The story states in part: "The vast majority of these institutions’ revenue comes from consumers, many of whom rely on loans and Pell grants. That means the federal government is essentially bankrolling schools that often produce very discouraging outcomes. A 2010 report found that only 22 percent of first- and full-time students pursuing bachelor’s degrees at these institutions in 2008 graduated, compared with 55 percent and 65 percent of students at public and private nonprofit universities, respectively. Meanwhile, nearly three-fourths—72 percent—of the programs offered at for-profit colleges produce graduates who earn less than high school dropouts. And for-profit colleges account for 46 percent of people who entered repayment on their student loans in 2010 and were in default by 2012."
"Much of the scrutiny has centered on the catastrophe surrounding Corinthian Colleges, Inc., once one of the largest for-profit higher-education companies in North America operating some of the best-known vocational-degree institutions, such as Everest and Heald. The beleaguered corporation recently agreed to sell or close dozens of its U.S. campuses as part of a deal with the Department of Education, which last summer froze the institution’s financial-aid payments after it failed to provide the DOE with a series of required records, including job-placement and attendance statistics. And just last week, the Ministry of Education in Ontario announced that it was shutting down the company’s Everest College campuses in the Canadian region, leaving an estimated 2,400 students in limbo."