in GI Bill College Aid Dies in Minutes","datePublished":"2014-07-23T15:00:35.000Z","dateModified":"2014-07-23T02:40:22.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"142555 http://ww2.kqed.org/news/?p=142555","disqusUrl":"https://ww2.kqed.org/news/2014/07/23/legislation-to-close-loophole-in-gi-bill-college-aid-dies-in-minutes/","disqusTitle":"Legislation to Close Loophole in GI Bill College Aid Dies in Minutes","path":"/news/142555/legislation-to-close-loophole-in-gi-bill-college-aid-dies-in-minutes","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cfigure id=\"attachment_142570\" class=\"wp-caption aligncenter\" style=\"max-width: 640px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2014/07/Kline.jpg\">\u003cimg class=\"size-medium wp-image-142570\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2014/07/Kline-640x426.jpg\" alt=\"John Kline is a Republican congressman from Minnesota. (Photo courtesy of House Committee on Education and the Workforce)\" width=\"640\" height=\"426\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">John Kline is a Republican congressman from Minnesota. (Photo courtesy of House Committee on Education and the Workforce)\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>By Aaron Glantz\u003c/strong>\u003cbr>\n\u003cstrong>The Center for Investigative Reporting\u003cbr>\n\u003c/strong>\u003cbr>\nLegislation designed to prevent for-profit colleges from gaming the federal aid system and exploiting veterans died within 15 minutes of being introduced earlier this month.\u003c/p>\n\u003cp>U.S. Rep. John Kline of Minnesota, the Republican chairman of the House Committee on Education and the Workforce, quashed the bill by ruling it non-germane to the topic of financial aid being discussed at his July 10 hearing.\u003c/p>\n\u003cp>Kline receives more campaign funds than any other member of Congress from the parent company of the University of Phoenix, a for-profit education giant. In an email, Kline’s spokesman, Brian Newell, said the $48,100 in contributions since 2011 from the Apollo Education Group did not influence the congressman’s decision.\u003c/p>\n\u003cp>“Rep. Kline has long championed policies that encourage a diverse higher education system, and it’s not surprising that organizations that share his views offer their support,” Newell said.\u003c/p>\n\u003cp>At issue was the so-called 90/10 rule, which bans for-profit schools from receiving government funding if they draw more than 90 percent of their revenue from federal student aid programs. The rule excludes tuition assistance from the GI Bill for veterans and from the Department of Defense, which funds education for active-duty military.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Critics say the loophole leads for-profit schools to aggressively target veterans to draw additional federal funding. Many analysts believe closing it would push some for-profit college chains over the 90 percent cap, gutting their support system. The University of Phoenix, for instance, receives 83 percent of its funds from federal programs, according to its most recent filings with the U.S. Securities and Exchange Commission.\u003c/p>\n\u003cp>That figure doesn’t include the nearly $1 billion the company received from the post-9/11 GI Bill over the last five years.\u003c/p>\n\u003cp>“We have a great concern now in the country,” Rep. Susan Davis, a San Diego Democrat, said in offering a measure to close the loophole at the House education committee hearing. She accused some for-profit schools of a “predatory nature,” taking millions of taxpayer dollars while giving veterans little in return.\u003c/p>\n\u003cp>Davis and Rep. Mark Takano, a Democrat from Riverside, then tried to attach a change to the 90/10 rule to a broader bill on higher education. As soon as they finished speaking, Kline ruled the amendment out of order. A party-line 20-13 vote sealed its fate.\u003c/p>\n\u003cp>In introducing their amendment, both Davis and Takano cited a recent \u003ca href=\"http://cironline.org/reports/gi-bill-funds-flow-profit-colleges-fail-state-aid-standards-6477\">story\u003c/a> from The Center for Investigative Reporting.