Legal services group sets sights on ‘fraudulent’ for-profit colleges

Attorney Eileen Connor, left, advises Rita Valladares on her student loan debt at the Financial District office of the New York Legal Assistance Group.
Attorney Eileen Connor, left, advises Rita Valladares on her student loan debt at the Financial District office of the New York Legal Assistance Group.

Rita Valladares bounced her toddler son in her lap and gestured at a piece of paper that had her name on it, listed next to the word “defendant.”

“When I see this, it’s just so disappointing, you know?” said Valladares, 23. “My sister’s 19, she wants to get an education; but she’s afraid of getting into this type of situation.”

The piece of paper in question had been sent to Valladares courtesy of Technical Career Institutes (TCI), a for-profit college she had attended for a few weeks in the fall of 2008 before dropping out, dissatisfied with the program. She had unwittingly been enrolled in remedial-level classes she didn’t need for her major, she said, and maintained that she was told there would be no consequences for leaving when she did.

Three and a half years later the letter arrived, notifying her that she was being sued for $1,771.34 in unpaid tuition and fees.

Valladares, who also owes $2,000 to ASA College, which she also attended for a few weeks in 2009 — “That was the worst mistake I made,” she said — is one of hundreds of people who have sought assistance from the New York Legal Assistance Group after bad experiences with some of the city’s many for-profit degree programs.

There are dozens of these schools in New York City alone, their advertisements promising a brighter future plastered all over the subway. Recruiters regularly patrol Fulton Mall in Brooklyn and Grand Concourse in the Bronx, promising financial assistance and help with job placement after graduation.

But according to NYLAG Director of Litigation Jane Greengold Stevens, such promises should not be taken on faith. Too often, she said, these schools prey on vulnerable members of society — low-income New Yorkers and immigrants — looking for a way to better themselves.

“One of the most important things to understand about the process is that when a person walks into one of these places, they walk out an hour later already fully enrolled,” Stevens said.

That initial meeting often involves some form of loan application, even for students with bad credit and limited means, she said. The loans are disbursed directly to the school.

“So what’s actually happening is students are coming out of the schools with burdensome loans and essentially no training,” Stevens said. “Many people end up going back to the very low-paying job they had before.”

Valladares’ mother, Maria, a Honduran immigrant, also attended TCI. She quit her housecleaning job to enroll full-time, studying to become a nursing assistant. She graduated with an associate’s degree but was unable to find a job after failing her CNA certification. She now works two low-paying jobs: as a cashier for Rite Aid and as a teacher’s assistant.

NYLAG provides free legal counsel to low-income New Yorkers, and is working as part of a coalition that includes the Neighborhood Economic Development Advocacy Project to build a case against some of the worst-offending schools. The coalition is also seeking to convince the Department of Education to implement a massive stoppage of collections from people who have been “defrauded” by these schools.

The president of ASA, Alex Shchegol, sees it differently. No education system is perfect, he acknowledged, but emphasized the rigorous selection standards his schools sets for its teachers and ASA’s high graduation rate.

“I’m not a hundred percent aware what’s going on at other colleges,” Shchegol said. “Whether I’m aware of problems with many students, let me put it this way: I think there are more problems in the public sector.”

An advertisement for ASA College is seen on the subway.
An advertisement for ASA College is seen on the subway.

The for-profit college industry is booming, with enrollment growing at a rate of 225 percent between the years of 1998 and 2008 — a significantly higher rate than the 31 percent growth across higher education as a whole during the same period of time.

Earlier this spring, the Department of Education announced that it would renew a push for controversial regulations on for-profit colleges. These regulations, known as “gainful employment,” would tighten underwriting standards for some student loans and protect graduates who are unable to get jobs with enough of a salary to pay back their loans.

Even if it that legislation is passed, it may not come soon enough for Valladares, who is now enrolled at Kingsborough Community College. She likes the program — she calls it a “real” college — but worries about her credit score, which has been affected by her legal woes with TCI and ASA.

