Feds Consider Whether to Shut for-Profit College Watchdog

By COLLIN BINKLEY, ASSOCIATED PRESS BOSTON — Jun 11, 2016, 9:48 AM ET

Federal education officials are deciding whether to shut down the nation's biggest accreditor of for-profit colleges over allegations that it overlooked deception by some of its schools.

The Accrediting Council for Independent Colleges and Schools is meant to be a watchdog for hundreds of for-profit schools, wielding the stamp of approval that colleges need to receive federal money. It's one of many accreditors authorized by the U.S. Education Department to ensure the quality of schools. But the nonprofit is being accused of employing lax standards and failing to stop schools from preying on students.

Institutions that have operated under the group's certification include the Corinthian College chain, which closed in 2015 amid fraud allegations, and the ITT Technical Institute chain, which now faces federal charges of fraud. Even after the federal Consumer Financial Protection Bureau began investigating both in 2013, the council found no major problems during its own reviews. In 2014, it included two Corinthian schools on its annual "honor roll."

"If accrediting agencies aren't willing to stand up against colleges that are breaking the law, colleges that are cheating their students, then I don't know what good they do, and I sure don't know why we would let them determine which colleges are eligible for federal dollars," Sen. Elizabeth Warren, D-Mass., said at a congressional hearing on Corinthian last year.

[font size=1]-snip-[/font]