…While some for-profits have attracted federal attention in recent years for higher borrower default rates and questionable marketing practices, states are only more recently taking a harder look at the sector, according to a report released last week by the American Association of State Colleges and Universities.
Jack Conway, Kentucky’s attorney general, is leading a multi-state investigation into the business practices of for-profit colleges. Additionally, he has sued three for-profit colleges in his state, charging violations of consumer protection laws and illegal student recruitment practices. Illinois Attorney General Lisa Madigan also brought suit against the for-profit Westwood College this January, according to the report. …
Changing Dynamics in State Oversight of For-Profit Colleges
Source: Thomas L. Harnisch, American Association of State Colleges and Universities, Higher Education Policy Brief, April 2012