Recently, the Education Department took decisive action against a trade school based in Indianapolis. This school, known as Superior Training Services Inc., has been receiving over $1 million a week in federal aid payments for their correspondence courses. At a press conference, officials from the department stated that they were implementing their "strongest administrative action" against the school. Superior Training Services Inc. is reported to be one of the top five recipients of federal student-aid funds in the country.
The school has been accused of misrepresenting the duration of its four truck-driving and heavy-equipment-operations courses in its original applications for eligibility in federal aid programs. Assistant Secretary for Postsecondary Education, Kenneth D. Whitehead, announced that the department is shutting down the correspondence courses provided by Superior Training Services Inc. This action is part of an ongoing campaign to combat fraudulent proprietary schools and protect students who rely on loans to pay for their education. Secretary of Education Lauro F. Cavazos has prioritized this issue.
After an extensive investigation and negotiations with the company, Mr. Whitehead concluded that Superior Training Services Inc. does not meet the criteria for participation in federal aid programs, specifically in relation to their correspondence courses. Consequently, students currently enrolled in these programs are now ineligible for federal Pell grants or guaranteed loans.
The department highlighted that 95 percent of Superior Training Services Inc.’s revenue comes from federal grants and guaranteed student loans. A spokesperson for the company, Ward Degler, expressed surprise at the department’s actions, as they believed negotiations towards a settlement were ongoing. Mr. Degler mentioned that the primary concern was the duration of the courses. The company had already agreed to extend the length of the courses, but it seems this was not sufficient.
Mr. Whitehead revealed that he was able to complete several of the truck-driving correspondence lessons in under an hour, despite the company’s claim that they required up to 12 hours of study each. To contest the Education Department’s actions, the company intends to seek an injunction. Additionally, they are facing a $366-million lawsuit filed by the Justice Department for alleged submission of false documents related to student-aid eligibility. The company is currently in settlement negotiations with the Justice Department.
