Published: August 2012

The ED should stop rampant for-profit college fraud

In light of mounting evidence that many for-profit colleges are wasting taxpayer dollars by failing to prepare students for a career post-education, a federal court recently held up the Department of Education's authority to enforce the statutory requirement that career education programs receiving federal funding, whether at for-profit, public or nonprofit colleges, “prepare students for gainful employment in a recognized occupation.” However, the court vacated the finalized gainful employment rule because it found that the Department had not offered a sufficient rationale for its loan repayment rate threshold. The ruling means taxpayers will continue to fund the worst career education programs that consistently leave students, including veterans, low-income students, and students of color, mired in debt they cannot repay.

In a letter to Secretary Duncan, Consumer Action and supporting advocates asked the Department of Education to enforce the statutory requirement ensuring educational programs do indeed prepare students for gainful employment, avoiding the wasteful spending of taxpayer money by unscrupulous for-profit colleges.

Lead Organization

The Institute for College Access & Success (TICAS)

Other Organizations

American Association of University Women (AAUW) | American Federation of Teachers Campus Progress Action | Center for Public Interest Law | Children’s Advocacy Institute | Children’s Defense Fund | Consumer Action | Consumers Union | Council for Opportunity in Education Crittenton Women’s Union | The Education Trust | Hispanic Association of Colleges & Universities | The Institute for College Access & Success | The Leadership Conference on Civil and Human Rights | League of United Latin American Citizens | Mississippi Center for Justice | NAACP | National Association for College Admissions Counseling | National Consumer Law Center (on behalf of its low-income clients) | National Consumers League | National Education Association | NCLR (National Council of La Raza) | Neighborhood Economic Development Advocacy Project | NYPIRG | Public Advocates Inc | Public Citizen | Returning Veterans of America United States Student Association U.S. PIRG | Veterans for Common Sense | VetJobs | Young Invincibles

More Information

The Institute for College Access and Success

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The ED should stop rampant for-profit college fraud   (GECoalitionLettertoSecDuncan.August21_.pdf)