NYC Requests Student Debt Data from DeVry, Career Education Corp.

NYC Requests Student Debt Data from DeVry, Career Education Corp.

April 10, 2013

New York City Comptroller John C. Liu and the city's pension funds this week called on DeVry University and Career Education Corp. to disclose data on student borrowing within an annual report to their shareholders, according to the Chronicle of Higher Education. The shareholder proposals requested information on students' loan repayment rates and debt-to-income ratios, similar to the reporting measures that would have been required under the now-stalled "gainful employment" regulations.

"We believe annual disclosure of the requested metrics would allow shareholders to evaluate program performance in preparing students for gainful employment and assess the company™s exposure to legal and regulatory risk," says a supporting statement provided alongside the shareholders' resolution.

As the city's comptroller, Liu is an adviser to the pension funds, which invest in both for-profit institutions. Career Education sought to bar a vote on the proposal, according to Liu's office, but the U.S. Securities and Exchange Commission ruled against the company.

 

Related Links:

The Chronicle of Higher Education

http://chronicle.com/blogs/ticker/nyc-official-calls-on-for-profit-colleges-to-disclose-student-debt-data/58085?cid=at&utm_source=at&utm_medium=en

Michelle Cormier Mott

State Relations