[Congressional Record Volume 161, Number 125 (Tuesday, August 4, 2015)]
[Senate]
[Pages S6252-S6253]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           FOR-PROFIT SCHOOLS

  Mr. DURBIN. Mr. President, I have come to the floor many times to 
talk about for-profit colleges and universities. This is a problem and 
a challenge we face. What you need to know are three numbers to 
understand the for-profit college and university industry in America.
  By way of preface, this is the most heavily subsidized private 
business in the United States of America. What are we talking about? 
The largest, the University of Phoenix; Kaplan University; DeVry 
University; Rasmussen; Corinthian--you have heard all the names because 
they advertise constantly, and the money they use to advertise comes 
from Federal taxpayers.
  There are three numbers--and if I were a college professor or law 
school professor, I would say this is going to be on the final--on for-
profit colleges and universities. Ten percent of high school graduates 
attend for-profit colleges and universities--10 percent. Twenty percent 
of all the Federal aid to education goes to for-profit colleges and 
universities. Why so much? They charge so much. Their tuition is so 
high. Ten percent of the students; 20 percent of the Federal aid to 
education; 44 percent of all the student loan defaults in America are 
at for-profit colleges and universities. Ten percent of the students, 
44 percent of the defaults. Why? They charge so much that the students 
can't finish their education or they end up with a worthless diploma. 
That is the reality.
  There is a second reality. This industry is in serious economic 
trouble. Last week we had news of another Federal investigation of a 
for-profit college. In a filing with the Securities and Exchange 
Commission, the University of Phoenix--the largest for-profit college 
and university--revealed it is under investigation by the Federal Trade 
Commission for unfair and deceptive practices.
  This news comes just weeks after the Center for Investigative 
Reporting published a story about the University of Phoenix's thinly 
veiled, dubious marketing and recruiting efforts on military bases--
exploitation of our men and women in uniform. Over the past several 
years, the University of Phoenix has spent millions of dollars to 
sponsor events, including dances, parties, and concerts, on military 
bases. Is it because they love our men and women in uniform? No. It is 
because they want to sign them up. To the University of Phoenix, these 
sponsorships were simply advertising and marketing events to enroll 
more men and women in uniform.
  When you serve our country, we show our appreciation by saying there 
is a GI bill waiting for you at the end of your service--in fact, in 
some cases, while you are still serving--and for your family, too, so 
that you will be prepared after you have served our country to have a 
good life with good education and training and job opportunities.
  These for-profit colleges and universities can smell an opportunity 
to make even more money. The University of Phoenix is after these men 
and women in uniform. They are after tuition assistance dollars. TA is 
a program that provides up to $4,500 a year, so servicemembers can use 
it toward a postsecondary education. And guess what. The money isn't 
counted in the Federal 90/10 calculation that caps the amount of money 
these for-profit schools can receive from the Federal Government. Did 
you hear that? Ninety percent of their revenue comes from the Federal 
Government. That is why for-profit colleges and universities are the 
most heavily subsidized private for-profit businesses in America. To 
for-profit colleges, the money from servicemembers and veterans is 
unlimited

[[Page S6253]]

money. All they have to do is sign them up. And that is what they are 
doing with these sponsorships.
  After the article was published, I wrote to Secretary Ash Carter--
Department of Defense--to ask him to take action. The University of 
Phoenix reportedly is in clear violation of Executive orders limiting 
the access of these schools to our men and women in uniform. The 
Department of Defense has confirmed to me they have opened an inquiry 
into the matter.
  During the Senate's reconsideration of the National Defense 
Authorization Act, I filed an amendment to require the Department to 
post information on Federal and State investigations and lawsuits 
against schools on its online education resources for servicemembers.
  As part of the Tuition Assistance Program, the Department of Defense 
has created what it calls TA DECIDE. This allows servicemembers to find 
information about specific schools when deciding where to use their 
tuition assistance benefits. It includes information such as the 
graduation and default rates. Do you know why? Because once that 
servicemember has used up that GI bill, it is gone. If they waste it on 
one of these for-profit colleges and universities that give them little 
or nothing for their GI bill, they do not get a second chance.
  Of course, servicemembers need accesses to this information. Publicly 
traded companies such as the University of Phoenix have to disclose the 
information to the SEC when they are under investigation. Members of 
the military should know that, as well as the general public. It only 
makes sense.
  My amendment wasn't taken up during the Senate's debate, but last 
week 12 Senators joined me in writing Secretary Carter. This 
commonsense step to ensure better information for servicemembers about 
their education options is one the Department of Defense needs to make.
  I also want to say a word about another for-profit college that is 
notorious for its exploitation of students--Ashford University. Ashford 
University first came to my attention when former Senator Tom Harkin of 
Iowa had an investigation. He took a look at this so-called university 
in his home State of Iowa. Do you know what he found? He found they had 
purchased a small Catholic girls college, purchased their 
accreditation, and then reopened it under the name ``Ashford 
University.'' Do you know how many faculty members there were at 
Ashford? One faculty member for every 500 students. It wasn't a real 
university; it was an online scam. They announced last week they are 
closing down their campus in Iowa. What a heartbreak that must be for 
the people of Iowa--to lose such a stalwart higher education citizen. 
That is the reality.
  I have run into students in Illinois who said they had just graduated 
from college.
  I said: Where did you go?
  They said: Ashford.
  And I thought, oh my goodness. What a disappointment. You have wasted 
your time and your money, you are deep in debt, and that diploma, 
sadly, is worth very little.
  The tide is turning against the for-profit colleges and universities. 
The question is whether this Senate, this Congress, this government 
will step up once and for all and defend those young men and women who 
are wasting their time and money and taxpayer dollars--and in many 
cases GI bill benefits--on these worthless for-profit schools.
  It is time for us to wake up to this reality. I am glad to see this 
industry is finally facing its day of reckoning.
  Mr. President, I yield the floor.
  The PRESIDING OFFICER. The Senator from Massachusetts.

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