October 22, 2017

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 

Cosmetology Schools get a little win in Gainful Employment

cometology and the GE rule

A small victory for Cosmetology schools.

A Federal Judge Partially Blocks Enforcement of Gainful-Employment Rule as it pertains to cosmetology schools

6/28/17 A federal district court judge issued an order Wednesday partially blocking enforcement of the gainful-employment rule for cosmetology schools that sued in February to halt the regulation.  Case 1:17-cv-00263-RC Document 30 Filed 06/28/17

The Department of Education  had defended gainful employment in court in March but earlier this month it announced that it would pursue a rewrite of the regulation.

The Federal judge ordered that the cosmetology schools be given additional flexibility with filing appeals of earnings data and that the department must now give those schools more time to file appeals. The order applies only to American Association of Cosmetology Schools programs.

In this case, the Court considers whether the Department of Education (“DOE”) acted
arbitrarily and capriciously with respect to cosmetology schools when it decided to
presumptively use earnings data that does not account for unreported income. Although the
DOE was justified in using reported income as the presumptive measure of overall income, it
arbitrarily and capriciously made rebutting that presumption overly difficult.
In setting standards that determine which proprietary schools’ graduates are entitled to
federally backed student loans, the DOE looks to the rates at which the schools’ graduates are
“gainfully employed.” To determine whether graduates are gainfully employed, the DOE has
adopted a test that compares the graduates’ income levels to their levels of debt. To determine
the graduates’ income, the DOE presumptively uses the Social Security Administration’s
(“SSA”) income data. This data does not account for income that is not reported to the Internal
Case 1:17-cv-00263-RC Document 30 Filed 06/28/17 Page 1 of 40
2
Revenue Service. Schools may appeal the DOE’s use of SSA data through “alternate earnings
appeals,” which, if successful, allow them to use alternate measures of income before the debt
to-earnings rates become final. To submit such an appeal, a school is required to use either state
sponsored data pertaining to over half of its graduates during the relevant timeframe or gather
income data on almost all of its graduates through a survey. Schools that fail the debt-to
earnings test for a long enough time lose eligibility for federal loans. Schools at immediate risk
of losing federal-loan eligibility are required to warn their students and prospective students that
they may be ineligible for student loans in the near future.

Link to the official order

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 VIP rate for Group Members Capital Roundtable PE investing in Education conference NYC

Market Driven Edu is pleased to announce The Capital Roundtable’s full-day conference on Private Equity Investing in Education-Focused Companies.

 

Coming up on Tuesday, July 18, in New York City, the theme of this conference is Education from 2017 to 2021 — What’s Next for Investors?

 

As a friend of Market Driven Edu, you qualify for a special VIP rate — $995 ($500 off the standard rate).  To register, please call Sarah Burd, at 212-832-7300 ext. 0, or email her at sburd@capitalroundtable.com.

 

These are exciting times for private investors in education-focused companies, even amid the uncertainty about what’s going to happen next.  Despite galactic differences of opinion, everyone’s goal is to deliver great education to as many people as possible.

 

Education is facing changes and challenges in all sectors.  Pre-K is becoming professionalized, migrating away from traditional childcare to more school-based curriculums.  Public K-12 schools are lagging behind, leading to the expansion of new alternatives, such as charter schools and pri­vate schools.  Higher education costs are rising faster than inflation, financial aid isn’t keeping up, and colleges need innovative solutions for keeping costs down.  And the gap is widening between the skills students are learning and the skills employers say workers need.

 

Chairing the conference is Dan Neuwirth, a general partner at Quad Partners. Dan co-founded the firm in 2000 and has led investments across its education portfolio.  Prior to Quad, he worked in investment banking and principal investing at Donaldson Lufkin & Jenrette, and at Goldman Sachs & Co.

 

Our 20 knowledgeable speakers will boost your knowledge of this attractive area through their first-hand experiences and by answering key questions. See speaker list here.

