That’s the only word for the University of Phoenix’s conduct if the allegations described in today’s Higher Ed Watch and reported in the Chronicle are true. In a nutshell: Back in the early 90′s there were a series of scandals involving unscrupulous for-profit colleges that tricked students into borrowing lots of money through federal loan programs for which the students received little or nothing in return. The students would quickly default on the loans, the colleges would keep the money, and the federal government, which guarantees student loans, would be left holding the bag. In response, the feds prohibited students from using federal loans to attend colleges where more than 25% of borrowers default within two years. (Last year Congress changed the provision to 30% within three years).
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