Danny Weil, Truthout:
On Friday, April 13, 2012, Courthouse News reported a class-action lawsuit by students filed in federal court against the Art Institute of California and its owner, Educational Management Corporation (EDMC). As reported in Truthout, Sen. Olympia Snowe’s (R-Maine) husband, former governor of Maine John McKernan, is chairman of the board of EDMC and a former CEO of the company. The company also faces an $11 billion false claims lawsuit by the federal government and 11 states.
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Like subprime mortgages, for-profit colleges are a scam driven by payment of commissions to sales staff known as recruiters.
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There is a vast network of former and current government officials who actively participate in the for-profit college swindle. Some of the conspirators are well known, and include: Mitt Romney, Rep. Virginia Foxx (R-North Carolina), John Kline (R-Minnesota), Alcee Hastings(D-Florida), Trent Lott (R-Mississippi), Lamar Alexander (R-Tennessee), Steve Gunderson (R-Wisconsin), Virginia Democratic Party Chairman Brian Moran, Snowe, Feinstein, Nancy Pelosi (D-California), and John Boehner (R-Ohio). The group also includes Obama administration officials and supporters such as Lanny Davis, Anita Dunn, Hilary Rosen, Anthony Miller and Charles Rose.As I have previously written, you won’t read about any of this in The Washington Post because the Post owns a predatory for-profit college outfit known as Kaplan University…
I have to say that I think that there’s plenty of blame to go around. Kids are not being careful enough about getting into debt. But our leaders should set an example, and setting up tricksy schemes to plunge kids into debt before their lives have really even begun is not a positive example.
Watch the right turn this into a Democratic scandal.