Senator Dick Durbin and Senator Tom Harkin have introduced legislation aimed at improving federal coordination of oversight of the for-profit college industry. The Proprietary Education Oversight Coordination Improvement Act would establish interagency oversight committee and improve enforcement of federal laws and regulations of the for-profit industry. The Act is being introduced in the House by U.S. Representative Elijah Cummings.

“For many years, for-profit schools were allowed to operate one step ahead of the law. As the number of investigations by federal, state and local agencies increase, however, I think we are starting to turn the corner,” said Durbin. “With so many agencies involved in these oversight efforts it is important that they are effectively working together to hold these schools accountable to taxpayers who often subsidizes up to 90% of their operations and to students who ultimately are the victims of their schemes. Better coordination will help regulators prevent the ongoing fraudulent and abusive practices of this industry that rakes in more than $25 billion in federal dollars every year.”

SEIU/Adjunct Action is working to improve accountability in career education programs, which are located primarily in for profit colleges and receive up to 90 percent of their revenue from the federal government. On March 14, the Department of Education issued rules that would ensure that career education programs meet minimal standards of performance in preparing students for employment in their chosen field. Under the proposed rules, programs that leave large majorities of students with excessive debt and no opportunity for employment would no longer be eligible for federal funding. To learn more and to sign a petition calling for accountability in the industry, click here.