For-Profit College CEOs Reap Rewards of Weak Regulation
John Sperling, the CEO of the University of Phoenix, has cashed out $59 million in the company’s stock, according to the Huffington Post. Sperling’s shares have increased in value by almost twenty percent in the six weeks since the Department of Education issued a weaker-than-anticipated “gainful employment” rule governing the for-profit education industry.
While many for-profit colleges promise increased earnings after graduation, evidence shows that students at the institutions default on federal loans at a significantly higher rate than their counterparts at public universities. Student advocates expected that the gainful employment rule would force the
