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    The secretary of Wisconsin’s Department of Safety and Professional Services sought to reassure the state’s for-profit college oversight board Tuesday that a proposal to shift responsibility for regulating those schools to her agency would not weaken supervision of the industry. But members of the Educational Approval Board were skeptical of whether the state department would have the expertise to scrutinize for-profit schools and protect their students, and voted to oppose the plan in Gov. Scott Walker’s budget. “If it’s not broken, don’t fix it,” board chairman Don Madelung said. “We’re not broken.” Walker’s proposal would eliminate the agency’s board and shift its staffers’ jobs to DSPS. Speaking to EAB members, DSPS officials pitched the move as a way to complement the agency’s efforts by maintaining its 6½ full-time staff positions and pairing them with the larger department’s legal counsel, investigators, consumer complaint division and other resources. “If the EAB does go away, nothing else would,” Secretary Laura Gutierrez said. “I don’t think the regulations, I don’t think your best practices (or) the way you do business would go away. “We would be protecting the students, and that would be our focus.” Consumer advocates and government regulators have been critical of the for-profit college industry, saying some of its schools use misleading marketing and offer expensive programs that are of questionable value to graduates on the job market. After facing increased scrutiny during the Obama administration, experts anticipate for-profit schools will experience less federal oversight under President Donald Trump, which could make the role of state regulators more significant. Walker advanced a similar plan two years ago to shutter the EAB, which legislators later removed from the budget — something Madelung praised Tuesday as “common sense.” Unlike the proposal Walker announced this year, that plan would have consolidated the work of the EAB’s staff and board into a single part-time employee. Sti
    7 years ago by @prophe
     
      Mar2017USAEnglishWisconsinfor-profit
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      The Trump administration has taken its first shot at rules designed to protect students from expensive, low-quality colleges and career training programs. Less than a month after Betsy DeVos was sworn in as its top official, the U.S. Department of Education announced Monday evening that it would delay until July 1 an effort to crack down on career training programs that load students up with unpayable debt. The biggest winners: the more than 800 higher educational programs that claim to lead to “gainful employment” but flunked the department’s January excessive debt test—mostly for-profit art and cosmetology schools. These programs can now continue to recruit applicants (at least until July 1) without having to warn them about alumni’s oppressively high debt loads. The schools can also take this extra time to seek data showing that their graduates’ student loan bills are actually below the official “excessive debt” cutoff. That means bills must be no more than 12% of the average student’s gross earnings, as reported to the Social Security Administration, and no more than 30% of their discretionary income. That means, for example, that students considering entering, say, the Art Institute of Pittsburgh’s two-year Associate’s program in graphic design won’t necessarily be warned that the typical graduate of the program has taken on about $40,000 in debt, but finds a job paying only about $22,000 a year. The monthly financial reality for such graduates is grim. Their before-tax monthly salary works out to about $1,900. The monthly payments on a standard 10-year student loan repayment plan top $400 – or more than 20% of their gross earnings. The department said it would use the extra time to “further review the [Gainful Employment] regulations and their implementation.” The action puts the brakes on one of many last-minute moves by the Obama administration. In January, the Department of Education issued an analysis of the earnings and student debt levels of more than 8,600 higher education programs that offer pr
      7 years ago by @prophe
       