\u003c/p>\n\u003cp>CIR revealed that more than $600 million in GI Bill funding earmarked for Iraq and Afghanistan veterans had gone to California for-profit schools that failed the minimum standards for the state’s own financial aid.\u003c/p>\n\u003cp>The largest recipient of GI Bill money was the University of Phoenix, which does not qualify for separate state Cal Grant funds because of its combination of a low graduation rate and high rate of student loan default at an institution where more than 40 percent of students rely on loans.\u003c/p>\n\u003cp>The University of Phoenix’s San Diego campus received $95 million from the post-9/11 GI Bill over the last five years, more than the entire 10-campus University of California system and all UC extension programs combined.\u003c/p>\n\u003cp>The San Diego campus’s overall graduation rate is under 15 percent, according to the federal Department of Education, and more than a quarter of students there default on their loans within three years of leaving school. No one from any state or federal government agency knows how many veterans who go to school on the GI Bill graduate or find jobs.\u003c/p>\n\u003cp>“I don’t think Congress ever intended this situation to get out of hand the way it has,” Davis said at the hearing.\u003c/p>\n\u003cp>The University of Phoenix did not respond to multiple requests to comment. It has retained a crisis public relations firm, The Clyde Group, and disputed the CIR investigation in other media.\u003c/p>\n\u003cp>In a letter to the editor published in some newspapers that printed CIR’s investigation, Mark Brenner, a senior vice president of the Apollo Education Group, argued that CIR “skewed facts and ignored others to fit an ideological-informed opinion.”\u003c/p>\n\u003cp>Since 2011, when Kline became chairman of the education committee, Apollo has been his largest campaign contributor, according to the nonprofit, nonpartisan Center for Responsive Politics.\u003c/p>\n\u003cp>“It’s enough money to make an impression,” said Viveca Novak, communications director for the group.\u003c/p>\n\u003cp>As Kline made his procedural ruling against tightening the 90/10 rule, he also spoke against the substance of the reform, saying it would limit veterans’ education options improperly.\u003c/p>\n\u003cp>“We should be expanding college access to our veterans, not denying them the opportunity to attend the institution of their choice,” he said.\u003c/p>\n\u003cp>\u003cstrong> \u003c/strong>Since the new GI Bill took effect in 2009, nearly all legislation aimed at modifying it has failed. During that time, the amount of money for-profit education firms have spent on lobbying has skyrocketed.\u003c/p>\n\u003cp>The Apollo Education Group has spent $4.8 million to lobby Congress, the White House and the Department of Veterans Affairs, according to official federal lobbying records. Bridgepoint Education, owner of the largely online Ashford University, has put $4.6 million toward lobbying; Corinthian Colleges Inc. spent $4.4 million. Education Management Corp. -- which controls South University, Brown Mackie College, Argosy University and the Art Institutes chain -- spent $2.8 million.\u003c/p>\n\u003cp>“This is a relatively new industry related to Washington,” Novak said. “They’ve come on very strong, and they focus on members of the committees that matter for them.\u003cstrong>”\u003c/strong>\u003c/p>\n\u003cp>A bill that would have blocked schools with no academic accreditation from receiving GI Bill money is among the reform efforts that have died. Another, which would have barred for-profit schools from spending GI Bill funds on advertising, marketing or recruiting, never got out of committee.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>The recent failure of Davis and Takano’s proposal marks at least the fifth time since 2010 that lawmakers have tried to modify the 90/10 rule.