John C. Liu, comptroller of the City of New York, on Thursday called on two of the largest for-profit colleges to disclose data on their students’ loan-repayment rates and debt-to-income ratios, saying that he had submitted a shareholder proposal asking their parent companies to do so. As the comptroller, Mr. Liu is an investment adviser to the city’s pension funds, which include independent programs for city employees, police officers, teachers, and firefighters.
The proposal calls on DeVry Inc. and the Career Education Corporation to provide their shareholders with an annual report that includes loan-repayment rates for graduates and students who did not complete their programs, as well as students’ debt-to-income ratios and the methods used to calculate that information. “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.
Mr. Liu, a Democrat, is running to succeed Michael R. Bloomberg as mayor of the city.