        Department_of_EducationUSAgainful_employmentfor-profitdelayedDonald_TrumpObamaMar2017
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        The plan offers free tuition to hundreds of thousands of middle- and low-income students. College presidents and student leaders Tuesday praised Gov. Andrew Cuomo’s proposal to make public colleges and universities tuition free for students from families with income of $125,000 or less. Republican state senators, however, raised concerns about how the program would be paid for and what would be asked of students. One local senator slammed the plan as a pander to the “progressive far left.” Cuomo, who rolled out the proposed Excelsior Scholarship as the first on his State of the State road show, cited the challenges students face in affording college and the high burden that comes with the average debt load of $30,000 for students leaving State University of New York schools. “The debt is so high it’s like starting with an anchor tied to your leg,” Cuomo said in announcing the plan alongside Sen. Bernie Sanders of Vermont in New York City. Sanders said the “revolutionary” plan, if approved by state lawmakers in New York, could “reverberate around the country” and send a message to young kids that college is achievable no matter their family’s income. College presidents and student leaders at schools in and around the Capital Region said they were excited about the announcement — even if they awaited more details. SUNY officials, Chairman H. Carl McCall and Chancellor Nancy Zimpher, in a joint statement said the proposal “takes college affordability to a dramatic new level.” Even U.S. Education Secretary John King, former New York education commissioner, got in on the praise with a statement applauding Cuomo for “expanding the doors of opportunity” to more New Yorkers. Schenectady County Community College President Steady Moono said he knows of students that weren’t able to re-enroll for spring classes this year because even a few hundred dollars were too difficult to absorb in tight personal budgets. Some students work full-time jobs to help pay tuition at SCCC. “I think this becomes a critical game-chan
        7 years ago by @prophe
         
          Jan2017Free_tuitionNew_YorkUSAEnglish
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          The Trump administration just handed an olive branch to the battered industry. he Trump administration appears poised to undo one of its predecessor’s most ambitious attempts to rein in for-profit college rapacity. The Department of Education is delaying the so-called “gainful employment” rule, in place since 2015, the Wall Street Journal’s Josh Mitchell reports. Under the Obama-era rule, the Department of Education would shut off the financial-aid spigot for higher education institutions if their typical graduate reported spending more than 30 percent of after-tax cash or 12 percent of total income on student loan payments. In other words, if a college saddles too many of its students with debt and shabby job prospects — if graduating classes debt-to-income ratios don’t look good for a few consecutive years — it will be barred from receiving Stafford loans, Pell grants, and other forms of taxpayer funding for higher education. The more than 800 schools that the Department of Education threatened in January with sanctions under the rule—98 percent of which are for-profit institutions like Full Sail University and University of Phoenix — will now have until July 1st to hire independent auditors to investigate whether the government’s damning data on their students career outcomes is wrong or flawed. Since most for-profit colleges derive most of their revenue from students’ federal financial aid packages, thousands of the schools may have eventually had to close their doors without reconsideration by the Department. The extended timeline to appeal, and the department’s promise to review the rule, could be a lifeline for an industry that was facing an unprecedented crackdown via states attorneys general lawsuits and federal enforcement actions. But, as Pacific Standard reported in 2015, this wouldn’t be the first time the industry has bounced back from a regulatory beating. For-profit college parent companies stocks have surged since Donald Trump’s election in November. Now, shareholder faith looks like it could g
          7 years ago by @prophe
           
            for-profitUSADonald_TrumpDepartment_of_EducationMar2017gainful_employmentObama
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            President Trump’s postelection agreement to pay $25 million appeared to settle the fraud claims arising from his defunct for-profit education venture, Trump University. But a former student is now asking to opt out of the settlement, a move that, if permitted, could put the deal in jeopardy. Lawyers for the student, Sherri Simpson of Fort Lauderdale, Fla., on Monday asked a federal judge in San Diego to reject the settlement unless former students are given an opportunity to be excluded from the deal so they can sue Mr. Trump individually. If the judge, Gonzalo Curiel, decides that Ms. Simpson and potentially others should have that chance, legal experts say it could disrupt the settlement because Mr. Trump and his lawyers saw the deal as a way to resolve all of the claims, once and for all, to avoid a trial and distractions to his presidency. “If even one person could opt out of the settlement and force a trial, that might, in fact, crater the deal,” said Shaun Martin, a professor at the University of San Diego School of Law. “I’m sure Judge Curiel will be aware of that.” The agreement, announced in November, appeared to resolve years of hotly contested litigation, including two federal class-action cases in San Diego and a separate suit by Eric T. Schneiderman, the New York attorney general. Students maintained that they were cheated out of tuition through high-pressure sales tactics and misleading claims about what they would learn. At one point during the contentious case, Mr. Trump questioned Judge Curiel’s impartiality based on his Mexican heritage. Mr. Trump, who has rejected the claims and did not acknowledge fault in the settlement, posted on Twitter after the settlement announcement that he “did not have the time to go through a long but winning trial on Trump U.” Patrick Coughlin, a lawyer representing the class-action plaintiffs, said that it was a “terrific settlement” and that the objection seemed “politically motivated.” He said he feared that the objection could result in delays for students
            7 years ago by @prophe
             
