Over the past decade, there have been at least 65 state and federal investigations against for-profit colleges. More than 25 of these investigations have ended in court settlements or judgments worth over $1.5 billion. Yet to date, fewer than 35,000 people across the nation have been confirmed to have gotten any money back from their for-profit schools because of these court actions.
Investors claim the school hid the fact that millions of dollars in revenue for the for-profit college came from a sophisticated – and prohibited – strategy of targeting veterans.
Veterans groups and U.S. Sen. Dick Durbin, who have pressed for wider inquiries into for-profit schools, are defending the Defense Department’s decision to withhold new tuition assistance money from the University of Phoenix because of violations of military rules.
The Defense Department is reviewing a response from the University of Phoenix to the military’s decision to ban its recruiters from military facilities and suspend it from enrolling more military personnel under the tuition assistance program, even as Republican senators came to the for-profit school’s defense.
Executives of the parent company of the University of Phoenix attempted to regain investor confidence this morning amid plummeting stock prices and ongoing scrutiny from state and federal officials investigating the for-profit school’s recruiting practices.
Under the expanded GI Bill passed in 2008, veterans of the Iraq and Afghanistan wars have their college tuition paid for, up to $19,000 a year. But for-profit schools are making billions in GI Bill money and leaving veterans with worthless degrees and few job prospects.