Podcast Series: Innovations in Education

Explore the full series of eCampus News podcasts hosted by Kevin Hogan—created to keep you on the cutting edge of innovations in education.

Experts: Accusations could make students wary of for-profit colleges

Students claim they were misled by Kaplan University advisors.

Members of Congress likely won’t be swayed by the latest round of damaging personal accounts from former Kaplan University students released last week, but prospective students might exercise a bit more caution while researching online college offerings, industry experts said.

Change.org, a nonprofit organization specializing in web-based petitions, is publishing a series of personal stories from former students at Kaplan – one of the nation’s largest online institutions – who claim they were misled by the university and saddled with thousands in student loan debt.

The Change.org accounts are the latest in a string of charges claiming the fast-growing for-profit college industry has used unseemly recruiting practices and student loan tactics that lead students to a job that doesn’t pay enough to afford massive loan repayments.…Read More

For-profit regulation could survive Senate vote, sources say

Democratic senators are expected to fight the House's "gainful employment" amendment.

Many of the country’s largest online colleges still could be subject to the Obama administration’s regulations on for-profit schools, despite a vote by the Republican-controlled House of Representatives to stop any attempt to enforce the proposed rules.

House Republicans, along with more than 50 Democrats, passed an amendment Feb. 18 that would block the U.S. Education Department (ED) from using funds to initiate “gainful employment” regulations on for-profit colleges—including the University of Phoenix and other large online-learning institutions.

However, the Democratic-controlled Senate isn’t likely to approve the defunding of “gainful employment” rules, according to sources familiar with Capitol Hill negotiations on the matter. The sources said they would only speak to eCampus News anonymously because senators are still deciding how the for-profit amendment will be handled in a Senate vote.…Read More

Analysis shows high student loan default rate at for-profit colleges

For-profit schools took in $23 billion in government aid during the 2008-09 school year.

A new U.S. Department of Education (ED) report details rising loan default rates among students at for-profit colleges as the for-profit industry – including some of the country’s largest online education programs – fends off government regulations that could limit their federal aid.

About 25 percent of students at for-profit institutions – such as the University of Phoenix and Kaplan University – defaulted on their school loans within three years of starting repayment, according to the federal analysis, released Feb. 4.

That default rate is up from a 21-percent rate at for-profit colleges in late 2009, according to ED. For-profit college students, who make up about 15 percent of all U.S. students, now account for 46 percent of all student loan defaults.…Read More