              Donald_TrumpMar2017closuresuefor-profitUSAEnglish
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              Several of the region's private colleges say Gov. Andrew Cuomo's proposal for free state college would have a negative effect on their schools. WBFO's Senior Reporter Eileen Buckley says members of the Medaille College community are being encouraged to write to state lawmakers to consider an increase for the Tuition Assistance Program instead of supporting the tuition-free plan for SUNY. “The lobbying efforts that we have are in full force. We are doing it individually from our desks at our various campuses,” said Dr. Kenneth Macur, president at Medaille College. Macur said he remains skeptical about how much Cuomo's plan would cost the state and taxpayers. The Governor wants students in families earning $125,000 or less to receive tuition free scholarships to all state colleges and universities. Macur is more concerned about how it might effect a student's "right to choose" a college. “More than being worried about what happens to Medaille, I’m worried about students who are forced into huge lecture halls. Forced into schools where the graduation rates aren’t as good, where the care and concern doesn’t exist as it does at Medaille and what’s going to happen to those kids,” Macur remarked. Medaille’s tuition is a little more than $27,000. About 922 of the college's students did received $2.5 million in TAP toward their tuition. “Sticker price goes up on an annual basis two, three percent, but the actual net tuition, on average, has been going down over the last three to four years,” Macur explained. “And so even though we’ve done a great job making college affordable for students in the region, we’d be penalized by the governor’s plan.” When the governor appeared last month at rally Buffalo State College to seek support his idea, he made a remark about the cost of private education. “Average student debt $29,000, $29,000 – you just can’t do it,” said Cuomo. “One of the problems with using the debt statistics in that way, you miss that the fact that private college graduates have lower default rate
              7 years ago by @prophe
               
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                The first class of students who went to community college for free under Tennessee Promise is graduating this spring. Some might go straight into the workforce, some plan to transfer to public universities — but private colleges are starting to make a concerted effort to recruit them, too. One of these efforts comes in the form of a scholarship, a potentially hefty one: Tennessee Promise students transferring to Lipscomb University will receive at least $10,000, making up more than a third of their tuition. The university announced the "Lipscomb Promise" scholarship last week. “A substantial amount of their education will be funded by this university," said university president Randy Lowry. "That, in partnership with state resources ... [and] with their own resources and work, should provide them with the opportunity for this kind of college experience.” This award is not actually new — Lipscomb already offered the $10,000-plus scholarship to transfer students, under a different name, in past years. Lebron Hill, a junior, says the "Lipscomb Pathways" award was an integral part of his deciding to transfer from Motlow State Community College last year. "The money was a main factor in my choice, so I'm glad I was able to get the scholarship," he says. So "Lipscomb Promise" is essentially a rebranding. But changing the wording is not insignificant — after all, the entire Tennessee Promise program showed that marketing makes a difference. The governor has acknowledged that a huge part of its success is the fact that it proactively labels community college as "free," even though it was already free for many students because they qualified for federal financial aid. Mike Krause, who oversees the Tennessee Promise program and the state's higher education commission, says he expects calling the scholarship "Lipscomb Promise" will make a difference. “I think this is a place where the brand matters. You’re able to tell a student who’s really gotten used to the Tennessee Promise message [that college is affordable for
                7 years ago by @prophe
                 
