For-Profit Colleges Come Under Increasing Scrutiny Regarding Recruitment of Students and Student Loan Defaults
Author: Ralph Gerstein.; Lois Gerstein.
Source: Volume 17, Number 04, Summer 2016 , pp.77-80(4)
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Abstract:
School administrators at for-profit schools are under greater pressure to charge students large sums of money, or to cut corners on costs, when they are accountable to shareholders and boards of directors. This article illustrates how Federal regulators have been proactive regarding enforcement proceeding by challenging APCs to substantiate earning and placement statistics and representations, and evaulating loan eligibility based on whether programs prepare students for employment with sufficient salaries that they would be able to repay the government-guaranteed loans.Keywords: Association of Proprietary Colleges (APC) v. Duncan; Higher Education Act of 1965; National Vocational Student Loan Insurance Act of 1965; gainful employment; debt-to-earnings ratios; DeVry University
Affiliations:
1: Editor; 2: Editor.