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/142555/legislation-to-close-loophole-in-gi-bill-college-aid-dies-in-minutes","authors":["236"],"programs":["news_6944"],"categories":["news_18540","news_8"],"tags":["news_2924","news_6643","news_6644"],"featImg":"news_142570","label":"news_6944"},"news_114680":{"type":"posts","id":"news_114680","meta":{"index":"posts_1591205157","site":"news","id":"114680","score":null,"sort":[1381449556000]},"guestAuthors":[],"slug":"attorney-general-kamala-harris-sues-for-profit-college-company","title":"Attorney General Kamala Harris Sues For-Profit College Company","publishDate":1381449556,"format":"aside","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cfigure id=\"attachment_114699\" class=\"wp-caption alignleft\" style=\"max-width: 300px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/10/KamalaHarris131010B.jpg\">\u003cimg class=\"size-medium wp-image-114699 \" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/10/KamalaHarris131010B-300x225.jpg\" alt=\"Kamala Harris at a press conference on Oct. 10, 2013. Christine Hsu/KQED\" width=\"300\" height=\"225\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Kamala Harris at a press conference on Oct. 10, 2013. Christine Hsu/KQED\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>By Christine Hsu\u003c/strong>\u003c/p>\n\u003cp>California Attorney General Kamala Harris filed a lawsuit yesterday against Santa Ana-based \u003ca href=\"http://http://www.cci.edu/\">Corinthian Colleges, Inc. (CCi)\u003c/a> and its subsidiaries Everest, Heald and WyoTech colleges for false and predatory advertising, securities fraud and intentional misrepresentations to students.\u003c/p>\n\u003cp>Harris said the colleges targeted low-income people, minorities and veterans in the state to enroll as students.\u003c/p>\n\u003cp>Harris alleged that Corinthian promised students, “a hundred percent guarantee of job placement. Our investigation, however, found that this was false information and in some programs, not one single student obtained a job coming out of that program.”\u003cstrong>\u003cem> \u003c/em>\u003c/strong>\u003c/p>\n\u003cp>Kent Jenkins, a spokesman for Corinthian, issued the following statement: “We are committed to regulatory compliance and have robust processes in place to correctly record and disclose the job placement information we receive from our graduates and their employers.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>He added, “we will vigorously defend against this complaint.”\u003c/p>\n\u003cp>Harris issued a call to current and former CCi students to file complaints at the \u003ca href=\"http://http://oag.ca.gov/contact/consumer-complaint-against-business-or-company\">website\u003c/a> of the Attorney General’s Office.\u003c/p>\n\u003cp>She said Corinthian executives had conducted a \"predatory scheme\" that is \"unconscionable.\"\u003c/p>\n\u003cp>There are 24 colleges run by Corinthian in California with approximately 27,000 students enrolled.\u003c/p>\n\u003cp>Heald College has a long history in San Francisco. One of the country's oldest business careers college, Heald was founded in 1863 and now includes 12 campuses across the western United States. Its alumni includes Bank of America founder A.P. Giannini, museum founder M.H. de Young, and former California Governor Hiram Johnson.\u003c/p>\n\u003cp>Here is the lawsuit:\u003c/p>\n\u003cp style=\"margin: 12px auto 6px auto;font-family: Helvetica,Arial,Sans-serif;font-style: normal;font-variant: normal;font-weight: normal;font-size: 14px;line-height: normal\">\u003ca style=\"text-decoration: underline\" title=\"View Document on Scribd\" href=\"http://www.scribd.com/doc/175463827/Document\">Document\u003c/a>\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003ciframe id=\"doc_6010\" src=\"//www.scribd.com/embeds/175463827/content?start_page=1&view_mode=scroll&show_recommendations=true\" frameborder=\"0\" scrolling=\"no\" width=\"100%\" height=\"600\">\u003c/iframe>\u003c/p>\n\n","blocks":[],"excerpt":"Suit alleges that some of the college's programs guaranteeing jobs lead to no jobs whatsoever.","status":"publish","parent":0,"modified":1381553026,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":14,"wordCount":278},"headData":{"title":"Attorney General Kamala Harris Sues For-Profit College Company | KQED","description":"Suit alleges that some of the college's programs guaranteeing jobs lead to no jobs whatsoever.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Attorney General Kamala Harris Sues For-Profit College Company","datePublished":"2013-10-10T23:59:16.000Z","dateModified":"2013-10-12T04:43:46.