Politico: Barack Obama cracks down on for-profit colleges

[OmahaBlueDog]

The new regulation, which would take effect in 2016, would flag programs as weak if their graduates’ average loan payments ate up 8 percent or more of their total earnings or 20 percent or more of their discretionary earnings. They would also be flagged if the default rate for former students exceeded 30 percent.

Any program that failed those tests two out of three consecutive years would face a crippling penalty: The Education Department would refuse to extend financial aid to its students. That would choke off the colleges’ primary source of revenue — and effectively force them to close the targeted programs.

Duncan stressed that programs would have a few years to improve before facing sanctions. “The goal is not program elimination,” he said. “The goal is program improvement.”

But the administration has shown little patience with programs it regards as bad actors. Obama’s new Consumer Financial Protection Bureau is suing one for-profit institution, ITT Education Services, for predatory lending practices.

Read more: http://www.politico.com/story/2014/03/barack-obama-education-for-profit-colleges-104661.html#ixzz2vuL5qdd6

[Cha]

1. Thanks Obama!

thanks Omaha

[NuclearDem]

2. Good. Places like ITT Tech are horrible.

[OmahaBlueDog]

3. They routinely overcharge for courses offered at Community Colleges and University Extensions

..at a small fraction of the ITT price.

[1000words]

4. Wall Street ... not so much.

[JI7]

5. GOOD, wasn't there some lawsuit involving some donald trump for profit school ?

[OmahaBlueDog]

7. Forbes: Donald Trump University Lawsuit Is Lesson For All For-Profit Colleges

Complete article at: http://www.forbes.com/sites/carolinehoward/2013/08/27/donald-trump-universitys-big-lesson-for-all-for-profit-schools/

The $40 million lawsuit Donald Trump is facing for operating a phony university highlights how for-profit colleges are increasingly under a microscope and, in some cases, in the cross hairs of federal prosecutors, state attorney generals, and disillusioned students.

Over the weekend and yesterday New York Attorney General Eric Schneiderman filed a suit against Trump, Trump University and former president of Trump U Michael Sexton for misleading more than 5,000 customers across the country into buying expensive courses to learn the billionaire developer’s real estate investing secrets and techniques. Instead, the AG alleges Trump U’s seminars and mentorship programs failed to deliver on their widespread marketing campaign: “Just copy exactly what I’ve done and get rich.”

Trump, uncharacteristically defensive, has labeled the “frivolous suit” “thug politics” by a “lightweight” “political hack.” He took to the waves (Fox & Friends, Morning Joe, Twitter), countering that the people who signed up and paid for his courses gave him a 98% approval rating. Yesterday he launched 98percentapproval.com, a site that offers such testimonials as “Great presentation!” and “Thank you for a great, informative, energizing, helpful, practical & fun seminar.” All reviews are vaguely ID’d only by initials.

Trump has always brawled in a big, bad, hyped-up way, whether it’s challenging President Obama’s birth certificate, hating on Rosie O’Donnell or tussling with Scottish officials over proposed wind turbines overlooking his new golf course. Only this time, his opponents are consumers who have risked thousands of dollars for not much more, according to Schneiderman, than diploma-like Certificates of Completion with Trump’s signature and an opportunity to have their picture taken with a life-size photo of the celebrity billionaire valued at $3.2 billion.

[Jamaal510]

6. The Everest guy

probably won't be too happy about this piece of news.