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.

For anyone who viewed ‘Gainful Employment’ as an honest effort to address the educational needs of students preparing to enter the workforce at the worst moment since 1930, the latest salvo by the Justice Department will dispel that wishful thinking.

With a one-two punch, …