Department of Education shuts down for-profit Corinthian Colleges

everest college

Federal regulations are designed to make sure that colleges that don’t offer a good value to students, don’t get student aid money.

Corinthian Colleges will put 85 of its U.S. campuses up for sale and close the remaining dozen under an agreement with the U.S. Department of Education. The for-profit college chain operates campuses under the names Heald, Everest and WyoTech. It has more than 70,000 students across North America. It’s the largest-ever college, by enrollment, to be shut down in this way.

 

 

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Colleges with the fastest rising tuitions will have some explaining to do to the Department of Education

Penn state

Penn State tops the list for public in-state colleges.

No college wants to top these rankings. Today the Education Department unveils a website on which it is publishing for the first time lists identifying the nation’s most expensive colleges.

 

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For-Profit Colleges Face More Government Regulations

crushing-student-debt

The debt burden and default rates for graduates are particularly high at for-profit colleges.

It seems too good to be true, at least for companies. Customers arrive at for-profit colleges by the million. With them comes billions of dollars of federal student grants and loans, to be poured into corporate coffers. Public subsidies may provide up to 90% of revenue; the government bears the risk of loan defaults. This business model has served firms rather well. Its effect on students and taxpayers is less clear. This summer, however, a brawl over for-profit colleges has exploded at last.

 

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Government Takeover of the Student Loan System

College fund

If the Senate approves the  final piece of legislation, millions of students will get their federal loans directly from the Department of Education

“Government takeover!” So yelled the many critics of President Barack Obama’s health care reform bill. But in their focus on the main event, Republicans seem to have all but ignored another part of the legislation that more precisely fits their rhetoric. In addition to securing the President a victory on health care, the House bill took him one step closer to delivering on a promise to reform the college-student-loan system. If a final piece of legislation before the Senate is approved, millions of students will get their federal loans directly from the Department of Education. In other words, the federal government would sweep aside private competitors in the biggest change to the federal student-loan program since its creation in 1965. It’s a legitimate government takeover.

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