Officials from for-profit colleges, with some of the largest online programs in the U.S., painted the industry as a fiscally sound choice for students after Rep. Elijah Cummings, D-Md., called for an investigation into “lavish” CEO pay at for-profit schools.
Cummings said Dec. 13 that the House Committee on Oversight and Government Reform would investigate executive pay at 13 for-profit programs, some with high student loan default rates and a checkered history of false claims used to dupe students into signing up for massive loans.
Committee members will decide whether for-profit schools, which depend on federally guaranteed student loans for the vast majority of their profits, were awarding executives fairly while student dropout rates and loan defaults rose at many prominent for-profit colleges.…Read More