September 27, 2021

Breaking News! Secretary DeVos Resets the Clock on ACICS!

The U.S. Department of Education said Tuesday evening that a controversial accreditor, which had lost its federal recognition in 2016, would again be eligible to serve as a gatekeeper of financial aid.

The department restored the recognition of the Accrediting Council for Independent Colleges and Schools, which oversees primarily for-profit career colleges. That means that more than 100 colleges still accredited by the council will remain eligible to receive federal student aid, for now. It also means that the council, commonly known as Acics, will not have to face a federal advisory panel in May as part of the process to regain recognition.

The department’s announcement is a response to a federal-court ruling, issued in late March, that concluded the department had used a flawed process in removing the accreditor’s recognition. The accreditor sued the department after its recognition was removed, starting an 18-month countdown in which all of the colleges that it had accredited would have to find a new accreditor by June or lose access to federal student aid.

The judge’s decision did not overturn the department’s earlier action. But it did require the education secretary, Betsy DeVos, to reconsider whether Acics should remain recognized, after she reviews some 36,000 pages of material that the accreditor submitted to the department nearly two years ago. Although the material had been requested by the department, the court found that it had not been reviewed by department officials in revoking the council’s status. “As the court ordered, we will fairly consider all of the facts presented and make an appropriate determination” on the accreditor’s recognition, DeVos said in a news release.

The department’s announcement does not necessarily mean she will reverse the decision made under the Obama administration. But she will consider more options than just the binary choice of either renewing or denying the council’s recognition. And the council will have new opportunities to prove itself to the department, according to DeVos’s official order.

Link: https://www.chronicle.com/article/DeVos-Gives-Controversial/243028 

 

CECU conference Discount link for Market Driven EDU members

 

Join us at the 2018 CECU Convention on June 3-5 in Orlando, Florida this year! The CECU Convention is the largest gathering of sector leaders nationwide and you won’t want to miss out.

As many of you know, never before has our sector seen so much opportunity for progress than what we see ahead of us today. With recommendations submitted for reauthorization of the Higher Education Act (HEA), we look forward to a future with accountability measures that apply equally to all sectors of higher education and a common set of outcomes to support our students.

So join CECU in June to hear updates from sector thought leaders and the most up to content presented by industry experts.

There is something for everyone at the CECU Convention – Choose your itinerary from over 40 education sessions or come early for any of our pre-meeting workshops.

Last year, 65% of attendees came from schools. Many were C-suite executives and decision makers as well: 30% were CEOs/Owners, and 34% were part of the executive team.

 

So don’t miss out, register today. From now until April 30th register using the Code: MarketDriven and receive 5% off your registration.

 

CECU Discount code Code: MarketDriven

CECU registration link: https://www.eiseverywhere.com/ereg/index.php?eventid=282108&token=46904875dd95d7f291400795b919747da5

Hope to see you there!

 

Hurry before Leadscon price increases and also save an additional $100 as a MarketDrivenEDU group member

Hurry before Leadscon price increases and also save an additional $100 as a MarketDriveEDU group member

Education lead models are evolving and new verification tools, platforms, and business models are enabling a strong shift from quantity to quality. With this evolution, it’s critical that EDU lead buyers have the latest resources to improve ROI and conversions. We have all of these resources available for you at LeadsCon Las Vegas March 5-7, 2018 at The Paris. Register before this Friday 2/9 when rates increase to secure your spot and improve your sales results. http://bit.ly/2AGtUQf 
You MUST include the special discount code EDUVIPLV it will take off $100 from the registrations

EDU Lead Gen – The Next Gen

• Learn what has changed from the school’s perspective and how to accommodate
• Obtain an overview of the entire sales funnel and the technology used to monitor
• Understand what the future holds for EDU Marketing based on the perspective of the Lead Buyers
Speakers:
• Joe Laskowski, Higher Ed Growth
• Deborah Solmor, Career Education Corporation
• Esther Duong, International Education Corporation
• Kolin Porter, EDUMaximizer

Register before this Friday 2/9 when rates increase to secure your spot and improve your sales results. http://bit.ly/2AGtUQf 
You MUST include the special discount code EDUVIPLV it will take off $100 from the registrations

Private Equity Investing in Education-Focused Companies Conference Discount

MarketDrivenEDU,  is very pleased to be a partner of The Capital Roundtable for its full-day annual winter conference on “Private Equity Investing in Education-Focused Companies.

Coming up on Thursday, January 25, in New York City, the theme of this conference is
Scouring the Education Industry for Niches Underserved by Investors.

 I’m reaching out to you, as a friend of my group, to offer you a special VIP rate — $500 off the standard rate.  Your price to register is only $995!

Chairing the conference is Atif Gilani, founding partner at Renovus Capital Partners, an education and training-focused private equity firm founded in 2010.