“I was told if I keep having these problems with schools, I won’t be able to keep going to Kingsborough,” she said.

Follow Emily Johnson on Twitter @emilyjreports



News
Entertainment
Sports
Lifestyle
Local

Brooklyn man charged in roommate's stabbing death

A Brooklyn man accused of violently stabbing his roommate to death on Monday is in police custody and faces murder charges.

International

Dinosaurs could have survived asteroid strike

It turns out there is a good and a bad time for the planet to be hit by a meteor, and dinosaurs were just unlucky.…

National

OkCupid admits to Facebook-style experimenting on customers

By Sarah McBrideSAN FRANCISCO (Reuters) - OkCupid, a top U.S. matchmaking website, intentionally mismatched users to test its technology, the IAC/InterActive Corp service said on…

Local

MTA fares still increasing 4 percent in newly…

The agency said the 4 percent increases, previously announced in December, will remain steady even as the MTA deals with increasing labor costs.

Movies

Interview: Brendan Gleeson on the way 'Calvary' depicts…

Brendan Gleeson talks about how his new film "Calvary" began over drinks and how his character here is the opposite of the lead in "The Guard."

Movies

'Get on Up' producer Mick Jagger on the…

Mick Jagger, a producer on the James Brown biopic "Get on Up," talks about the time had to tell the singer some bad news and his favorite JB record.

Television

'Glee' star Lea Michele to appear on 'Sons…

"Glee" star Lea Michele has been confirmed as a guest star in the final season of "Sons of Anarchy."

Television

TV watch list, Monday, July 28: 'The Bachelorette'…

See Andi Dorfman make her big choice on tonight's 'Bachelorette' finale.

MLB

Angelo Cataldi: Ryan Howard deserves better from Phillies

Just last week, Ryan Howard endured the embarrassment of a benching that was inevitable, and yet still shocking.

NFL

Larry Donnell has inside track in Giants tight…

Little-known Larry Donnell of Grambling State currently has the inside track, as the second-year player has received the bulk of the first-team reps.

NFL

Computer to Jets: Start Michael Vick over Geno…

Jets general manager John Idzik says the choice of who starts between second-year quarterback Geno Smith and veteran Michael Vick will be a “Jets decision.”

MLB

Yankees looking to trade for Josh Willingham: Report

CBS Sports’ Jon Heyman reported Sunday the Yankees are interested in Twins outfielder Josh Willingham.

Travel

Glasgow: Hey, hey, the gangs aren't here

This European city has done a good job getting rid of its more violent residents and revitalizing with artists.

Education

Babson College tops list of best colleges for…

Money magazine has just released its inaugural list of "The Best Colleges for Your Money" -- and the answers have surprised many. Babson College, which…

Education

NYC teens learn how to develop apps during…

Through a program sponsored by CampInteractive, the high schoolers designed their own community-focused apps.

Tech

The Ministry of Silly Walks app is both…

Monty Python have dug into their back catalogue for cash-ins once more, but with the Ministry of Silly Walks app, they've made something that's fun too.

Comments

1

  1. All for-profit colleges have a bad reputation for their recruitment tactics and for accepting all students without a strict review process. In other words, they are not as competitive as traditional colleges and universities. However, Colleges are not magicians. They cannot guarantee each and every student a promising career (they can only help). This article needs to acknowledge that it is ultimately the student’s responsibility to do their research when selecting a College to attend and if they decide to drop out mid-semester, they must understand that they are still responsible for paying their tuition. This student must understand that if she took courses at TCI College and ASA College and then dropped out mid-semester, then she must pay the tuition. This is common practice at *all* colleges. For-profit colleges are career-focused, have accelerated programs, but they *are* accredited by the same organizations as CUNY, SUNY, NYU, Columbia, and other traditional Universities and Colleges. The advantage of for-profit colleges is that all students can get a chance to learn and that it is not competitive as other colleges. This student really needs to take personal responsibility and not blame the College