A for-profit education company with five locations in California has admitted that some of its health education campuses reported inflated job placement rates for its graduates, reports California Watch. The announcement comes as the Illinois-based Career Education Corporation has tentatively agreed to pay $40 million to settle a class-action lawsuit involving another of its subsidiaries, the California Culinary Academy in San Francisco. In that case, former students claimed they had been duped by the college’s claim that 97 percent of graduates got jobs in the field…
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For-profit higher ed company opens national ad campaign
The national ad campaign by for-profit higher education provider Corinthian Colleges Inc. seeks to draw decision-makers and the broader public into a long-simmering debate over whether the federal government should tighten regulations on colleges that operate for profit, the Washington Post reports. The Obama administration has proposed 14 rules to overhaul the for-profit sector. The most contentious proposal requires programs to demonstrate that they yield “gainful employment” for their graduates and restricts or eliminates federal loan funds to programs that do not. The industry’s practices have been under particular scrutiny since the Government Accountability Office reported last month that recruiters at 15 for-profit colleges allegedly encouraged investigators posing as prospective students to commit fraud on financial aid applications or misled them about such matters as tuition costs and potential salaries after graduation…
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