The For-Profit Education probe continues – How will colleges validate diligence in graduate placement reporting?
In recent news, the Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against one of the major for-profit education providers, accusing the school of luring students with false promises of future employment prospects upon graduation. Additionally, the CFPB claims that the for-profit education provider rushed students through the financial aid application process knowing that most students would not be able to repay their private student loans.
In a news release, CFPB Director Richard Cordray said “the action should serve as a warning to the for-profit college industry that we will be vigilant about protecting students.”
In January, 13 states sent subpoenas demanding documents about financing and recruitment practices from four colleges, including the college involved in the lawsuit. There is little doubt that 2014 will continue to see a coordinated effort by authorities in the for-profit education space, and it’s imperative that the colleges have a plan in place when the CFPB comes knocking.
Institutions of higher education in general, and the for-profit sector specifically, will need to demonstrate to the Department of Justice, the CFPB and the Department of Education that appropriate measures were instituted to verify graduate outcome claims made to prospective students based on credible sources of data and analytical reporting.
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