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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Y Combinator – Nonprofit startups are just like their counterparts co-founders.

Is there a difference between building a successful for-profit and nonprofit startup?  Not much, according to Paul Graham, founder of Y Combinator, there isn’t much of a difference. Y Combinator is an elite accelerator program in Mountain View, Calif., that accepted a nonprofit for the first time this month, “You could never tell there was a nonprofit mixed in,” he said in a phone interview recently.


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Senate report blasts for-profit colleges

Sen. Tom Harkin (D-Iowa) presents findings from a two-year investigation into the for-profit college industry.

Sen. Tom Harkin (D-Iowa) on Monday unveiled an exhaustive report on a two year investigation of the for-profit higher education industry.  The report on the colleges’ business practices, highlighting schools that charge excessively high tuition and shortchange academic investments in order to maximize revenues.




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For-Profit Colleges Face More Government Regulations


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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Pot-Selling Pioneers in Colorado Try to Make a Profit


At the Farmacy they use chopsticks to handle pot because some customers have weak immune systems.

Anyone who thinks it would be easy to get rich selling marijuana in a state where it’s legal should spend an hour with Ravi Respeto, manager of the Farmacy, an upscale dispensary here that offers Strawberry Haze, Hawaiian Skunk and other strains of Cannabis sativa at up to $16 a gram.

(Special July 12th live webcast to discuss emerging opportunities in marijuana industry.)

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Trade Schools Exploiting Recession and Cashing in on Federal Aid

culinary school

A 15- or 21-month program at Le Cordon Bleu’s culinary school in Portland, Ore. costs $41,000.

One fast-growing American industry has become a conspicuous beneficiary of the recession: for-profit colleges and trade schools.  At institutions that train students for careers in areas like health care, computers and food service, enrollments are soaring as people anxious about weak job prospects borrow aggressively to pay tuition that can exceed $30,000 a year.


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