Education Department

Is Justice Dept. Covering Short-Seller Tracks in For-Profit College Scheme?

Holder photoBeginning in 2009, the Department of Education -- mightily aided by Senator Tom Harkin's HELP Committee and a coterie of Wall Street short sellers -- laid siege to the for-profit college sector in a knock-down, drag-out battle to the finish. Their strategic objective was to seriously hobble the profitability of career schools that had devised a competitive, career pathway for predominantly at-risk, low-income, non-traditional and minority students. On June 2, in the infamous Battle of the Beltway, the Department issued its (you should excuse the expression) 'Gainful Employment' rule, which was heralded as a major blow to career schools, whose recruitment rates have since dropped precipitously.

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