WASHINGTON — An advisory panel to the Education Department has voted to recommend the government sever ties with a group that accredits many of the nation’s for-profit colleges, including schools once owned by the now-defunct Corinthian Colleges Inc. — a critical vote that could lead schools to close their doors and threaten financial aid to hundreds of thousands of students.
The final decision on whether to revoke federal recognition of the Accrediting Council for Independent Colleges and Schools, the nation’s largest accreditor of for-profit schools, will be made by a senior official at the department in the next few months.
After that, if the department goes along with the Thursday’s recommendation, the hundreds of schools now accredited by the council would have to find a new accreditor in 18 months or lose their ability to participate in federal financial aid programs, such as student loans and Pell Grants.
The council has been accused of lax oversight at some of its schools. The council oversees about 250 colleges and schools and more than 600 additional campuses in 47 states, covering some 800,000 students. Its schools received $4.7 billion in federal aid for students last year.
During the meeting, which lasted more than 10 hours, the head of the council acknowledged missteps.
“We sincerely believe that we can solve and address the legitimate issues the department has flagged,” Anthony Bieda said. “We do not say this lightly and we take the department’s concerns very seriously.”
Bieda said the council had made changes, including stepped-up monitoring of its schools, new leadership and a committee to review standards and practices.
That wasn’t enough for the independent advisory panel, which voted 10-3 against continuing recognition of the council.
“This agency failed to act in an appropriate and timely manner,” said panel member Ralph Wolff. He said the council neglected to dive deeply into years of allegations of fraud and misrepresentation for some of its schools.
Last week, a staff recommendation from the department proposed withdrawing recognition for the council, saying “its monitoring regime appears insufficient to deter widespread misconduct regarding placement, recruiting and admissions.”
Advocacy groups, lawmakers and others have long complained about the council. It has been accused of continuing to accredit schools under investigation for falsifying job placement rates and claims for federal aid, illegal recruiting practices and misleading marketing claims.
