December 12, 2019

Devry to cut back on federal student aid

devry-logo

DeVry Education Group Inc. on Tuesday said it would voluntarily edge down the share of money it gets from federal funding, as it looks to limit its exposure amid a government crackdown on for-profit colleges.

The parent of DeVry University and others said it would limit the revenue that each of its six Title IV institutions derive from federal student aid to 85%, including Department of Veterans Affairs and military tuition assistance benefits. Federal regulations allow for 90%, excluding military assistance.

Chief Executive Lisa Wardell said the move “underscores our commitment to finding solutions to the issues facing higher education today.”

The move would diversify DeVry’s revenue streams as the federal government has clamped down on the for-profit education industry in recent years.

Article from Denver post: http://www.denverpost.com/2016/09/20/devry-university-limits-revenue-federal-student-aid/ 

 

 

From for-profit colleges to student loans, at what point does sensible policy start to become political bullying?

nonprofit-for-profit

We can be remarkably two­faced as a nation when it comes to our higher education system. One day it’s the greatest in the world and the next it fails to meet students’ and employers’ needs and is a financial rip­off. It gets exhausting to keep track of whether we’re really good or really bad at all of this. Mark Twain once said we shouldn’t let the truth get in the way of a good story. There are a number of things about college that pundits and policymakers know but won’t discuss or even address, be it to protect their political stance

 

1. Public higher education isn’t really cheaper or better-performing than private higher education There’s how much something costs to make and how much people have to pay for it. Public colleges seem like cheaper alternatives to private non­profit and for­profit education but that’s only because taxpayers, depending on which state you’re from and which institution you attend, foot between 30 and 70 percent of the cost. Take that subsidy away and students at, say, the University of Georgia or Montana State University would be paying ­ and likely borrowing ­ one and a half to twice as much as they do now.

Link to article: http://www.huffingtonpost.com/entry/from-for-profit-colleges-to-student-loans-at-what_us_57cfa1fde4b0f831f7062522?platform=hootsuite

 

ACICS in trouble, federal panel that oversees accrediting agencies voted to de-recognize the council

ACICS Logo

The Accrediting Council for Independent Colleges and Schools got closer to being terminated Thursday after the federal panel that oversees accrediting agencies voted to de-recognize the council, the largest national accreditor that oversees many for-profit colleges.

The National Advisory Committee on Institutional Quality and Integrity (NACIQI) soon will pass its decision back to the U.S. Department of Education, which last week recommendedshutting down ACICS and will have 90 days to decide the accreditor’s fate. An appeal by the accreditor and lawsuits could follow.

Once the decision is finalized, and if a court doesn’t block it, the 245 colleges ACICS accredits, which enroll up to 800,000 students, would have 18 months to find a new accreditor. Depending who you ask, that process either will be a mad scramble or an easy transition, at least for colleges with solid track records.

Either way, the decision to nix an agency that last year served as a gatekeeper for $4.76 billion in federal financial aid is an extraordinary move.

Link to article: https://www.insidehighered.com/news/2016/06/24/federal-panel-votes-terminate-acics-and-tightens-screws-other-accreditors

 

Overall Student Demand for Higher Education Continues to Slip in 2016.

May - Overall Student Inquiries643

Udemy has raised a new round of funding, to the tune of $60 million

udemy

Udemy received a $60 million investment from the South African media company.

Online education startup Udemy has raised a new round of funding, to the tune of $60 million, from South African media company Naspers. Larry Illg, CEO of Naspers Ventures, is joining Udemy’s Board of Directors.

Founded in 2010, Udemy is a marketplace for online courses that brings together people with expertise in one or more areas, and people who want to learn about a new topic or develop a new skill. Udemy provides tools and a market for the experts to make and sell their courses, and takes a cut of their sales.

Link to Article: http://fortune.com/2016/06/02/naspers-invested-60-million-udemy/

 

Are Community Colleges good stepping stones? Not for most!

community college shirt

If you could pick up a college degree for about half the sticker price, you would, right?

If so, you’ve got company. More than 80 percent of community college students say when they start there they expect to continue on and eventually earn a bachelor’s degree from a four-year college or university.

Yet most students fail in that goal, according to a recently published study by the Center for Community College Research at Columbia University’s Teachers College. One-third of the roughly 720,000 students who enrolled in community colleges in 2007 for the first time and were seeking degrees actually transferred to a four-year school, and only 42 percent earned a bachelor’s degree within six years — far below the 60 percent completion rate for students who started at four-year colleges and universities.

Among first-time, degree-seeking community college students overall, only 14 percent managed to earn a bachelor’s degree within six years, the study found.

“Too many students are failed by the current system of transfer between community colleges and universities,” said Davis Jenkins, senior research associate at the center, when announcing the release of the study.

Link to Article cnbc

Federal judge rules Consumer Financial Protection Bureau lacks the authority to investigate for-profit-college accreditors.