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                  Buoyed by the ascendancy of Donald Trump, America’s predatory for-profit colleges are renewing their multi-front fight to destroy a key measure to hold them accountable: the gainful employment rule. The new battle plan includes pushes in Congress and before the Betsy DeVos Department of Education, plus two new lawsuits aimed at the regulation, including one, in Arizona, that has not been previously reported. It looks like this harmful effort is rapidly gaining traction. It took the Obama administration nearly eight years of battling well-paid for-profit college lobbyists and lawyers to finally enact and implement this regulation, which has a simple, common sense premise: Career training programs that, year-after-year, leave graduates mired in overwhelming debt should lose eligibility for taxpayer-funded student grants and loans. Career education should make people financially better off, not worse off, and the rule aims to channel money away from programs that do harm — and channel it toward those honest, effective colleges that are genuinely helping students build careers. For decades, many for-profit colleges, through a toxic mix of high prices, low quality, and weak job placement, have promised more than they could deliver, and yet have been getting billions annually in federal aid, much of it spent on advertising and profits, rather than education. Many veterans, single moms, displaced factory workers and miners, and others struggling to build a better future have been deceived and abused by unscrupulous college owners, whose offices are in Wall Street suites as well as strip malls. The final gainful employment rule does not demand much; only the worst programs flunk its test comparing graduate earnings with debt levels. The first round of results, reported in January, showed that 98 percent of the flunking programs were at for-profit colleges. The for-profit colleges have never stopped trying to overturn the rule, even after federal courts decisively rejected two separate industry lawsuits. Now, however,
                  7 years ago by @prophe
                   
                    Mar2017for-profitDonald_TrumpObamaUSAEnglish
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                    Alums of a disgraced for-profit college chain have spent years trying to cancel their federal student loans. For three years in federal court, the Obama Department of Education told them to keep on paying. Improbably, the Trump administration is poised to say differently. Under a preliminary accord, the federal government would invite tens of thousands of former students, who more than 20 years ago attended beauty and secretarial schools owned by defunct Wilfred American Education Corp., to petition the Education Department to cancel their unpaid debt and receive refunds on past payments, according to four people familiar with the case, who spoke on condition of anonymity because they were discussing confidential settlement negotiations. The applications are almost certain to be approved, these people said, and the government would foot the bill. The deal-which is not complete and may change-would resolve a 2014 class-action lawsuit against the Education Department brought by seven former Wilfred students who claimed the feds for decades had been wrongfully collecting on debt that students needn't repay. Federal law allows borrowers to cancel their loans when their schools violate certain rules, and Wilfred routinely flouted the law by falsely certifying that its students were eligible for government loans, according to the complaint. The lawsuit claimed the department knew the loans were eligible to be forgiven, yet it made no effort to inform debtors of this right. If finalized, the settlement would represent one of the largest debt-forgiveness schemes undertaken by the Education Department. That it didn't happen under Obama, who championed student debt relief measures, and instead could happen under Trump, who in November agreed to pay $25 million to settle several lawsuits tied to his own foray into for-profit education, could upend expectations that a Trump-overseen Education Department would favor the interests of for-profit schools over those of allegedly defrauded students. Jim Margolin, a spokesman f
                    7 years ago by @prophe
                     
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                      I’m working with a client to help fill a management level position, and last week we interviewed an applicant with three degrees from a for-profit university. As college degrees become more important for both hiring and advancement, these for-profit educational institutions are growing in number and presence. For-profit schools are just that — businesses. They are corporations, often with shareholders, that have the objective of making a profit. Education is their product. If you’re thinking about going back to school, here are some things to consider before you commit your time or your money to these businesses. Consider your objective. If you want a technical skill, the for-profit route may be for you. Most of these schools do not have entrance requirements. Money and a high school diploma or its equivalent will get you a seat in the program. If you want a college education, consider that the for-profit degrees come with limits. Credits for your work may not transfer to other programs. A bachelor of science degree may not qualify you to move into a graduate program with another school. Most employers will give preference to a candidate with a degree from a traditional university. And if you’re thinking about an advanced degree that will allow you to teach at the university level, don’t even consider the for-profit route. If your objective is flexibility, remember that many traditional universities are now offering online classes and flexible scheduling. Pay attention to accreditation. Accreditation for the university AND for specific programs is a big deal. Learn what accreditation means. Know what the standard of excellence is. Lack of appropriate accreditation may mean your degree is worth very little. Pay attention to cost. Congress is now involved in investigating the costs of for-profit schools. Many state schools are now offering online, evening and weekend programs for much less money. For example, the Georgia WebMBA program is a fully online 18-month master’s program offered through a consortium of
                      7 years ago by @prophe
                       
