Wednesday, June 18, 2014

Report says states, not federal government, should crack down on abuses by for-profit colleges

The nonprofit National Consumer Law Center says states, not the federal government, should crack down on alleged abuses by for-profit colleges, which are prevalent in some rural areas, but many states are doing little to prevent the abuses in the first place. "Attorneys general in at least 32 states are investigating complaints that for-profit colleges and universities use misleading marketing and leave their students with high debt. Fourteen states have reached the stage of issuing subpoenas," Jon Marcus reports for The Hechinger Report(National Consumer Law Center graphic)
The focus should be on shutting down the programs that don't meet minimum standards, Jonnelle Marte reports for The Washington Post. "The group argues that states' oversight should extend equally to accredited and unaccredited schools to ensure that they aren't using 'deceptive practices' to encourage students to enroll. Some states have been lenient with accredited programs, but they should also be scrutinized since they qualify for financial aid and have the potential to cause greater financial harm, the group says."

"The proposal also suggests that states set strict standards for schools by requiring them to meet minimum graduation rates and place a set number of students in jobs," Marte writes. Attorney and report author Robyn Smith, who works with the National Consumer Law Center, wrote: "Looking at job placement rates is the most direct measure you can have in terms of are schools doing what they promised they will do." The group argues that meeting those minimums should be a condition for state approval to operate.

The report also recommends that "states can ensure that complaints filed against schools are thoroughly investigated and that students are offered some form of relief, the report notes," Marte writes. "They can also make sure that any boards set up to oversee schools are not run by a majority of representatives from the schools themselves." (Read more)

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