News

Statement on Department of Education’s Cancellation of $150 Million in Debt from Closed For-Profit Colleges

The following is a statement from Toby Merrill, Director of the Project on Predatory Student Lending, on the Department of Education’s decision to cancel $150 million in loans of former students of closed for-profit colleges. “The Department of Education illegally delayed implementation of the 2016 borrower defense rule, but because our clients in Bauer v. DeVos were…

Former ITT Tech Students Get $600M in Debt Relief from Bankruptcy Judge | Indianapolis Business Journal

While the bankruptcy fight over failed for-profit educator ITT Educational Services continues, the biggest group involved in the legal battle has scored a big victory. In late November, a federal bankruptcy judge in Indianapolis gave final approval to a $600 million settlement that will affect about 750,000 former students of ITT Technical Institute.

Read More

What Do Students Do When a For-Profit College Closes? | The Atlantic

Jasmine Lee had finally found something she was happy with and wanted to pursue. She had been working as a medical assistant at an orthopedic center, and she was enjoying it. But she wanted more. So she figured she should check out the certificate program at Virginia College in Birmingham, where she works.

Read More

Major For-Profit School Chain Closes, Leaving Tens of Thousands of Students Scrambling | The Hill

Thousands of students are reportedly left scrambling after Education Corp. of America (ECA), one of the country’s largest for-profit college chains, announced Wednesday that it would be abruptly closing more than 70 campuses across the United States.

Read More

Students Stunned After Major For-Profit College Chain Closes: ‘They’re Taking Our Dreams Away’ | NBC News

Jasmin Cantú, a student at Brightwood College in Texas, said she was in the middle of taking a medical assistant certification exam Wednesday when a school official came into the classroom in tears, delivering a message Cantú never thought she would hear. The school was shutting down and the last day of classes would be Friday, she said.

Read More

Trump Administration Stymies Release of Salary, Loan Debt Data From Certain Colleges, Advocates Say | CNBC

At a recent conference on financial aid, Education Secretary Betsy DeVos said that every school should help its students graduate with high-quality career prospects and little debt. Students should be equipped, she added, with information that allows them to be responsible consumers.

Read More

Major For-Profit College Chain Collapses, Leaving Students Scrambling | MarketWatch

A major for-profit college chain shut down Wednesday, leaving roughly 20,000 students scrambling to figure out their next steps. Education Corporation of America, the parent company of schools like Virginia College and Brightwood Career Institute, closed its doors after several months of financial turmoil due in large part to declining enrollment.

Read More

Major For-Profit College Chain Abruptly Announces Closure of Dozens of Schools | Associated Press

One of the nation’s largest for-profit college chains announced Wednesday that it was abruptly closing in dozens of locations nationwide, after its accrediting agency suspended approval. Birmingham, Alabama-based Education Corp. of America said it was closing schools operating as Virginia College, Brightwood College, Brightwood Career Institute, Ecotech Institute and Golf Academy of America in more than 70 locations in 21 states.

Read More

Update | ITT Students’ $1.5 Billion Bankruptcy Settlement Approved by Judge

On Wednesday, November 28, the judge in the ITT bankruptcy case gave final approval to the settlement between the student class and the estate of ITT. The settlement is a big victory for former ITT students who were defrauded by the school and provides important relief.

For-Profit College Closes Operations, Surprising Students | Associated Press

One of the nation’s largest for-profit college chains announced Wednesday that it was abruptly closing in dozens of locations nationwide, after its accrediting agency suspended approval. Birmingham, Alabama-based Education Corp. of America said it was closing schools operating as Virginia College, Brightwood College, Brightwood Career Institute, Ecotech Institute and Golf Academy of America in more than 70 locations in 21 states.

Read More