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                        President Donald Trump’s administration has begun relaxing restrictions on for-profit colleges, and traders in shares of companies like Strayer Education Inc. (STRA) and Capella Education Co. (CPLA) have taken note. For-profit college stocks soared in the week after the Department of Education announced a delay in the implementation of a regulation finalized in October 2014 by former President Barack Obama. Shares of Strayer Education, a holding company for Strayer University, climbed 2.5 percent in the week following the March 6 announcement, hitting a high of $81.40 shortly after Monday market open, while Capella Education, the parent of Capella University, grew 1.8 percent over the same period, surpassing $78 Monday morning. Grand Canyon Education Inc. (LOPE), the parent of Grand Canyon University, rose 3.5 percent over the past week to an all-time high of $67.49, and Laureate Education Inc. (LAUR), which counts Walden University as one of its for-profit institutions and was formerly known as Sylvan Learning Systems, saw its shares rise 0.6 percent to nearly $13 Monday. DeVry Education Group Inc. (DV), known for its DeVry University, saw a more modest 0.4 percent rise over the past week. The Department of Education initially required for-profit colleges, along with some nonprofit and public schools, to report data on the success of their job training programs by April 3, but under new Education Secretary Betsy DeVos, the date was pushed to July 1. The rule, which was originally slated for implementation on July 1, 2015, would cut back on federal funding for institutions whose programs did not lead to "gainful employment"— meaning graduates’ annual loan payments exceeded 20 percent of their income. For-profit colleges, whose attendees tend to be disproportionately female, minority and low-income, have long faced criticism for their role in the student debt crisis. Data released from the Department of Education in September linked more than 35 percent of student debt defaults in 2013 to the institutions, des
                        7 years ago by @prophe
                         
                          Donald_TrumpObamafor-profitdelayedMar2017USAEnglish
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                          Comeback of for-profit medical schools brings questions of reputation, quality of education After nearly a century of dormancy, for-profit medical schools are making a return in the United States. A recent paper by University researchers analyzed the history, reappearance and possible effects that these schools could have on medical education. Though at one time for-profit medical schools existed in the United States, this changed with the publishing of Abraham Flexner’s 1910 report on the state of these schools, according to the paper. There were numerous critiques of these schools in Flexner’s report, particularly of the standards, requirements, teaching and students’ clinical and research exposure. The report led to a renovation of medical teaching and the subsequent disappearance of for-profit institutions. The medical education system accepted nearly all students who could afford to pay tuition prior to 1910, Gruppuso said. “There was no standardized set of requirements for medical schools, and it was creating a real crisis in terms of quality for medical care.” In 1996, the court case United States v. American Bar Association made it possible for for-profit law schools to be established, according to the paper. Though the Liaison Committee on Medical Education had previously been opposed to for-profit medical schools, they slowly began to change their opinions after the court case and eventually allowed for for-profit medical schools to be established in 2013. According to the paper, a number of investor-owned schools, such as the Rocky Vista University College of Osteopathic Medicine, have been accredited, and more have received preliminary and provisional accreditation. Philip Gruppuso, professor of pediatrics and an author of the paper, said the main point of the article was to bring both the existence and establishment of these for-profit schools to public attention. “(This article) sheds light on the fact that not all medical schools in the United States are nonprofit institutions, so I’m not
                          7 years ago by @prophe
                           
