Objective of this story? Put all education under federal control.
Well, let's not go from one extreme to another. Let's dig a little deeper into this case.
After Googling for Westwood College, I found this:
Westwood College Investigated By Federal Gov't
So, it seems that Westwood so-called "College" was a diploma mill that charged up to $75,000 for an "online bachelor's degree" and that Westwood would help applicants commit fraud in order to obatain $75,000 of our tax dollars in Federal student loans.
Obviously, something is rotten in Denver.