Kentucky Attorney General probes six for-profit colleges

Dec 16 (BestGrowthStock) – The business practices of six for-profit
colleges in Kentucky are being investigated, the Attorney
General’s office said on Wednesday.

Attorney General Jack Conway said these practices may
violate Kentucky’s Consumer Protection Act and other state
laws.

“The information we’ve obtained so far about the business
practices employed by some of these proprietary colleges is
troubling.”

The Attorney General’s office, which did not name the
colleges, has asked the institutes to produce information on
their student-loan default rates, student recruitment
practices, and accreditation claims.

“I want to make sure students aren’t being misled and left
owing tens of thousands of dollars in student loans for credits
that don’t transfer or a degree that will not benefit them,”
Conway said.

In October, Florida started investigation into for-profit
colleges run by Apollo Group Inc (APOL.O: ), Corinthian Colleges
(COCO.O: ) and Washington Post (WPO.N: ) for alleged unfair and
deceptive enrollment practices. [ID:nSGE69L0LS]

The for-profit education industry has come under fire from
regulators and the Obama administration for saddling students
with big debts and not fully preparing them for jobs. The
Education Department is finalizing rules that could slow down
enrollment and growth at these colleges.

For a TAKE A LOOK on the sector: [ID:nSGE67G0IH]

The education sector sub-index (.15GSPEDUS: ) has almost
halved since touching a year-high in April.
(Reporting by Megha Mandavia in Bangalore; Editing by Roshni
Menon) (([email protected]; within U.S. +1 646
223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging;
[email protected]))

Kentucky Attorney General probes six for-profit colleges