For Profit Colleges That Defrauded Students
For Profit Colleges That Defrauded Students
If you’ve ever thought about enrolling in a for-profit college, or if you’re currently enrolled in one and have been thinking about transferring to another school, it’s important that you understand the risks involved with attending these types of institutions. Many students who went to for-profit colleges ended up with more debt and no degree—or even worse, they were left jobless without any way to pay off their loans. Here’s what every student (and parent!) needs to know before signing up at a for-profit college:
It’s estimated that as many as 500,000 students attended Corinthian Colleges in the late 2000s and early 2010s. Known for their aggressive marketing tactics and low-quality degrees (many of which were awarded by for-profit schools like Kaplan University), Corinthian had a huge network of schools across the United States. In 2015, Corinthian Colleges was forced to shut down after being sued by the Consumer Financial Protection Bureau for deceptive practices.
After years of investigations into its operations, the California attorney general’s office determined that hundreds of thousands of students were left with little to no job prospects after completing their degrees at Corinthian Colleges. It’s because many students weren’t aware that they were spending tens of thousands on useless degrees when they enrolled at such institutions (which often resembled trade schools more than traditional colleges).
Education Management Corporation
The Education Management Corporation (EDMC) is a for-profit college company that had a chain of schools and universities, including Argosy University, Brown Mackie College, and South University. In 2015, EDMC was forced to shut down after being accused of defrauding students by falsifying job placement rates and using deceptive recruitment practices.
ITT Tech is a for-profit college with over 130 campuses in 38 states and online. ITT Educational Services Inc., its parent company, was founded by infamous anti-gay activist Richard M. Swigert (1937-2014). The school’s mission statement reads: “ITT Technical Institute is committed to being the premier provider of technology education in the United States.”
ITT Tech has been accused of defrauding students—both intentionally and unintentionally—and several lawsuits have been filed against them by former students who say they were misled into enrolling at ITT Tech. The Department of Education offered an estimated $750 million bailout loan to help keep ITT open after it was reported that their accreditation was under review by the Accrediting Council for Independent Colleges and Schools (ACICS). In 2016 ACICS lost its status as an accreditor due to alleged corruption within their organization; however, this did not affect any schools that were previously accredited by ACICS because they had already been reviewed prior to losing their accreditation status. In September 2016, federal officials announced plans for closing ITT Technical Institutes’ campuses nationwide due to poor student performance on job placement metrics as well as weak academic offerings at some locations across multiple states including Illinois, New York City area schools such as Brooklyn or Queens where no classes are currently being taught due lack funding issues stemming from financial scandals involving owners Jim McCauley who served time behind bars following charges he stole millions from investors through complex Ponzi scheme called “Black Market Trading” which involved insider trading stocks shares owned personally belonging other high ranking executives within public companies such as Boeing Co., Microsoft Corp., Apple Inc., Intel Corp..
Kaplan University is a for-profit subsidiary of Kaplan, Inc. It’s a division of Kaplan Higher Education, a subsidiary of Kaplan, Inc.
Kaplan University was founded in 1976 by Stanley H. Kaplan and his son Steven E. Kaplan as an accredited university providing instruction to working adults through online and campus-based classrooms across the United States and Canada. The online program has been nicknamed the “University School” by some students because it provides access to many services typically offered at traditional universities without requiring any campus attendance (such as career counseling). The option to attend classes in person at one of more than 100 U.S campuses was discontinued in 2017 due to low enrollment rates; however there are still locations where you can take classes on site such as Tampa Bay Florida or Stratford Connecticut among others
Bridgepoint Education is a for-profit education company that operates Ashford University, University of the Rockies and University of the Rockies Online. The company is headquartered in San Diego, California.
Bridgepoint Education was founded in 2000 by David A. Thomas and John D. Mariani.
Career Education Corp
Career Education Corp. (CEC) is a for-profit college and university operator based in Schaumburg, Illinois. It was founded in 1971 by the late William D. Snyder as National Education Centers, Inc., a training school specializing in information technology courses. The school began operating under its current name in 1997 when it acquired Professional Careers Institute (PCI), which had been established by Scott Woodruff in 1996.
CEC operates more than 100 campuses across the United States and Canada through its wholly owned subsidiaries American InterContinental University Online and Brown Mackie College. In March 2012, CEC’s wholly owned subsidiary Le Cordon Bleu Schools of Culinary Arts announced that it would be closing all 11 domestic locations due to declining enrollment rates; however, on May 22nd 2013 Le Cordon Bleu classes resumed at its Toronto location under new ownership, with plans to expand into other Canadian cities later this year.
Grand Canyon University
Grand Canyon University is a for-profit university. It’s owned by an investment group and has a high student loan default rate, low graduation rate, low transfer rate and low job placement rate.
Before you decide to enroll in any college program, make sure you know what you’re signing up for.
Before you decide to enroll in any college program, make sure you know what you’re signing up for. Below are some questions that can help guide your decision-making process:
- Does the school have proper accreditation? All colleges are not created equal. Some universities are accredited by reputable organizations such as the National Association of Schools of Art and Design (NASAD) or the Council on Accreditation (COA), while others may not have any form of accreditation at all. If a college has proper accreditation from a recognized organization, it means that its faculty members have been vetted and certified to teach their fields of expertise; this also ensures that students will receive an education that meets certain standards in terms of teaching quality, curricula development and student services.
- What programs does this school offer? A good college should have many different degree programs available for students who want to pursue careers within different industries or fields of study. For example, if you’re interested in starting your own business someday but don’t know exactly how yet – which is completely normal – then go ahead and enroll yourself into an entrepreneurship program so you can learn valuable skills like creative thinking and leadership abilities along with financial management skills associated with running one’s own enterprise successfully.”
If you’re thinking about going to college, make sure to do your research! Before signing up for any program, check out its accreditation status and read up on online reviews—or ask your friends what they think of the school.