Compliance & Regulatory

Career College Central Summary:

  • The U.S. Department of Education is turning its back on at least 1,000 borrowers in favor of shielding their former colleges from potentially crippling sanctions that would have resulted from high rates of default on federal student loans.
  • The move, announced late Tuesday and further detailed on Wednesday, concerns an Obama administration decision not to punish as many as 20 schools for loan defaults caused by questionable servicing...

Career College Central Summary:

  • College costs have been rising for decades. Slowing — or even better, reversing — that trend would get more people into college and help reduce student debt.
  • The Obama administration is working on an ambitious plan intended to rein in college costs, and it deserves credit for tackling this tough job.
  • Unfortunately, I don’t think it’s going to work, at least not in controlling tuition at public...

Career College Central Summary:

  • An investor has filed a class-action lawsuit against Pittsburgh-based Education Management Corp. seeking to recoup losses resulting from the for-profit college company's run-ins with federal regulators.
  • The lawsuit contends the investor and others have lost money since August 2012 because the company has come under Justice Department scrutiny for the way it recruited students, and alleged violations of new federal regulations...

Career College Central Summary:

  • ITT Educational Services Inc., an operator of for-profit colleges, said it received a notice that the U.S. Securities & Exchange Commission may take enforcement action related to its loans to students.
  • Scrutiny of ITT Educational’s loan programs increased after accounting and disclosure issues were raised by an SEC review that began last year.
  • The company is in discussions with the SEC and working to head off...

Career College Central Summary:

  • Corinthian Colleges is being sued by the federal Consumer Financial Protection Bureau for what it calls a "predatory lending scheme."
  • The CFPB is seeking more than $500 million for borrowers who used the for-profit education company's private student loans.
  • Corinthian misled students about their job prospects, in some cases paying employers to offer temporary jobs to graduates, the agency said Tuesday....