GAO Revises Report on For-Profits

Yesterday there were a number of news articles on the Government Accountability Office’s revisions to its report on recruiting practices of the for-profit education sector. The controversial report was the basis for an August hearing of the Senate Committee on Health, Education, Labor and Pensions Committee hearing held by Senator Harkin (D-IA).

 

In a letter Tuesday, Senator Mike Enzi (R-WY) asked the GAO to withdraw the testimony made regarding the report and explain why the changes were made. The Washington Post detailed significant changes to the GAO report in an article published today.  The reported changes raise serious questions about the validity of the GAO’s study and offers insight into Senator Enzi’s request to withdraw the testimony.

Here are excerpts from the Washington Post article:

The revised report, posted Nov. 30 on the GAO Web site, changed some key passages. In one anecdote cited as an example of deceptive marketing, the GAO originally reported: “Undercover applicant was told that he could earn up to $100 an hour as a massage therapist. While this may be possible, according to the [Bureau of Labor Statistics] 90 percent of all massage therapists in California make less than $34 per hour.”

 

The revised version states: “While one school representative indicated to the undercover applicant that he could earn up to $30 an hour as a massage therapist, another representative told the applicant that the school’s massage instructors and directors can earn $150-$200 an hour. While this may be possible, according to the BLS, 90 percent of all massage therapists in California make less than $34 per hour.”

 

In another example, the report originally stated that a college representative “told the undercover applicant that by the time the college would be required by [the] Education [Department] to verify any information about the applicant, the applicant would have already graduated from the 7-month program.”

 

The revised version states that “the undercover applicant suggested” that possibility and the “representative acknowledged this was true.”

 

There were several other significant edits to the examples detailed in the report.

Gainful Employment Rule Coming Out Today

The Department of Education is set to release the Gainful Employment rule today according to several news sources:

Chronicle of Higher Education – Education Department Takes Aim at For-Profits With Student-Debt Rule

Inside Higher Ed – Splitting the Difference on Gainful Employment

Associated Press – Proposed federal rules target for-profit colleges

Wall Street Journal – U.S. to Scrutinize For-Profit Career Colleges

Washington Post – Administration proposal aims to tighten oversight of for-profit colleges

Reuters – U.S. rule would force education cos to show work

New York Times – U.S. Releases Rules on For-Profit Colleges

USA Today –  Plan would crack down on for-profit college industry