Government Regulators Not Happy with Certain Practices of For-Profit Universities

Association of Educators
November 13, 2013 — 814 views  

America had made a commitment to its veterans of the war in Afghanistan and Iraq that the country will help them in paying for their higher education once they return home.  Post-9/11 GI Bill came into effect in 2009 and according to the latest report by the US Department of Veterans Affairs, the central government has paid at least $30 billion looking after tuition and benefit of the veterans of the war since 2009. The Department also mentioned that this money has helped close to 1 million service members, veterans, as well as their families in completing their technical training or college degrees.

A major part of this money also goes to for-profit universities and colleges. A report presented by Senate Committee on Health Education Labor and Pensions in 2012 mentioned that eight out of ten schools that receive the highest amount of GI Bill dollars come under the category of for-profit.

Chairman of the Committee Accuses Universities of Unfair Practices

Sen. Tom Harkin, who is also the chairman of the committee has accused some of the universities of making use of ‘deceptive and predatory strategies to target veterans and service members for enrollment’ so that they can tap in the federal educational benefits that are given to these veterans and members. 

Last week Sen. Harkin along with Sen. Dick Durbin brought in Protecting Our Students and Taxpayers Act. This act will bring a reduction of 5 percent in the revenue that for-profit universities get from the central financial aid. Presently it stands at 90% but once the act gets passed it will come down to 85%.

Government regulators do not have any problem with educational institutions that are making money. But they do not support the idea of schools using the federal fund money and failing to keep up with their promise of offering degrees which help in landing good jobs.

Action Against Universities Making False Claims

Lois Greisman, who works for the Federal Trade Commission said that the Government regulators are not happy with the false claims given out by universities regarding placement rates, graduation rates, as well as potential earnings after graduation. He further mentioned that such false claims are not just unacceptable, but also illegal, and that is why the agency has ranked it as top priority and is looking into it. He warned that strict action will be taken against universities that violate this law.

The for-profit educational institutes are clearly not happy with this and said that the POST Act is unnecessary and will only harm the future of the students who are planning to complete their post-secondary education.

Association of Educators