Source:

Chronicle of Higher Education, 7/2/12

Summary:

On Saturday, Judge Rudolph Contreras of the U.S. District Court for the District of Columbia, issued a decision that vacacted several provisions of the Gainful Employment regulations released by the Department of Education last year. The decision in a suit brought by the Association of Private Sector Colleges & Universities found that the two debt repayment measures in the regulations were "arbitrary and capricious." In addition, the ruling vacated a requirement to submit data related to the debt calculation as well as a requirement to seek Department approval for all new programs.

Posted
AuthorKeith Blakeman

Document: 

Inside Higher Ed, 3/21/12

Summary:

Jack Conway, the Kentucky Attorney General and leader of a joint investigation by 23 state attorneys general, revealed some of the areas the group intends to pursue during a hearing held by the U.S. Senate Judiciary Subcommittee on Administrative Oversight and the Courts. In the absence of election-year federal action, these state investigations are the primary way that governments are addressing practices at private sector colleges. However, thus far they have declined to "take on" one of the sector's major players.

Posted
AuthorKeith Blakeman

Document:

Inside Higher Ed, 3/15/12

Summary:

Westwood College will pay $4.5 million to settle a case alleging that the school "inflated its job placement rates and misled prospective students about the average wages of graduates, transferability of course credits and the total cost of Westwood degrees." The College will pay $2 million to Colorado and use the remaining $2.5 million as a restitution fund for students in the College's tuition financing plan.

Posted
AuthorKeith Blakeman
CategoriesLegal Actions

Document:

Inside Higher Education, 1/15/12

Summary:

In a December court filing in the legal challenge brought by APSCU, the Departement "acknowledged using flawed data in a study on the impact of race on student loan repayment rates, having omitted black students from its calculation." The exclusion led the Department to conclude that the "racial composition of students was not a statistically significant contributor to how an institution stacks up on loan repayments."

Posted
AuthorKeith Blakeman

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Chicago Tribune, 1/18/12

Summary:

Sources indicate that the Illinois Attorney General plans to sue Westwood college for misleading students enrolled in criminal justice programs. The lawsuit "claims students who want to be police officers in Illinois need a degree from a school that is "regionally" accredited. Westwood is not, although it is nationally accredited." The suit claims that this problem leaves students in debt with no opportunity for employment in law enforcement in Illinois.

Posted
AuthorKeith Blakeman
CategoriesLegal Actions

Document:

Chronicle of Higher Education, 11/13/11

Summary:

This news article covers recent legal and regulatory actions against private sector colleges including Career Education Corporation and National College in Kentucky. Several law schools have been involved in similar action as well. Most important, "[t]he lawsuits are also raising doubts about regulators' ability to detect job-placement fraud. In many of the recent cases involving for-profits, the alleged deception went unnoticed by the state agencies and accreditors overseeing the colleges."

Posted
AuthorKeith Blakeman

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Chicago Tribune, 8/5/11

Summary:

Link to an article covering admission by Career Education Corp. that some campuses "improperly reported statistics about how successful students are at finding jobs after graduation." The admission relates to evidence uncovered during an internal investigation while preparing a "response to a subpoena issued in May by the New York attorney general."

Posted
AuthorKeith Blakeman
CategoriesLegal Actions

Document:

US District Court for the District of Columbia, 7/12/11

Summary:

A federal court ruling in respoinse to a lawsuit filed by APSCU in January 2011 invalidated the "state authorization" regulation for online programs. The lawsuit challenged three portions of the new regulations: state authorization, the ban on incentive compensation, and the misrepresentation rules. The judge upheld the other two rules.

Posted
AuthorKeith Blakeman

Document:

New York Times, 5/26/11

Summary:

News story about government intervention in the whistle-blower lawsuit targeting Education Management Corporation (EDMC). The US Justice Department and two state attorneys general are intervening in the action that claims the company violated the incentive compensation ban.

Posted
AuthorKeith Blakeman

Document:

New York Times, 5/18/11

Summary:

Letter to the editor from Anthony Guida, Senior Vice President, Regulatory Affairs at Education Management Corporation that accuses the editorial board of unfairly attacking the school. Guida argues that the incentive compensation plan used by the school was legal under the 2002 regulations and that by intervening in a lawsuit by former employees, the federal government is "ignoring the regulatory process in an attempt to retroactively transform lawful conduct into unlawful conduct."

Posted
AuthorKeith Blakeman

Document:

Citizens for Responsibility and Ethics in Washington, 4/19/11

Summary:

Announcement of letter sent by CREW to "Department of Education (DOE) Inspector General Kathleen S. Tighe asking for an investigation into the department’s consultant agreement with former Deputy Undersecretary Robert Shireman." CREW asserts that Shireman continued to receive federal benefits after he left the DOE and became a consultant.

Posted
AuthorKeith Blakeman
CategoriesLegal Actions

Document:

Association of Private Sector Colleges and Universities, 4/1/11

Summary:

Legal response by the APSCU to the Department of Education's motion to dismiss the lawsuit. The document argues for several legal points, including the need for action now, in advance of the regulations taking effect, because "the regulations are currently forcing schools to alter fundamentally their operations and incur undeniable regulatory burdens in order to bring themselves into compliance by the July 1, 2011 effective date."

The APSCU included two supporting exihibits. Exhibit 1 includes the Dear Colleague Letters published in March to clarify the regulations. Exibit 2 includes a statement from Clark D. Elwood, Executive Vice President, Chief Administrative and Legal Officer of ITT Educational Services, Inc. regarding the regulatory burden of the state authorization rule.

Posted
AuthorKeith Blakeman