Report Finds For-Profits Defraud Students

A new report by the Century Foundation found that nearly all allegations of fraud submitted to the U.S. Department of Education by students cite for-profit colleges, reports The Chronicle of Higher Education.

The report shows that 98.6 percent of 98,868 borrower defense-to-repayment claims were from students who said they had been defrauded by for-profit schools. Most claims were made against now-defunct Corinthian Colleges. But, the Chronicle reported, "even when Corinthian Colleges was removed from the analysis, for-profit institutions accounted for 94 percent of the claims."

The borrower defense-to-repayment process was created under the Obama administration to simplify the process for students seeking forgiveness of federal loans after being defrauded by colleges, reported the Chronicle. But there are currently tens of thousands of unresolved claims. 

The first of several negotiated rule-making hearings to rewrite the rule took place this week, reported the Chronicle.


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The Chronicle of Higher Education