Archive for the ‘For-Profit Education’ category

Kaplan Business School Seeks to Raise Standards

March 3rd, 2011

Dr. Thomas Boyd, dean of  Kaplan University’s  School of Business and Management, told the Wall Street Journal in a recent interview that he is focused on raising standards at the for-profit school. This will include improving the quality of faculty by hiring more PhDs to teach online courses,  offering more direct career services for business graduates, and rebranding the school’s image.

Boyd came to Kaplan last April after working as a professor of marketing and associate dean at the Mihaylo College of Business and Economics at  California State University – Fullerton.

Gainful Employment Discussed

January 26th, 2011

U.S. Rep. Virginia Foxx (R., NC)  has said that one of her priorities as the new chairwoman of the House Higher Education Subcommittee  will be to examine the scope and amount of regulation by the U.S. Department of Education, and to focus on spending cuts.

The Chronicle of Higher Education reports that in recent comments at  the Council for Higher Education Accreditation’s annual meeting,  Rep. Foxx  questioned the “gainful employment” rule that the U.S. Department of Education is considering, which would cut federal aid to schools whose graduates, often from lower-income backgrounds, have higher student loan debt to income ratios and low repayment rates.

According to the Chronicle’s report, Rep. Foxx said she supported oversight of colleges who received federal money, but she was uncertain the rule as currently described would be the best option.

Before her election to Congress in 2004, Foxx taught at and served as an administrator at several colleges, including Appalachian State University, Caldwell Community College and Mayland Community College.

Eduardo Ochoa, assistant secretary for postsecondary education at the U.S. Education Department, also spoke at the CHEA meeting. He said that the next draft of the rule, which has yet to be fully revealed, might answer concerns and would be “better” and more “nuanced”.

The rule will be go into effect in its final form in July.

Stemming the Dropout Rate

January 20th, 2011

Grand Canyon University (GCU) has launched a program to  support and retain its online students.

The school has hired 60 full-time  instructors to teach online courses to those most likely to drop out.  (The school has found that students new to online learning or with little college experience are more prone to dropping out).

Online courses are usually taught by one of GCU’s part-time instructors, but the university courses taught by full-time faculty have a lower drop-out rate.

Full-time instructors  have time to be more committed to individual students, and are more experienced with how best to use the online environment.

Grand Canyon, a private Christian university based  in Phoenix,  has about 37,000 online students.  The school offers online undergraduate and graduate  programs in education, business, and health care.

Gainful Employment — Do Grad Students Care?

December 2nd, 2010

In recent months, the for-profit education sector has come under fire from government officials and other critics for the kinds of jobs that its graduates may (or may not) get after graduation. After all, say the critics, why should taxpayers help line the pockets of stockholders when graduates from many of these for-profit schools can’t find work in their field even after graduation?

But is this true? Like everything, it depends.  Depends on the subject, the student, and the economy.

The for-profit sector points out that many graduates of non-profit schools also can’t find jobs in their chosen fields. This is true too. But maybe these graduates simply don’t expect to.

At least, that’s what this article, “Master’s in English: Will Mow Lawns“  from the Chronicle of Higher Education seems to suggest.

Graduate students in business and science, no matter what kind of school they go to, are usually in school to gain skills they can use outside of academia. But PhD students  in subjects like English or Philosophy seek  highly competitive faculty positions at universities — the very heart of academia. And many of these students have paid for school out of private grants or public loans. Where, asks the for-profit sector, is the outrage  about these students?

The answer, according to the Chronicle article, could be that these students simply are not outraged. They knew in advance the job market would be tough and that they may be forced to work in a different field altogether, at least for a while.

But they say their higher degrees are giving them knowledge and skills that will prepare them for a wide variety of work, even if it’s not behind ivy-clad walls.

Sen. Durbin insults student?

September 9th, 2010

A few days ago, according to this post on PoliticsDaily, Sen. Durbin may (or may not) have said something a little derogatory about the Illinois Institute of Art, Schaumburg (IIAS). ILAS is part of the for-profit Art Institutes, and the Senator has been leading the charge for regulations on for-profit schools.

What was perhaps most surprising about this story was that there were protests, by for-profit students, outside the Dirksen Federal Building, where Sen. Durbin was speaking.  It may be common to think that “nontraditional” students, like Mr. Mahan, would not feel compelled to defend their school. It’s not as if these schools have Division I sports teams or a rah-rah spirit. Could it be that since they are older and have more life experience, these students are more aware of the time, effort, and money invested in their education? Simply put, it may be more personal.