You’ll hear from 20 experienced education company pros who will share their perspectives and lessons learned. These experienced investors will discuss which segments they find most intriguing — like vocational technology, corporate training, pre-K, K-12, and post-secondary.
At this conference, you’ll enjoy exceptional networking opportunities. The agenda includes ample time, with session breaks and a buffet lunch, to exchange ideas, swap business cards, and form new relationships.

 

To register, please call Sarah Burd, at 212-832-7300 ext. 0, or email her at sburd@capitalroundtable.com

 Please be sure to mention MarketDrivenEDU to receive this low VIP rate.  And note this rate is not available online. 

Possible changes to gainful employment signaled by the DOE

Recent discussions from the department of education indicate changes may be in the works.

 

Session 1: December 4-7, 2017

 

Issue Paper #1

 

Issue:                          Scope and Purpose

Statutory cites:           20 U.S.C. § 1221e-3; 20 U.S.C. § 3474; 20 U.S.C. § 1231a; 20 U.S.C. §§ 1001(b)(1), 1002(b)(1)(A)(i), (c)(1)(A); 20 U.S.C. § 1088(b)

 Regulatory cites:       34 CFR § 668.401

Summary of issue:     On October 31, 2014, the Department published final regulations establishing standards and other requirements for title IV-eligible programs that prepare students for gainful employment (GE) in a recognized occupation.   Those regulations went into effect on July 1, 2015.

 

The regulations established an accountability and transparency framework for GE programs.  The accountability framework conditions the eligibility of a GE program based on (1) the program’s performance under a debt-to-earnings (D/E) rate measure and (2) the institution’s certification that the program meets certain accrediting agency and State requirements.  The transparency framework provides students, prospective students, and their families with accurate and comparable information about a GE program to better inform their educational and financial decisions about enrolling or continuing in the program.  Finally, the GE regulations included reporting requirements to provide the Department with information required under both the accountability and transparency frameworks.  In adopting the accountability framework, the Department acted under its authority under sections 101, 102, and 481(b) of the HEA, which pertain solely to GE programs, among other authorities.  The Department also relied on its broader authority under the General Education Provisions Act and the Department of Education Organization Act.

 

A common criticism of the GE regulations is that one of the problems the rules aim to address—students being saddled with unaffordable levels of loan debt in relation to their earnings—is an issue across all institutions, and not just those that offer GE programs.  In addition, some have argued that many of the factors contributing to poor student outcomes, as measured by the D/E rates, are outside of the control of an institution.  Accordingly, some have suggested that the regulations should apply to all programs, not just GE programs, and that the loss of eligibility resulting from poor D/E rates is unfairly punitive.  Critics have also argued that the reporting and compliance requirements are overly burdensome.

 

In the issue papers that follow, we discuss in detail the individual components of the GE regulations.  Here we address broad issues of scope and purpose of the regulations.


 

Questions for consideration by the committee:

  • Should the regulations apply, in whole or in part, to all programs or just GE programs?
  • Should the Department retain, amend, or eliminate the accountability framework?
    • Should the Department retain, amend, or eliminate the D/E rates? For all programs or just GE programs?
    • If retained or amended, should the D/E rates measure be used to determine eligibility, result in other sanctions (e.g., warnings or other enhanced disclosures), and/or be used as a disclosure? If retained or amended for purposes of disclosure, should this pertain to all programs or just GE programs?
    • Should the Department retain, amend, or eliminate the certification requirements? For all programs or just GE programs?
  • Should the Department retain, amend, or eliminate the transparency framework? For all programs or just GE programs?
    • If D/E rates are removed from the accountability framework, should D/E rates be used for disclosures under the transparency framework?
  • Are program disclosures alone effective in helping enrolled and prospective students identify lower-performing programs with respect to job earnings?

 

Articles on this topic:

https://www.insidehighered.com/quicktakes/2017/11/30/education-department-signals-possible-changes-gainful-employment-rule#.Wh_84Y-jBFo.linkedin

https://www.wsj.com/articles/house-gop-to-propose-sweeping-changes-to-higher-education-1511956800

Capella & Strayer tie the Knot!

capella and strayer merge

Strayer Education Inc. and Capella Education Co. announced Monday they are merging, in a $2 billion deal that will make the combined company one of the largest for-profit college operators in the country.

Shareholders in Herndon, Va.-based Strayer will own 52 percent of the combined company’s stock, while Capella investors will hold the rest. Both boards have voted unanimously for the deal, which the companies anticipate will close in the third quarter of 2018. They will need state and federal approvals, including a thumbs up from the Department of Education.

Neither Strayer nor Capella has endured the legal headaches of some of their competitors, yet tepid growth in the number of people seeking degrees remains a hurdle — but one that investment analysts say the combined companies may be able to overcome.

