California Cuts Off State-Funded Student Aid to 154 For-Profit Colleges and Schools
For several years now, it has been an open secret that some for-profit schools have been claiming more than their due share of Federal student loan funding. They’ve been recruiting students by offering them Federal loans to pay nearly all their educational costs, then pocketing the money. Some of those schools have been accused of graduating very few of the students they enroll. And as you may know, the U.S. Congress has been cracking down on such unscrupulous practices.
Now it turns out that California, under the vigilant cost-cutting eye of Governor Jerry Brown, has taken steps to assure that for-profit colleges and universities meet certain stringent criteria before California will offer them funding for student scholarships. To quote from a recent article in the Sacramento Bee . . .
“The new standards eliminate 154 schools that participated in the program during the last academic year and are expected to impact the plans of more than 14,500 students who attend those schools with Cal Grants. The students can continue to receive their grants if they transfer to eligible institutions.”
Note that California community colleges, California state universities, and many other schools will not be affected by these limitations.
Is this just the first shoe dropping? Will for-profit schools soon be subjected to closer scrutiny from the Federal government as well? In this era of cost-cutting, anything could happen.
For-profit schools that enroll lots of students, graduate few, and claim large sums of Federal aid should sit up and take notice. A new age of closer scrutiny and monitoring is at hand.
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