Alleging a pattern of financially exploitative tactics, a group of southeastern Wisconsin lawmakers wants the state to tighten its regulation of for-profit colleges.
A group of about 15 people, including lawmakers and local advocates, announced an “Accountability for For-Profit Colleges” bill package during a press conference on Oct. 15. Proposals include a law that would assist students in taking legal action against for-profit schools if they provide fraudulent or misleading information.
“For-profit colleges say they offer students an affordable option for achieving their dreams, but the profit motives of these schools often leave students crushed with debt and poor educational outlooks,” Rep. Angelito Tenorio, D-West Allis, said during the press conference.
Tenorio is proposing the laws along with three other Democratic state representatives: Ben DeSmidt of Kenosha, and Chris Larson and Ryan Clancy of Milwaukee.
The four proposed laws would apply to for-profit colleges broadly.
However, Tenorio and others announced the proposed legislation outside the Arizona College of Nursing’s location in Milwaukee. The college, a for-profit, faced opposition to opening its Milwaukee campus from the Committee for Equity in Nursing Education group that also helped craft the proposed legislation.
The Arizona College has pushed back against the criticism, even sending its representatives to speak before the city’s Common Council during a dispute over zoning last year.
In a statement following the bills’ announcement, the college said it has successfully graduated thousands of people from its Bachelor of Science in Nursing programs.
That degree program, acccording to the college, “is designed to prepare students for successful nursing careers, positively impact communities by addressing nursing shortages, and meet and exceed all regulatory and accrediting requirements.”
The Journal Sentinel contacted Wisconsin Senate Majority Leader Devin LeMahieu, R-Oostburg, and Assembly Speaker Robin Vos, R-Rochester, asking if they or their Republican colleagues would be likely to sponsor legislation on the topic. Neither responded.
Laws would help students sue over false information, increase fees paid by for-profits
For-profit schools are more likely than nonprofits to enroll students whose parents did not attend college, as well as Black and Latino students, according to a 2022 Federal Reserve survey. For-profits are also more likely to put students at a “greater financial risk,” because students are more likely to take out loans, default on those loans, and struggle to find employment with their degrees, according to the National Bureau of Economic Research.
One of the proposed bills would make it easier for students to sue for-profit colleges if they allegedly provide “false, fraudulent, or misleading information,” according to bill text shared with the Journal Sentinel.
Another would prevent for-profit schools from enrolling Wisconsin students if more than 80% of their revenue comes from federal funds.
A third proposal would increase the amount of money collected from for-profits by the state’s Department of Safety and Professional Services, which regulates for-profit schools. Specifically, the state would be allowed to collect more money through “student protection fees” to fund a reserve pool of money for students that is used “in the event of a catastrophic school closure.”
Some Milwaukee for-profit schools have closed unexpectedly, leaving students struggling to finish their degrees. One example is ITT Tech, which left about 500 students stranded when it closed in 2016.
A final bill in the legislative package would require for-profit schools to publicly report their enrollment of veteran students.
Milwaukee advocates have argued for-profit colleges are known to market toward low-income students, veterans, students of color and others.
Among the speakers at the Oct. 15 press conference was Incemirra Pole, a current nursing student at Milwaukee Area Technical College. She described herself as a victim of a for-profit college, speaking about her time at Sanford-Brown and Kaplan College.
“My experiences have fueled my determination to advocate for fair access to education and accountability for predatory institutions that take advantage of working adults and parents like me,” Pole said.
Cleo Krejci covers education and workforce development as a Report For America corps member based at the Milwaukee Journal Sentinel. Contact her at CKrejci@gannett.com or follow her on Twitter @_CleoKrejci. For more information about Report for America, visit jsonline.com/rfa.
This article originally appeared on Milwaukee Journal Sentinel: Milwaukee-area lawmakers propose laws to crack down on for-profit colleges
Reporting by Cleo Krejci, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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