For-Profit Colleges Stung in GAO Report

[marmar]

from 24/7WallStreet:



For-profit colleges have had a tough couple of years. First, the colleges were forced to change admissions procedures in a way that has cost them enrollment. Then student loan default rates and job placement rates came under fire. Share prices tumbled, although a decision by the US Department of Education in July delayed implementation of some rules until 2015. Now the schools have taken another shot.

The US Government Accountability Office (GAO) has issued a new report on for-profit education that was prepared at the request of US Senator Tom Harkin (D-IA), a long-time critic of the for-profit sector. This report focused on how closely the colleges adhered to their own policies related to admissions credentials, cheating, and counseling students who withdraw.

The GAO does not identify the 15 schools included in the study by name, but it does say that the study did include the top 5 based on enrollment in 2008. The likely suspects include Apollo Group Inc. (NASDAQ: APOL), Education Management Corp. (NASDAQ: EDMC), The Washington Post Co. (NYSE: WPO), DeVry, Inc. (NYSE: DV), ITT Educational Services Inc. (NYSE: ESI), Strayer Education Inc. (NASDAQ: STRA),. and Career Education Corp. (NASDAQ: CECO).

The complete piece is at: http://247wallst.com/2011/11/23/for-profit-colleges-stung-in-gao-report-apol-edmc-wpo-dv-esi-stra-ceco/#ixzz1eXdQQ353

[Historic NY]

1. Student who attend more likely to default on student loans.....interesting

"In August 2009, we reported that students who attended for-profit colleges were more likely to default on federal student loans than were students from other colleges".

http://www.gao.gov/products/GAO-10-948T (that report)

[JanMichael]

2. kick

nt