With Romney Under Fire for Touting For-Profit Colleges, SEIU Launches Website for Beleaguered Students in Sector

WASHINGTON, Jan. 19, 2012 /PRNewswire-USNewswire/ -- With presidential candidate Mitt Romney coming under fire for touting for-profit colleges as a solution to high tuition costs and student debt, the Service Employees International Union (SEIU) today is launching a website for beleaguered students in the sector.

Romney's claims about the cost-effectiveness of the for-profit college industry, which has made significant donations to his campaign, are clearly at odds with reality, according to information on the website, www.ForProfitU.org. Tuition, debt loads, and loan default rates run far higher at for-profits than at traditional schools and the sector is disproportionately contributing to the nation's student debt crisis. Despite the fact that approximately one in ten college students attend for-profits, nearly half of all federal student loan defaults occur there.

As The New York Times reported earlier this week, Romney received $2,500 from Todd S. Nelson, CEO of Education Management Corporation (EDMC). With some of the highest tuition rates in the industry, the 105 schools operated by EDMC—including The Art Institutes, Argosy University, Brown Mackie College, and South University—are highlighted on the site.

For-profits are facing increased scrutiny. Under the leadership of U.S. Senator Tom Harkin (D-IA), Congress has launched a broad investigation of the sector. The Department of Justice and attorneys general in five states and the District of Columbia are suing EDMC under the False Claims Act for its marketing and recruiting practices and earlier this month The Pittsburgh Post-Gazette named Nelson "one of the most influential people in business 2011," describing him as "a central figure in a congressional investigation of education companies that receive up to 90 percent of their profits from taxpayer dollars." Schools owned by EDMC, itself owned by Wall Street giants Goldman Sachs, Providence Equity Partners, and Leeds Equity Partners, have been the target of Occupy Wall Street protests in Miami, Pittsburgh, and Tampa.

Through the website and other educational efforts, SEIU hopes to limit student debt, prevent for-profit schools from targeting minorities and veterans through deceptive recruiting practices, end the waste and abuse of federal education money, and ensure high standards of employment and contracting. 

With 2.1 million members focused on providing quality services and winning good jobs for our communities, SEIU is the fastest-growing union in the Americas.

SOURCE Service Employees International Union