The Obama administration will begin choking off the financial lifeline of for-profit colleges whose graduates canâ€™t find well-paying jobs â€” and the move is likely to accelerate a wave of shutdowns for an industry taking assaults from all sides.
Reining in the multibillion-dollar industry has been the administrationâ's goal for most of President Barack Obama's term in office, fueled by complaints that for-profit colleges lure students with misleading promises, then saddle them with debts they canâ€™t pay back despite their newly granted degrees. Its latest tool is the Education Department's long-debated â€œgainful employmentâ€ rule, which requires colleges to track their graduates performance in the workforce and eventually will cut off funding for career training programs that fall short.
The gainful employment regulation applies to community colleges and public universities as well, but for-profit programs fare worst under the ruleâs key evaluation metric, a debt-to-earnings ratio. The industry, which collected about $22 billion in taxpayer loans and Pell Grants in 2013, says it's being unfairly targeted, punished by the government for enrolling high-risk students ” first-generation, adult, low-income and the like ” who are less likely to repay loans but need access to the flexible models that for-profits provide.
Below Are a List of Already Closed For Profit Schools:
• Anthem Career College - multiple locations in Tennessee, closed 2014
• Anthem College - multiple locations, closed in 2014
• Anthem Institute â€“ formerly the Chubb Institute; multiple locations, closed 2014
• Brooks College â€“ California, closed in 2008
• Brown Mackie College - Closed
• Career Colleges of America - California, closed in 2014
• Collins College â€“ Phoenix, Arizona area
• Crown College â€“ Tacoma, Washington (lost accreditation in 2007 and closed)
• Everest College â€“ multiple locations, a subsidiary of Corinthian Colleges, closed 2015
• FastTrain College - Florida, closed in 2014 after FBI raid
• Heald College â€“ multiple locations, a subsidiary of Corinthian Colleges, closed 2015
• ITT Technical College - All Locations , Closed in 2016
• Omega Institute- closed in 2014
• Kee Business College â€“ multiple locations in Virginia, subsidiary of Corinthian Colleges, Inc.
• Victory University - Memphis, Tennessee - closed in 2014
• Sanford Brown College - Closed in 2015
• Wright Career College - Closed in 2016
These For-Profit Colleges are in the process of closing:
• Briarcliffe College - Closing in 2018
• Le Cordon Bleu - In the process of a "teach out", closing in 2016.
• Harrington College of Design - Closing in 2018
• ICDC College - Closing May 31, 2016
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