University of Phoenix passes Best Places to Work test

July 29th, 2010

Just graduated from the University of Phoenix? Or somewhere with a slightly smaller student body? (Phoenix boasts more than 400,000 alum) If you’re looking for that first job out of school, and you’re in the Cleveland area,  consider some of the Best Places to Work in Cleveland — such as the University of Phoenix, which made the cut in the Cleveland Plain Dealer’s survey of employees. We don’t know if they’re hiring, but… it can’t hurt to apply.

Sen. Durbin speaks out against for-profit schools

July 2nd, 2010
Senator Dick Durbin at the National Press Club

Senator Dick Durbin at the National Press Club

According to this Chicago Tribune article, Sen. Dick Durbin of Illinois is speaking out against for-profit universities like the University of Phoenix, Kaplan University, and Illinois-based DeVry University.

In recent remarks at the National Press Club, the Senator says that these schools burden students with debt, make money essentially from the Federal government’s loans, and don’t help students get good-paying jobs.

He gives the following example:  a woman who received her bachelor’s and masters degrees online — “without ever having to step foot in a classroom” –  is now carrying $110,000 in debt, but can’t repay it because she is working for a nonprofit that helps poor children.

The Senator called the online degrees “worthless” and said tighter regulation of for-profit schools is needed. As the article says, he “did not single out any one bad practice” from the schools, but is instead opposed, it would seem, to their reliance on loans from the Federal government.

The article does not comment on how the woman found her job or what it entails.

Many for-profit  schools do make money based on student loans funded by the government. Of course, many students can also attend private nonprofit schools only because of help from the government. And because public schools are by definition public, they too are funded to a large degree by the government (state and Federal). The question comes down to one of purpose.

Is the purpose of the for-profit schools to make education accessible to people who would normally not receive it, and then to reinvest profits into new technologies and faculty? Or, as the Senator says, are they forgetting their purpose and instead thinking only of profit?

A few other questions that the Senator’s remarks bring to mind: is regulating for-profit schools the answer to the problem of debt? Are for-profit schools the only schools to give out “worthless” degrees? How does one really define “worthiness” in the first place?

Finance Reform Bill’s Effect on Student Loans

June 28th, 2010

The U.S. Senate and the U.S. House of Representatives have come to agreement on terms of a Wall Street regulatory bill which would have major impacts on student lenders.

The Finance Reform Bill (H.R. 4173)  includes more regulation of private lenders, even when those private lenders are the schools themselves (for-profit and non-profit private schools often give loans to students).

The bill, if signed into law, would create a new Consumer Financial Protection Bureau which would have oversight of all private (non-Federal) education loans made to students.

Supporters say this law will provide better regulation of predatory lenders. Many private schools, however,  say that the law will interfere with a successful educational model, and could eventually lead to more costs and fewer courses.

Borrowing Cap: Good for Students, Bad for Students?

May 3rd, 2010

A proposed US Department of Education rule would place a limit on how much students can borrow for education when the education they’re getting is from for-profit schools. The limit would be 8% of  their expected starting salary. So, if you as a new medical assistant make $25,000, you would pay back no more than $165 a month in loans. Secretary of Education Arne Duncan believes the rule would force underperforming for-profit training programs to fold.

This sounds good for students, but could force many colleges to cancel their programs, which could be bad for students  in the long run, say school administrators.

According to an article from the Albany Business Review, Michael Gutierrez, campus director of Bryant & Stratton in Albany, said some of their most popular programs, such as medical assisting and criminal justice, are popular because they lead to career placement after graduation. But a borrowing cap could mean fewer students would be able to enroll, and fewer students leads sooner or later to fewer programs.

Secretary Duncan maintains that the rule will ensure that for-profit schools have high job placement rates, low loan default rates and high graduation rates.

The Career College Association is fighting the cap, saying placing limits on funds could at a minimum make it more difficult for 360,000 students across the United States who attend for-profit schools.

Gibbs College now a Sanford-Brown Institute

April 5th, 2010

Healthcare was one of the fastest-growing careers even before Congress stepped in with its healthcare overhaul last month. Vocational schools have been responding to this increasing demand  by offering more allied healthcare programs, and discontinuing degree programs that are now less popular.

Before it closed late last year, Gibbs College in Cranston, Rhode Island, offered degrees in business, fashion design, criminal justice, and multimedia.   Now the school in Cranston has started life anew as a Sanford-Brown Institute with certificate programs in allied healthcare (pharmacy technician, medical billing and coding, and medical assisting).  Both Gibbs and Sanford-Brown are owned by Career Education Corporation (CEC).

CEC had planned on closing all 8 Gibbs locations, but has now decided to keep Gibbs Colleges in Boston and Farmington, Conn., along with remaking the Cranston campus into the Sanford-Brown Institute.

Read more in the Providence Business News.

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