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                            Senate Democrats want Education Secretary Betsy DeVos to explain why she’s delaying the implementation of an Obama-era rule aimed at ensuring career-training programs, specifically those at for-profit colleges, actually prepare students for good-paying jobs. In a letter to DeVos this week, Sens. Dick Durbin (Ill.), Patty Murray (Wash.) and Elizabeth Warren (Mass.) called the department’s gainful employment rule a critical protection for both students and taxpayers. On Jan. 9, the department released final debt-to-earning rates for career training programs required by the rule finalized under Obama in October 2014. Under the rule, the estimated annual loan payment of a typical graduate would have to be at or below 20 percent of his or her discretionary income or 8 percent of his or her total earnings to be considered a program that leads to gainful employment. Programs that exceed these levels would be at risk of losing their ability to participate in taxpayer-funded federal student aid programs. Late last week the department gave schools more time to appeal their ratings, which are generated using earnings data from the Social Security Administration and debt information from the department’s records and the school. Final appeals, originally due March 10, are now due July 1. But Democrats argue the rule was generous to begin with, giving schools three opportunities to appeal their rates. “According to a Department spokesperson, the delay was also due to ‘a question about whether schools can provide data to a third party,’” the senators wrote. “It is unclear how this question could not have been solved through follow-up guidance rather than a delay.” DeVos is also giving Gainful Employment Programs until July 1 to switch to a new format in meeting the requirement to disclose information about their programs, including graduation rates, tuition and fee amounts, typical student debt upon graduation and what a graduate is likely to earn. The senators asked DeVos how long
                            7 years ago by @prophe
                             
                              Mar2017EnglishUSADepartment_of_EducationDonald_TrumpObamadelayedgainful_employmentfor-profit
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                              Students who were scammed by a for-profit college back in the '80s could get their money back under the Trump administration. The Wilfred American Education Corp. used to run beauty and secretarial schools that primarily attracted low-income students, usually women. In 1988, Wilfred had 58 schools and more than 11,000 students, making it one of the largest for-profit college chains in the country. Many of those students used federal loans to pay for their education. But in 1991, Wilfred was found guilty of fraud in two different federal court cases. By law, the Department of Education should have canceled the student loans after the school was shut down. That didn't happen. Seven former Wilfred students sued President Obama's Education Department, demanding their student debt be canceled and the loan payments they made over the years be reimbursed. They were among 60,000 people who took out government-backed loans to go to Wilfred. That lawsuit was originally dismissed on a technicality. The decision was overturned when a judge said the Education Department was required to tell students if they're eligible to cancel a loan. Now, four people familiar with the case told Bloomberg the federal government is considering a deal. It would allow students to petition to cancel their debt and get refunds on past payments. The outlet notes a lawyer for the students said in a March 9 filing that they "have made substantial progress toward a final settlement," but no official agreement has been submitted to the court yet.
                              7 years ago by @prophe
                               
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                                The Trump administration’s plan to cut billions of dollars in research spending by eliminating indirect cost reimbursements would devastate university science, especially at public institutions, experts warned. [This is an article from The Chronicle of Higher Education, America’s leading higher education publication. It is presented here under an agreement with University World News.] The US secretary for health and human services, Tom Price, told Congress this week that the idea is to save taxpayers money while giving them the same amount of research activity. Indirect cost payments are funds spent on "something other than the research that’s being done," Dr Price told a House of Representatives subcommittee on health appropriations on Wednesday. But university representatives made clear on Thursday that it simply does not work that way. Indirect costs reflect the legitimate expenses of providing scientists with labs and complying with a host of essential services that somehow will still need to be paid, the representatives said. Under current law, a researcher who receives a federal grant to conduct research cannot simply be billed by his or her university for those costs, said Tobin L Smith, vice president for policy at the Association of American Universities, which represents major research institutions. And universities absolutely won't force students to cover the difference, Smith said. "The reality is we don't have other revenue sources to pay for those things, because let's face it, we are not going to rob tuition to pay for those costs," he said. "It just is not going to happen." It's not clear what universities would do if Congress actually accepted the administration's proposal to end indirect cost payments, said David Kennedy, director of costing policy and studies at the Council on Governmental Relations, another association of research universities and affiliated medical centres. State institutions probably would suffer first and hardest, Kennedy said, because they would have virtually no ab
                                7 years ago by @prophe
                                 
