Cummings launches probe into for-profit schools
Rep. Elijah E. Cummings, the top-ranking Democrat on the House Oversight Committee, said Monday he will launch an investigation into executive compensation at for-profit colleges.
Cummings sent letters to 13 colleges Monday, including DeVry Inc. and Kaplan Inc., requesting they turnover compensation agreements for senior executives “as part of an effort to determine whether [their] salary, bonuses, and other compensation are appropriately tied to the performance of the students [they] educate, the vast majority of which pay for their education with federal tax dollars.”
Many students at the schools pay tuition with taxpayer-funded student loan programs, Cummings said. None of the schools are based in Maryland.
The Baltimore lawmaker has made executive compensation a top issue, including efforts to limit salaries and bonuses for executives at companies that benefited from federal bailouts.
Updated: Brian Moran, interim chief executive officer and president of the Association of Private Sector Colleges and Universities, called Cummings' request "just more politics" and said it "fails to acknowledge the important role private sector colleges and universities have in educating non-traditional students."