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In Short

The Washington Post Comes Clean

In the annals of small victories, this may be among the smallest. But that won鈥檛 stop us from bringing it up.

Nearly a month after for failing to disclose its ownership stake in the for-profit higher education company Corinthian Colleges, the newspaper finally did. In on a rally that for-profit colleges held on Capitol Hill yesterday, the Post acknowledged that it 鈥渙wns more than 8 percent of the stock of Corinthian Colleges, which has about 110,000 students.鈥

At Higher Ed Watch, we would like to applaud the Post for coming clean. In recent months, the newspaper has for lobbying on both its and pages against that would penalize for-profit colleges for saddling students with unmanageable levels of debt. Post executives and editors have by saying that the newspaper has been fully up-front about its ties to Kaplan Inc., one of the largest publicly-traded chains of for-profit colleges in the country. Considering that Kaplan accounts for about , we don鈥檛 see how they had any other choice.

But in reality, the newspaper has not been completely transparent. Time and again, it has failed to mention the substantial stake it has in Corinthian Colleges, a giant for-profit higher education company that doesn鈥檛 exactly have a stellar reputation, even among those within the industry. By most accounts, Corinthian appears to be if the administration moves forward with its proposed 鈥淕ainful Employment鈥 regulations because of the substantial amount of debt its students take on and .

According to this summer, only in the last four years had paid down any principal on their federal student loans as of September 2009. In other words, about three quarters of students who left these institutions during this period of time has not paid enough to reduce their total loan debt by even a dollar. Under the administration鈥檚 proposed rule, for profit vocational programs with repayment rates under 35 percent of having their eligibility for federal student aid revoked.

Of all of Corinthian鈥檚 former students, those who attended the company鈥檚 had the most trouble handling their debt. According to the Department, 33 of the company鈥檚 86 Everest locations had repayment rates of less than 20 percent and five had rates below 10 percent. The , for example, had a rate of just 7 percent.

At first, it didn鈥檛 appear that our reporting had done any good. In fact, just last week, the Post鈥檚 higher education blog . published on the that Corinthian Colleges has launched against the Education Department鈥檚 Gainful Employment regulations — without once mentioning the newspaper鈥檚 ties to the company. It was an incredibly stunning lapse for a newspaper that has won praise from its ombudsman, of all people, for “its commitment to disclose self-interest.”

We are happy to see that the Post apparently has had a change of heart. Of course, we think that the newspaper should go much further 鈥 and stop running editorials or commentary on issues related to the for-profit higher education industry. The newspaper has to provide an untainted view of the issues to its readers. But we won鈥檛 hold our breath.

So yes, it鈥檚 a very limited victory, but a victory nonetheless.

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Stephen Burd
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Stephen Burd

Senior Writer & Editor, Higher Education

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The Washington Post Comes Clean