Online Universities: Government Cracks Down on For-Profit Schools
Learn more about the battle between regulators and for-profit institutions before you enroll online.
Starting next year, for-profit schools, including some of the nation's biggest online colleges—like theUniversity of Phoenix, Kaplan University, and Strayer University—will have to provide graduation rate and job placement figures to new students and applicants, the Department of Education has ordered. That's a sample of more than a dozen reforms the government will impose on for-profit schools beginning July 1, 2011. Students will now be able to make more informed decisions, the Department says. "These new rules will help ensure that students are getting from schools what they pay for: solid preparation for a good job," Secretary of Education Arne Duncan said in an Oct. 28 press release.
[Online programs have respect to gain among employers.]
The regulations were announced amid scrutiny of for-profit schools from the Senate Health, Labor and Pensions Committee, a damning report from the Government Accountability Office, and investigations into abuse of taxpayer funded loan money by state attorneys general. In October, for instance, Oregon's treasurer and attorney general sued Apollo Group, the parent company of the University of Phoenix, claiming that the school was eager to boost profits with little regard for its students. A motion filed in