Link to article: https://www.washingtonpost.com/news/grade-point/wp/2017/10/30/for-profit-college-operators-capella-and-strayer-join-forces-in-a-2-billion-merger/?utm_term=.2e826d6c5d1a 

 

Analysis of the proposed merger by Trace Urdan:

In the all-stock transaction as described, CPLA investors will receive 0.875 STRA shares and own 48% of the combined company post-merger. On a combined basis the new company will offer 135 degrees and certificate programs to more than 80,000 students. Its revenue will approach $900 million annually, its EBITDA will approach $130 million and its distributable free cash flow will be approximately $80 million. Its implied equity value will be roughly $1.9 billion.

The new entity will combine back office operations and share best practices, but each academic institution will be separately and independently maintained and operated. Pending approval by the U.S. Department of Education, each of its accreditors (HLC and Middle States) and various state regulatory entities, it expects to close the transaction within the next eight months. The new parent company will change its name to Strategic Education and retain the STRA ticker.

Link to full analysis:

https://www.linkedin.com/pulse/chocolate-bars-vs-candy-corn-sorting-strayer-capellas-trace-urdan/?trackingId=dRoiTGJ4KKEI1VdwCq%2FWaQ%3D%3D

DOE Will Allow Two Large For-Profit Colleges To Become Nonprofits

US Department of Education

The Education Department has offered its stamp of approval for the controversial sale of two massive for-profit colleges, Kaplan University and the Art Institutes, according to emails obtained by BuzzFeed News — allowing both schools to convert to nonprofit colleges. Kaplan, which was purchased by Purdue University, will become a public college.

The two high-profile conversions have been closely watched by the for-profit education industry, which sees them as a bellwether for future attempts to convert to nonprofits. More and more for-profit colleges have been eyeing conversions as the industry continues to struggle to enroll students.

But there were questions about whether conversions would be allowed by federal overseers. The Obama administration had begun to block such deals over concerns that schools would not actually operate as nonprofits, independent from the for-profit entities that once owned them. There were also worries in and out of the administration that nonprofit conversions were being used to evade regulations.

 

Link to article: https://www.buzzfeed.com/mollyhensleyclancy/the-education-department-will-allow-two-large-for-profit?utm_term=.ojznP2Dyy0#.kn14qB2PPN

 

Are changes in Title IX coming?

Betsy Devos for profit education

 

Wednesday, the U.S. Education Department confirmed that the education secretary, Betsy DeVos, would appear at George Mason University on Thursday to make a “major policy address on Title IX enforcement.” That announcement, previously reported by BuzzFeed News, heightened advocates’ fears that Ms. DeVos was poised to roll back the department’s efforts on mitigating campus sexual assault, a hallmark of the Obama years.

BuzzFeed had also reported that the department’s top civil-rights official, Candice Jackson, intended to revisit the department’s 2011 “Dear Colleague” letter — a directive that laid out exactly what the government expected colleges to do to protect students from sexual violence — through a process called notice and comment.

Link to article: http://www.chronicle.com/article/A-DeVos-Speech-on-Title-IX/241108 

Devos to potentially roll back Gainful employment and borrower repayment policies

devos gainful employment

DeVos Will Roll Back 2 Obama Regulations, a Blow to Consumer Advocates – The Chronicle of Higher Education.

The U.S. Department of Education is beginning the process of rolling back two Obama-era regulations aimed at holding for-profit colleges accountable and helping students who may have been misled or defrauded by them: the borrower-defense-to-repayment regulation, which was scheduled to go into effect on July 1, and the gainful-employment regulation, which was already in effect.

The gainful-employment regulation was meant to hold career-preparation programs accountable for the outcomes of their graduates. Specifically, if the estimated loan payments of a program’s graduates exceed a certain percentage of their income over a period of years, then the program would risk losing federal student aid.

The industry is finally feeling some relief

Link to Chronicle article:  http://www.chronicle.com/article/DeVos-Will-Roll-Back-2-Obama/240337?cid=wsinglestory_hp_1

 

Special discount for CECU Conference, formerly the CCA!

cecu

Special group Member discount for CECU Conference, formerly the CCA

Market Driven EDU Members, it’s not too late!
Don’t miss your chance to register at a discounted rate for the CECU Convention. Special member pricing is available to all maketdrivenedu subscribers.

Register by May 13th and use the code MDE to receive 10% off your registration! View the Convention website for the full schedule and detailed information about the show.
http://www.cecuevents.org/convention/registration/ use the code MDE to receive 10% off or email Kelley info is below.

Don’t miss your chance to join hundreds of sector executives and thought leaders at the 2017 CECU Convention. This is the largest gathering of the sector all year and you won’t want to miss the networking opportunities, education sessions and prizes that await in the EXPO Hall.

Hope to see you in Las Vegas, June 6-8th. For information, please contact Kelley Blanchard at Kelley.blanchard@career.org or 571-640-6471.