WASHINGTON, D.C. (WTNH) — Senator Chris Murphy (D-Conn.), along with Senators Dick Durbin (D-Ill.) and Elizabeth Warren (D-Mass.), introduced the Students Before Profit Act in an effort to regulate for-profit colleges.
The Students Before Profit Act will ensure that for-profit institutions provide clear and accurate information to prospective students, and will be held accountable for misrepresentation. Penalties will, fittingly, fund a Student Relief Fund to help swindled students.
Earlier this year, when Corinthian Colleges were closed after major allegations of fraud, over $40 million in loan debt held by former students were forgiven. According to the press release, it is this kind of extreme profit margin that the Students Before Profit Act will aim to eliminate. Chris Murphy elaborates,
“As we saw with the collapse of Corinthian Colleges, one bad actor can wreak havoc in thousands of students’ lives. No matter what stage of life they’re in, these students are doing the right thing – they’re putting themselves out there to seek an education that furthers their careers and helps them provide for their families. The government owes it to these students to hold the owners and executives of these fraudulent for-profit schools accountable.”
According to this bill, college executives and administrators will have to synchronize their standards and practice with the Department of Education, and will assume liability in cases of fraud.