Minnesota Attorney General Lori Swanson, who filed suit in July 2014 against the Minnesota School of Business and Globe University alleging deceptive practices, is proposing new legislation that would require for-profit colleges to be more transparent about job placement and graduation, according to a Star-Tribune report.
The new "borrower's bill of rights" would also require private loan companies -- which often underwrite the expensive tuition at these schools through "preferred" lender arrangements -- to disclose interest rates and repayment options in clear ways not presently required.
According to the Star-Tribune report, "Swanson wants to require loan service companies to give periodic updates to students while still in school, and to 'clearly and conspicuously' disclose the amount owed, interest rates and due dates. It also would require the companies to work with delinquent borrowers to explain their payment options. In addition, Swanson is asking the Legislature to require for-profit colleges to 'clearly disclose' if their course credits are unlikely to transfer to other public or private colleges, a frequent complaint. The legislation also would require for-profit schools to 'act in a student’s best interest at all times' and to disclose job placement and graduation rates for individual programs."