Consumer Federation of California

AB 70 (Berman) would stop for-profit Grand Canyon University and Purdue Universal Global from misleading students.

A coalition of fifteen consumer and student advocacy groups is urging the California State Assembly to stop a new trend among for-profit college corporations. AB 70 (Berman) would stop for-profit Grand Canyon University, Purdue University Global, and Ashford University, among others, from claiming non-profit status in California. 

Widespread fraud and massive unpayable student debt leading to bankruptcy has tarnished the image of the predatory for-profit higher education industry.  Federal oversight of for-profit colleges has withered during the reign of Secretary of Education Betsy DeVos.

To cosmetically clean up their image without altering their practices, some non-profits are now presenting themselves to students and regulators as either “non-profit” or “public” universities. In California, AB 70 would help to fill the regulatory gap by establishing clear standards that a higher education provider must meet before claiming to be a non-profit or public institution. The bill faces a vote in the Assembly Higher Education Committee on Tuesday January 8, 2020. (hyperlink) Read the coalition letter in support of AB 70 signed by Consumer Federation of California and fourteen other groups.

Please read the coalition letter in support of AB 70 signed by Consumer Federation of California and fourteen other groups.