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                                  Arizona Summit Law school, a troubled for-profit institution owned by the InfiLaw System, has been placed on probation by its accrediting body, the American Bar Association. The association’s move was announced on Monday and followed Arizona Summit’s affiliation with Bethune-Cookman University, a nonprofit historically black college in Daytona Beach, Fla. Arizona Summit Law in Phoenix is the second school owned by InfiLaw to be placed on probation for failing to meet A.B.A. accreditation standards. Sterling Partners, a private equity firm in Chicago and Baltimore, is an investor. The first, Charlotte School of Law in Charlotte, N.C., lost its eligibility for federal student aid in January as a result of the probation. Its enrollment has declined sharply, and the school has said it is trying to restart federal aid and is exploring affiliation with a nonprofit college in a Northeastern state. At Arizona Summit, the bar association found that admissions practices, academic programs, and graduation and bar exam passage rates were below par. These deficiencies, according to a statement by the A.B.A. Section of Legal Education and Admissions to the Bar, “have resulted in the law school now being in a position where only immediate and substantial action can bring about a sufficient change to put the law school on a realistic path to being in compliance within the time allowed” by the bar association’s rules. Only 24.6 percent of Arizona Summit graduates who took the Arizona state bar exam for the first time in July 2016 passed, an exceptionally low rate. Charlotte School of Law reported nearly the same passage rate for its graduates who took the North Carolina bar exam last month. The bar association said that because the situation at Arizona Summit was critical and urgent, it could have hearings this year to consider any additional remedial action or sanctions “up to and including withdrawal of the law school’s approval.” The probation decision was made by the bar association’s Council of the Section of Legal E
                                  7 years ago by @prophe
                                   
                                    Mar2017for-profitbanaccreditationUSALaw
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                                    Remember when candidate Trump promised to make college affordable for everyone? Yeah, that’s not happening.  Instead, Trump is turning to the notorious corporateers who have been pouring McDiplomas on the nation’s steaming trillion-dollar student debt pyre to shake up higher education. Education Secretary Betsy DeVos’s controversial pick for a special assistant—for-profit college corporate lawyer Robert Eitel, may be a portent. As counsel for Bridgepoint, the parent company of the now-tainted brands of Ashford University and University of the Rockies, was forced by the Obama administration last year to refund $24 million in tuition and debt costs to students, plus civil damages, after the Consumer Financial Protection Bureau found that its heavy marketing scheme for its online programs, and “deceived its students into taking out loans that cost more than advertised.” Bridgepoint is just one player in a sector of for-profit institutions that are known for exploiting millions in federal loans and grants, providing substandard academics and granting worthless diplomas. While many companies were reined in by regulators under Obama, the industry as a whole has survived, and is now poised for revival under Trump. In fact, even those companies penalized for defrauding students have not been held fully accountable over federal student debts; Bridgepoint’s sanction, for example, did not encompass federal loans, even though graduates are typically chained to about $33,000 in taxpayer-subsidized debt. But the for-profit college companies hobbled by financial crisis under Obama might see a major resurrection under Trump’s and DeVos’s deregulatory agenda. One tactic may be for belly-up for-profits to reinvent themselves as nonprofits, in order to skirt future regulations and wriggle out of liability for financial abuses. The Corinthian college chain, for example, following bankruptcy, was placed under the control of a nominal “nonprofit” called Zenith (which was later exposed for having compromising financial entangle
                                    7 years ago by @prophe
                                     
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                                      Ratings agency dings small university for spending big after a new president took over. As focus shifts to a budget deficit, question becomes whether Drew can cut spending while growing enrollment. MaryAnn Baenninger inherited a budget deficit when she came to Drew University in the summer of 2014. The next year, the small private university’s deficit grew. And that was by choice. Drew spent more as Baenninger sought to put money into the university’s campus, students and employees. The university issued its first raises in about five years. It hired a respected enrollment guru and increased its financial aid spending. It renovated the dining hall. The spending was a change for Drew, a pricey university to the west of New York City in Madison, N.J., which had been preparing for budget cuts following several years of dropping enrollment before Baenninger arrived. But, according to Baenninger and members of her administration, the spending helped to keep talented staff and faculty members from leaving, improve student retention and increase applications from prospective students. “We were losing kids on the food, for God’s sake,” Baenninger said. “Our salaries were going downhill. Now they’re going up.” Recently, however, the spotlight has shifted to Drew’s deteriorating financial situation. Moody’s Investors Service drove home that point this month by downgrading Drew’s bonds for the second time in 15 months. Moody’s dropped one series of bonds from Ba3 to B2 and two others from Ba3 to B3, sinking them farther into junk territory and signifying that they are highly speculative. Moody’s pointed to operating deficits that are expected to last longer than previously projected, along with a competitive student market constraining possibilities for short-term revenue growth. It said Drew has no more unrestricted liquidity left and would have to rely on loans and distributions from temporarily restricted endowment assets for working capital. Moody’s also assigned a negative rating outlook. “The negative outlook reflect
                                      7 years ago by @prophe
                                       
