U.S. to Join Suit Against For-Profit College Chain

The Justice Department is planning to intervene in a lawsuit charging that one of the nation’s largest for-profit college companies, the Education Management Corporation. This is the first time prosecutors have joined such a case, one of dozens in recent years that accuse the for-profit college industry of illegal practices devised to increase federal student aid revenue. For-profit schools enroll about 12 percent of the nation’s higher-education students yet receive about a quarter of all federal student aid; their students account for almost half of all defaults. In general, these institutions get more than 80 percent of their revenues from federal student aid. I think that this is ineteresting to read about because of the funding or lack there of in most educational instuttions.

http://www.nytimes.com/2011/05/03/education/03edmc.html?ref=education