Durbin: Failed Westwood College Should Not Be Allowed to Sell Campuses to Other For-Profit College Systems Under Investigation
[WASHINGTON, D.C.] – U.S. Senator Dick Durbin (D-IL) today called on the Department of Education to prevent failed Westwood College campuses – including four in Illinois – from being sold to other for-profit college systems that are under investigation by local, state or federal agencies. Recently, Illinois Attorney General Lisa Madigan settled a lawsuit with the company for $15 million after finding that Westwood was lying to students about its criminal justice program.
“As I understand it, Westwood will be teaching out and ending operations altogether at many of these campuses, including the four it operates in my home state of Illinois. At the same time, the company may be seeking to sell other campuses, which the Department would ultimately have to approve,” Durbin wrote.
“With respect to the sale of Corinthian campuses, you assured me in writing that ‘the Department will not approve a sale to another entity if that entity is currently under State and/or Federal investigation…’ Today, I ask you to make that same commitment with respect to the potential sale of brands or campuses owned by Alta. The Department of Education should not allow these students to be put in jeopardy again.”
December 14, 2015
The Honorable Ted Mitchell
Under Secretary
U.S. Department of Education
400 Maryland Avenue, SW
Washington, DC 20202
Dear Under Secretary Mitchell:
I write today about the future of Westwood College and ask the Department of Education to take steps to protect students as the school ends operations.
Westwood College, owned by Alta College, Incorporated, has been one of the most notorious bad actors in the for-profit college industry. The Colorado Attorney General found that Westwood misled prospective students through deceptive advertising. Illinois Attorney General Lisa Madigan recently settled a lawsuit with the company for $15 million. Attorney General Madigan found that Westwood was lying to students about their criminal justice program – claiming students would be able to get good jobs, when in reality many employers did not recognize the degree.
On November 12, Alta announced it was suspending enrollment at its Westwood College campuses nationwide. As I understand it, Westwood will be teaching out and ending operations altogether at many of these campuses, including the four it operates in my home state of Illinois. At the same time, the company may be seeking to sell other campuses, which the Department would ultimately have to approve.
In August 2014, with respect to the sale of Corinthian campuses, you assured me in writing that “the Department will not approve a sale to another entity if that entity is currently under State and/or Federal investigation…” Today, I ask you to make that same commitment with respect to the potential sale of brands or campuses owned by Alta. The Department of Education should not allow these students to be put in jeopardy again.
I also ask the Department to require, as a condition of approving any sale of Alta’s Westwood or other campuses, that the new owner refrain from using in its enrollment agreements any mandatory arbitration clauses or other contractual barriers to students making claims against a school in a court of law. This will ensure that students can hold institutions directly accountable for any alleged misconduct, potentially obviating the need for victimized students to seek relief from the Department and the taxpayers.
Thank you for your attention to this issue. I appreciate your prompt reply.
Sincerely,
Richard J. Durbin
United States Senator