ACICS Logo

A federal judge on Thursday struck a blow to the Consumer Financial Protection Bureau’s recent foray into college accreditation, ruling that the bureau lacks the authority to investigate how accreditors approve for-profit colleges.

U.S. District Judge Richard J. Leon rejected the CFPB’sattempt to force an embattled national accreditor, the Accrediting Council for Independent Colleges and Schools, to turn over information about how it decided to approve several controversial for-profit college chains.

“Although it is understandable that new agencies like the CFPB will struggle to establish the exact parameters of their authority, they must be especially prudent before choosing to plow headlong into fields not clearly ceded to them by Congress,” wrote Leon, who was nominated by President George W. Bush. “Thus, having concluded that the CFPB lacks authority to investigate the process for accrediting for-profit schools, I am compelled to deny its petition to enforce civil investigative demand.”

Link to article

UoP going Private

uop

University of Phoenix selling College to Appolo Global

Apollo Education Group (APOL) will sell itself to a group of investors, which will take the company private. A former deputy secretary of the Department of Education, Tony Miller, will take the helm at a tough time. Its shares plunged 75% in 2015.

“For too long and too often, the private education industry has been characterized by inadequate student outcomes, overly aggressive marketing practices, and poor compliance. This doesn’t need to be the case,” Miller said in a statement.

http://money.cnn.com/2016/02/08/pf/college/university-of-phoenix-online-sold/index.html?iid=hp-stack-dom

 

For-Profit Education Companies for PE Investors – Special Invitation

capital roundtableWe are very pleased to be a partner of The Capital Roundtable for its full-day annual winter conference on “Private Equity Investing in For-Profit Education Focused Companies.”

 

Coming up on Tuesday, February 23, in New York City, the theme of this conference is
Using Partnerships to Unlock Investment Opportunities Across the Education Life Cycle.

 

I’m reaching out to you, as a friend of my firm, to offer you a special VIP rate — $500 off the standard rate.  

 

Chairing the conference is Jason Rosenberg, managing director at the Education Opportunity Fund of Sterling Partners, the prominent Chicago-based private equity firm, with offices in Baltimore and Miami.

You’ll hear from Jason and 20 other experienced for-profit education company pros who will share their perspectives and lessons learned.
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 Mary Regan, at 212-832-7300 ext. 0, or email her at mregan@capitalroundtable.com

 

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

Open Letter From the President of University of Phoenix

uop logoDear alumni and students,

Recent negative press stories gave voice to critics who questioned the quality of the education you received at University of Phoenix. I know your degree has value and you demonstrate that every day. After 16 years at the University of Michigan, I came to University of Phoenix as President last year to lead an institution that is uniquely positioned to help more working adults attain college degrees, rebuild and restore the American middle class, and change the lives of students, their families and future generations through higher education.

As I met University of Phoenix students, I quickly learned that not only were 76% of you working while earning your degrees, but you were raising families (67% of you have dependents at home). You are a diverse student body (45% underrepresented minorities, 19% military students, and 66% female), and you are true pioneers (60% first-generation college students), changing the trajectory of your families forever.

I know from conversations with many of you that much of your success is due to sheer determination, perseverance and hard work. You also told me of other reasons, including the University’s passionate practitioner faculty who work in the same industries in which you aspire to grow your careers, your dedicated advisors, 24/7 technical support teams, digital library and curriculum based on how adults learn.

New government data indicate that progress is being made by University of Phoenix and its graduates. The White House College Scorecard shows that among public and private universities with more than 15,000 students, University of Phoenix alumni median earnings are well above the national average (within the top 25 schools), and that the University’s tuition and fees are below the national average among private universities with more than 15,000 students. The University’s official three-year federal student loan cohort default rate is 13.5%, slightly above the national average of 11.8%.

My vision for University of Phoenix is to be recognized as the most trusted provider of career-relevant higher education for working adults. Dr. John Sperling, our founder, realized nearly 40 years ago that working adults needed a university tailored to their needs. He helped bring early innovations later adopted by traditional higher education, like hybrid learning and the ability to earn a degree online, because of the unprecedented access and opportunity they offered working adults. I am committed to carrying on that legacy.

The University’s recent graduation rates (41% for bachelor’s and 54% for master’s) are lower than some traditional universities. I know it is much harder to earn a degree while working and raising a family. I am proud of you, our alumni, and we at the University are committed to doing an even better job ensuring more of our current students join your ranks. I’m willing to work with all of you—along with our faculty and U.S. employers—to innovate and further enhance our focus on academic quality and career relevance to ensure that University of Phoenix continues to provide access to career-relevant, affordable higher education for working adults.

Thank you for serving as a living testament to the value of accessible higher education for diverse working adults and what this can do to change the lives of families and future generations in this country.

Signature of Timothy P. Slottow

Timothy P. Slottow
President | University of Phoenix

Link to Letter: http://www.phoenix.edu/colleges_divisions/office-of-the-president/open-letter-to-alumni-and-students.html?intcid=mktg-home-page:hero-slide1:slottow-open-letter:hero-open-letter

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