For the tenth consecutive year, Illinois Senator and Senate Majority Whip Dick Durbin has released a letter sharply criticizing for-profit institutions operating in Illinois, labeling the schools as "predatory" while citing an increased student loan burden.
Durbin's letter is addressed toward Illinois education professionals, with the senator advocating against the promotion of for-profit institutions to prospective college students at Illinois high schools.
According to Durbin, for-profit students account for 30 percent of all federal student loan defaults, even though only eight percent of postsecondary students attend a for-profit institution.
“For-profit colleges also charge higher tuition than public universities—all the while producing higher debt loads and poorer job outcomes for students. According to the Federal Reserve, students who attend for-profit institutions take on more student debt and are more likely to default on their student loans than those attending similarly selective public schools," Durbin said.
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"As of January 2023, more than 779,785 borrowers had applied for discharge of their federal student loans from the Department of Education (Department) as a result of being defrauded by their schools—the vast majority of applications coming from those who attended for-profits. Unlike for-profit colleges, community colleges offer affordable, quality programs with credits that will almost always transfer to other schools," Durbin continued.
In his letter, Durbin added that more than 2,200 for-profit campuses closed across the U.S. between January 2014 and January 2022, including 67 within Illinois.
Durbin listed the following institutions that operate in Illinois as companies that have either been investigated by state or federal law enforcement, have paid out millions of dollars in deceptive practices lawsuits or have been found guilty in a court of law:
- American Intercontinental University and Colorado Technical University—owned by Perdoceo Education Corporation (formerly Career Education Corporation)
- Ashford University—owned by University of Arizona and operating as University of Arizona Global Campus
- Capella University – owned by Strategic Education, Inc.
- Chamberlain University and Walden University, which are owned by Adtalem Global Education, and DeVry University, which was formerly owned by Adtalem Global Education
- Empire Beauty School
- Grand Canyon University
- Kaplan University – now known as Purdue University Global
- Lincoln Educational Services – operating in Illinois as Lincoln College of Technology
- University of Phoenix
Additionally, another 12 institutions were identified by Durbin as schools placed on "Heightened Cash Monitoring", a step taken by the Department of Education to provide additional oversight to institutions with "financial or federal compliance issues."
- American Academy of Art College
- Cannella School of Hair Design
- DeVry University
- ETI School of Skilled Trades
- Hairmasters Institute of Cosmetology
- John Amico School of Hair Design 2
- Northwestern College
- Shear Learning Academy of Cosmetology
- Taylor Business Institute
- The Salon Professional Academy
- Trenz Beauty Academy
- Zen Shiatsu Chicago
DeVry University, the University of Phoenix and Chamberlain University have all not yet responded to a request for comment from NBC 5.