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"114680 http://ww2.kqed.org/news/?p=114680","disqusUrl":"https://ww2.kqed.org/news/2013/10/10/attorney-general-kamala-harris-sues-for-profit-college-company/","disqusTitle":"Attorney General Kamala Harris Sues For-Profit College Company","customPermalink":"2013/10/11/ag-kamala-harris/","path":"/news/114680/attorney-general-kamala-harris-sues-for-profit-college-company","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cfigure id=\"attachment_114699\" class=\"wp-caption alignleft\" style=\"max-width: 300px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/10/KamalaHarris131010B.jpg\">\u003cimg class=\"size-medium wp-image-114699 \" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/10/KamalaHarris131010B-300x225.jpg\" alt=\"Kamala Harris at a press conference on Oct. 10, 2013. Christine Hsu/KQED\" width=\"300\" height=\"225\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Kamala Harris at a press conference on Oct. 10, 2013. Christine Hsu/KQED\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>By Christine Hsu\u003c/strong>\u003c/p>\n\u003cp>California Attorney General Kamala Harris filed a lawsuit yesterday against Santa Ana-based \u003ca href=\"http://http://www.cci.edu/\">Corinthian Colleges, Inc. (CCi)\u003c/a> and its subsidiaries Everest, Heald and WyoTech colleges for false and predatory advertising, securities fraud and intentional misrepresentations to students.\u003c/p>\n\u003cp>Harris said the colleges targeted low-income people, minorities and veterans in the state to enroll as students.\u003c/p>\n\u003cp>Harris alleged that Corinthian promised students, “a hundred percent guarantee of job placement. Our investigation, however, found that this was false information and in some programs, not one single student obtained a job coming out of that program.”\u003cstrong>\u003cem> \u003c/em>\u003c/strong>\u003c/p>\n\u003cp>Kent Jenkins, a spokesman for Corinthian, issued the following statement: “We are committed to regulatory compliance and have robust processes in place to correctly record and disclose the job placement information we receive from our graduates and their employers.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>He added, “we will vigorously defend against this complaint.”\u003c/p>\n\u003cp>Harris issued a call to current and former CCi students to file complaints at the \u003ca href=\"http://http://oag.ca.gov/contact/consumer-complaint-against-business-or-company\">website\u003c/a> of the Attorney General’s Office.\u003c/p>\n\u003cp>She said Corinthian executives had conducted a \"predatory scheme\" that is \"unconscionable.\"\u003c/p>\n\u003cp>There are 24 colleges run by Corinthian in California with approximately 27,000 students enrolled.\u003c/p>\n\u003cp>Heald College has a long history in San Francisco. One of the country's oldest business careers college, Heald was founded in 1863 and now includes 12 campuses across the western United States. Its alumni includes Bank of America founder A.P. Giannini, museum founder M.H. de Young, and former California Governor Hiram Johnson.\u003c/p>\n\u003cp>Here is the lawsuit:\u003c/p>\n\u003cp style=\"margin: 12px auto 6px auto;font-family: Helvetica,Arial,Sans-serif;font-style: normal;font-variant: normal;font-weight: normal;font-size: 14px;line-height: normal\">\u003ca style=\"text-decoration: underline\" title=\"View Document on Scribd\" href=\"http://www.scribd.com/doc/175463827/Document\">Document\u003c/a>\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003ciframe id=\"doc_6010\" src=\"//www.scribd.com/embeds/175463827/content?start_page=1&view_mode=scroll&show_recommendations=true\" frameborder=\"0\" scrolling=\"no\" width=\"100%\" height=\"600\">\u003c/iframe>\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/114680/attorney-general-kamala-harris-sues-for-profit-college-company","authors":["1501"],"programs":["news_6944"],"categories":["news_18540","news_6188","news_8"],"tags":["news_2924","news_61","news_854","news_19379"],"featImg":"news_114699","label":"news_6944"}},"programsReducer":{"possible":{"id":"possible","title":"Possible","info":"Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. 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