In a TV interview on Friday, Larry Earle, the CEO of shuttered San Antonio-based for-profit Career Point College, gave the game away about what many for-profit colleges are all about. Defending his closed school against findings by the U.S. Department of Education that Career Point had engaged in financial aid fraud and mismanagement, and facing lawsuits filed by a growing number of his former students, Earle told an interviewer, “None of my salesmen have ever been accused of lying to students.”
Heritage College closed its doors only a few days after an appeals court cleared the way for a trial on whether the school deliberately falsified attendance records and grades to receive about $32.8 million in federal funding.
In a huge victory for opponents of for-profit schools, a federal panel voted Thursday to shut down the largest accrediting agency of private sector colleges and universities amid intense criticism in recent years for loose oversight of educational institutions.
Corinthian Colleges will shut down all of its remaining 28 ground campuses, displacing about 16,000 students, less than two weeks after the U.S. Department of Education announced it was fining the for-profit institution $30 million for misrepresentation.