How to Reduce the Risk of Lawsuits Against For-Profit Schools

     It has been an eventful week in the for-profit education industry.  First, Career Education Corporation’s CEO resigned after acknowledging that Career Ed had falsely reported job-placement rates.  Career Ed owns a variety of for-profit schools ranging from Le Cordon Bleu cooking schools to Sanford Brown and Brooks colleges.  Career Ed lost almost half. . .
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Armed Service Members – Don’t They Take Enough Risk Already??

 GI’s take enough risk in their lives, what with IEDs, suicide bombers and the like.  The news today was that for-profit schools are targeting them as well. The Department of Veterans Affairs reported disbursing $4.4 billion in academic benefits for GIs in the 2010-2011 academic year.  Of that amount, more than $1 billion went to. . .
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How To Uncover False Placement Rates

There is growing evidence that for-profit schools are using similar tricks to manipulate their placement rates (my thanks to Stephen Burd, and his post on the subject here).  I have seen these tricks myself in trade school fraud cases, and it good to see them getting some public attention.  If you think your school’s placement. . .
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For-Profit CEO Pay Is 26 Times Public University Presidents??

Yup.  That’s what the Department of Education reported in February 2011.  Where do you think that money is coming from? It comes from students and stock market investors, that’s where.  Students invest in tuition in hopes of getting a degree that will help them get a job.  It doesn’t matter if the student invests this. . .
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Do You Have A Student Loan You Can’t Repay?

  If you ever went to college or a trade school, you probably had to take out a student loan.  You probably didn’t know much, if anything, about student loans when you signed on the dotted line.  You probably assumed that the school was arranging the best loan for you that it could.  Finally, you. . .
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Has your school been sued?

It occurred to me that it would be a good idea to make a list of trade schools that have been sued.  If you went to one of those schools and feel you were wronged, you should consider contacting the lawyers in these cases.  I don’t know the status of the cases, but even if. . .
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And the winner of today’s award for “best omission” is…

Today, Arizona Business & Money reported that Grand Canyon Education Inc. is doing better than other for-profit school corporations.  It quoted Grand Canyon’s CEO Brian Mueller as saying that the company is moving towards brick-and-mortar programs because “a Phoenix-based student is worth up to three times more than an online student because Phoenix students are. . .
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Supreme Court says “Yes” to Let the Buyer Beware!

Yesterday, the U.S. Supreme Court decided a case – AT&T Mobility v. Concepcion – which should make all consumers nervous.  In the AT&T Mobility case, the Supreme Court ruled that it’s just fine for consumers to give up their rights to participate in a class action lawsuit in the fine print of a contract.  This may. . .
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An outstanding one page image about the trade school system

Try this link:  http://colorlines.com/archives/2011/04/for-profit_schools_exploitation_by_the_numbers_a_visual_primer.html.  In one frame, it captures for-profit school recruiting, debt and outcomes.  My respect to Susie Cagle for accomplishing so much in so little space.  The image speaks for itself and I have nothing to add.

Does “let the buyer beware” apply to picking a school?

When students take action against their schools, “individual responsibility” is usually the school’s first line of defense.  “If the students had only looked more carefully, thwouldn’t have this problem.”  It’s a real defense, especially these days when people think there are too many lawsuits (until it’s one of them who has been harmed).  In my. . .
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