                                        Mar2017USAEnglishdeficitbudget_cutNY
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                                        The financial pressure on university students has been growing across the U.S. for several decades. At the national level, inflation-adjusted tuition and fees at a public four-year university rose 270 percent from 1977 to 2017, while the federal minimum wage fell by 24 percent. While standards of living generally rose over those 40 years, the financial pressure on university students sharply accelerated. Earlier generations were more fortunate. Summer work plus part-time work no longer enable graduation debt-free. From 2001 to 2017, tuition and fees for undergraduates at the University of Montana are up 103 percent with the CPI rising 39 percent. In 2001, a student working 40 hours for 12 weeks at the Montana minimum wage could cover 81 percent of annual tuition and fees. By 2017, even with a rise of 58 percent in the minimum wage, such summer work covered less than 63 percent. The price of textbooks is up 150 percent in the same period. Data from 2014 show 67 percent of Montana graduates with debt averaging $26,946. Whereas students may be paying their share, the state is not. Students pay more and get less. Unrestricted revenue (tuition, fees, state allocations) per full-time-equivalent student in the Montana university system in 2015 was $10,783 – second-lowest nationally. The national average was $2,100 higher, with neighboring states Idaho, North Dakota and Wyoming higher by $1,069, $3,671 and $9,550, respectively. The percentage of the total covered by student tuition in Montana was significantly higher than in neighboring states. Moreover, legislatures in 13 states with lower median household incomes (including Alabama, Arkansas, Florida, Georgia, Idaho, Indiana, Maine, New Mexico, Oklahoma and North Carolina) allocated substantially more state funds per FTE than Montana’s legislature. Montana is winning the race to the bottom. University funding in Montana lags a national field that is itself lagging. If other state university systems were healthy it would be less of a problem. Unfortunately, public hi
                                        7 years ago by @prophe
                                         
                                          Mar2017USAEnglishthreat
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                                          Chestertown, Md. — The moment Isaiah Reese set foot on the idyllic campus of Washington College, a private liberal arts school on Maryland’s eastern shore, he knew he didn’t want to go there. At the time, he was a high school senior on a school tour. “I told myself I was not going to this school, no matter what,” Reese, who is now a freshman at the college, said over a slice of pizza and a spinach wrap burrito in Washington College’s polished cafeteria overlooking one of the school’s greens. Though Chestertown, Md., where the college is located, is just 75 miles from Reese’s native Baltimore, the quaint, roughly 5,000 person boating town struck Reese as almost a different universe from the mostly African-American high school he was attending at the time. “They gave us a tour of the school and I’m still saying nope, nope, this town is old, it’s boring,” he said. But then Reese had a conversation with a Washington College staffer that started to make him change his mind. “As soon as he said ‘full ride’ I was like, ‘Uh-huh, okay,’” Reese recalled at his cafeteria table in a hat emblazoned with Washington College’s logo. The 19-year-old is now one of 14 students in the inaugural year of George’s Brigade, a prestigious scholarship program and the brainchild of Sheila Bair, president of Washington College and the former chair of the Federal Deposit Insurance Corporation. The program, which is named for George Washington — also the college’s namesake — offers promising students from low-income backgrounds a full-ride to the school, including room and board, and caps their student loan borrowing for any other incidentals at $2,500 year. Just tuition at the school for the 2016-2017 academic year was more than $42,000 a year. But George’s Brigade is about more than meeting students’ financial needs. It’s also about ensuring they enjoy and make it through school, according to Bair. She first came up with the idea shortly after arriving at the college and researching some of the challenges low-income and first generat
                                          7 years ago by @prophe
                                           
                                            MarylandUSAEnglishMar2017Free_tuitionlow-income
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