ANNAPOLIS – The Maryland General Assembly has sent Gov. Martin O’Malley a bill that would regulate for-profit colleges, forcing them to report enrollment numbers and stop giving bonuses to recruiters, as well as prevent their students from receiving state aid. The crackdown comes amid growing concern about predatory recruitment practices at such schools and widespread questions about the veracity of their graduation rates.
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| • Maryland employers would be allowed to check a job applicant’s credit history only in limited circumstances under a bill Gov. Martin O’Malley indicated Wednesday he would sign. |
| The legislation passed by the General Assembly mandates that an employer must showcase a credit check is somehow pertinent to the job being offered. |
| • O’Malley’s energy team took questions from members of the Senate Finance Committee in an effort to save his offshore wind bill. The governor’s proposal to mandate that state utilities buy wind energy generated by turbines planned for construction 12 miles off the coast of Ocean City has run into concerns from lawmakers that it would cost ratepayers too much money. |
| • A House of Delegates committee voted to advance a scaled-down version of O’Malley’s InvestMaryland venture capital fund. |
The bill, which the governor is expected to sign into law, would regulate the Washington Post Co.’s Kaplan University, plus DeVry University and the University of Phoenix, among others, which are not bound by state standards.
The bill also forces for-profit colleges to pay back students in the event of a breach of contract or school shutdown. And the colleges would be forced to tell students if they institute a new program not recognized by state regulations.
For-profit colleges are facing increased scrutiny nationwide after federal investigators discovered the schools were giving false information to prospective students to boost enrollment and secure more federal grants.
State Sen. Paul G. Pinsky, D-Prince George’s County, the architect of the legislation, said enrollment at for-profit colleges has soared 225 percent in the last two decades. His bill overwhelmingly passed both chambers.
Under the soon-to-be law, such colleges must receive approval by the Maryland Higher Education Commission to operate in the state.
Industry leaders say the bill unfairly penalizes those who choose to attend their colleges but need financial help.
Maryland reported paying $62,550 in scholarships during fiscal 2010 to 38 students who attended the schools. Nationwide, students at for-profit institutions received more than $4 billion in Pell Grants and more than $20 billion in federal loans in 2009.
A U.S. Senate panel also found in a study that 14 of 16 for-profit schools received at least 87 percent of their revenue from federal student aid in 2009.
But one-quarter of those students defaulted on their loans, the Senate panel found. And more than half of all students withdrew before graduation.
