For-profit industry cited for deceptive practice claims

Senator Tom Harkin said at a Congressional hearing that he plans to pursue legislation to address reported systemic problems in the for-profit education industry.

Senator Tom Harkin said at a Congressional hearing that he plans to pursue legislation to address reported systemic problems in the for-profit education industry.

A report from the Government Accountability Office published this week found cases where for-profit education company officials encouraged student applicants to commit fraud. Before publication of the report, it was mainly anecdotal evidence that fueled criticism of the industry, considered the fastest-growing sector in education.

PRWeek reported on the growing need for reputation management within for-profit education in July, with Qorvis Communications' Stan Collender telling the magazine that, "At a time of increased competition for federal resources, there are problems within the education community about whether for-profit schools deserve them or should get them at their expense."

Following news of the report, shares in for-profit education businesses declined, although companies cited in the report were not named.

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