google65222aaba5ef6dda
 
The Obama Administration's ongoing efforts to regulate the for-profit college industry have yielded a $30 million fine against Corinthian Colleges and threaten to result in similar penalties against other schools.

On April 14, the U.S. Department of Education informed Corinthian that it intended to fine the for-profit education company's  Heald College subsidiary $29.66 million for misrepresenting its placement rates to current and prospective students and to its accreditors, and for failing to complete with federal regulations requiring the complete and accurate disclosure of its placement rates.  Heald is a 13-campus subsidiary with schools primarily in California and other western states.

The government claimed that it had identified more than 900 separate instances of The government's sanctions also prohibit Heald from enrolling new students.

"This should be a wake-up call for consumers across the country about the abuses that can exist within the for-profit college sector," Education Secretary Arne Duncan said in a statement. "We will continue to hold the career college industry accountable and demand reform for the good of students and taxpayers."

As noted by Inside Higher Ed, the regulation used to punish Corinthian and Heald is a a job-placement requirement adopted in 2010 that "has emerged as a possible tool to crack down on for-profits."  The regulation requires colleges to disclose job-placement rates of graduates in programs that fall under "gainful employment."

With respect to Heald's violations of the accurate job-placement reporting requirements, the Education Department's findings were devastating.

The Huffington Post reported that the government had found that  Heald’s "inaccurate job placement rates constituted a 'substantial misrepresentation,' a finding that allows the department to prohibit the school from accessing federal student aid such as Pell grants and loans that students would use to pay for tuition."

"For example, Heald allegedly misled prospective students by advertising false job placement rates that omitted the fact that many of its graduates simply weren’t counted. It also told prospective students that it confirmed graduates’ employment with the graduate or her employer. In reality, the Education Department said, the school in many cases simply relied on its own career services staff for confirmation."

"Heald also paid staffing agencies to hire its graduates, the Education Department said, and counted them as officially employed in their field. In one case, the department found a Heald graduate who only was employed for two days moving computers and organizing cables."
 


Comments


Your comment will be posted after it is approved.


Leave a Reply