For-profit Colleges Back In Trouble
For-profit colleges are coming under attack again, this time for allegedly preying on military veterans. Sen. Dick Durbin, D.-Ill., held a forum on the issue in Chicago Monday and plans to introduce legislation later in the day that would eliminate the financial incentive for-profit colleges have to recruit veterans aggressively into pricey programs. It would also require schools to get more of their revenue from sources other than the federal government's educational aid programs.
Last week, Illinois Attorney General Lisa Madigan sued Westwood College, claiming for-profit colleges mislead students enrolled in its criminal justice program, putting them deep in debt and saddling them with a nearly worthless degree for pursuing careers in Illinois law enforcement.
Earlier this month, shareholders sued Career Education Corp., a large for-profit college operator based in Schaumburg, IL., claiming company officials misled investors about job placement rates for graduates, which led to a scandal and contributed to a lower stock price.