California asked a court on Wednesday to order Bridgepoint Education to turn over hundreds of thousands of records as the state investigates complaints of false advertising at for-profit colleges.
The Consumer Financial Protection Bureau’s Holly Petraeus goes on the attack, saying a federal rule encourages for-profit colleges to exploit veterans. Federal aid can make up no more than 90 percent of a for-profit college's revenue. But veterans' benefits don't count. In testimony before the Senate Homeland Security and Governmental Affairs Committee, Petraeus will say the rule gives "some for-profit colleges an incentive to see servicemembers as nothing more than dollar signs in uniform and to use some very unscrupulous marketing techniques.”
House Education Committee Chairman Rep. John Kline, who saw a dramatic upsurge in campaign contributions from for-profit colleges in recent months, is pushing legislation that would help the industry preserve its access to federal student loans.
Ann Arbor's University of Phoenix campus is in the process of shuttering and is not accepting new students, although the closing will likely take at least a year, according to a school official.
It's a good time to be an investor in the NASDAQ-traded company with the ticker symbol LOPE. As of Friday its share price had risen more than 48 percent this calendar year, and more than 80 percent over the past 12 months. In its first quarter earnings call held May 7, a Deutsche Bank analyst asked the company's CEO how a recent initiative might affect its marketing strategy going forward.