 

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 Market Driven Edu to receive this low VIP rate.  And note this rate is not available online. 

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.

Purdue University acquires Kaplan Online and 15 Campus locations for $1.00

In essence another for-profit to non-profit conversion of sorts.  Interesting way for Purdue to get into the online education sector.

Arlington-based Graham Holdings Co. has sold off its Kaplan University business — and its hundreds of millions in revenue — to Purdue University for just $1.

The deal will place the for-profit education systepurdue acquires kaplan universitym into a new nonprofit structure managed by West Lafayette, Indiana-based Purdue. The nonprofit will pay Graham to operate Kaplan University under a 30-year contract, but the nonprofit has the option to buy out that contract after six years.

Graham Holdings will also receive a share of the revenue generated from the new operation, but its too early to estimate how much that will be because it will be based on future revenue minus expenses.

The for-profit education system has faced several challenging years under the Obama administration, and many companies like Kaplan have been affected.

“I think we have built a very solid business over time. The reality of this is that it has been challenging. Why not put our two forces together and figure it out?” said Pinkie Mayfield, Graham Holdings vice president and special assistant to the chairman, in an interview. She said it would have taken Purdue years to build the type of functionality that Kaplan has been able to with its university system.

Kaplan Higher Education generated $617 million in revenue in 2016, so it represents a big chunk of Graham’s overall revenue, which was $2.5 billion in 2016.

 

link to article: https://www-bizjournals-com.cdn.ampproject.org/c/s/www.bizjournals.com/washington/news/2017/04/27/purdue-universitypaid-just-1-up-front-for-graham.amp.html 

2017 Market Driven Education Industry Group’s 6th annual Education Advertising & Marketing survey

mdeud survey

It’s that time again, the 2017 Market Driven Education Industry Group’s 6th annual survey, in conjunction with Edufficient, one of the fasting growing EDU-specific Performance Marketing Agencies has arrived.

This survey has become a standard for the industry, bringing together Schools, Lead Providers & Agencies, helping to create an updated master list of industry service providers.

Hundreds of screened participants help make this a valuable tool for all those who participate.

  • All participants are reviewed for accuracy & relevance to the industry.
  • You must complete 75% of the survey questions to qualify and receive results!
  • All requests for survey results from non-participants will be denied!

Service providers contact information must be accurate to qualify. Remember, schools will receive your contact information so they can contact you, so please double check for accuracy.

All School contact information is private and will not be distributed.                        Only vendor info will be made available to participating schools.

Link to Survey:  https://www.surveymonkey.com/r/2MYH9MD 

Meet 2,800+ prospects at LeadsCon – final week to save an extra $150! Member Discount

leadscon new logo

Meet 2,800+ prospects at LeadsCon – final week to save an extra $150! Member Discount

Special MarketDrivenEDU group discount, lowest price available for this conference.
$150 Expiring Soon – New Business Partners Are Yours For The Taking!
A number of new sessions have just been added! This is the strongest and most robust LeadsCon program ever! All presented by 30+ of the top brands in performance marketing. Many of your customers and prospects have already signed up. Join your peers in Las Vegas to find new lead sources and acquire the latest best practices and regulatory updates on Lead Management, Lead Buying and Lead Gen. Early Bird rates expire this Friday on January, 27th and only through this email, can you save an additional $100 by using this special link: http://bit.ly/2k5IJUw

The Latest Conference Program Hot Topics Include:
• The Millennial Challenge: How to Build an Authentic and Quality Online, Social and Mobile Experience to Attract Millennial Shoppers and Build Brand Loyalty
• Are Mortgage Sales Ready for a Tesla Moment?
• Shifts in Insurance: How Top Agents Drive Growth
• Need for Transparency: Where are Your “Network” and “Agency” Leads and Clicks REALLY Coming From? It is Time We All Find Out
• Driving Lead Acquisition with Customer Journey Analytics
• View Full Agenda http://bit.ly/1PAdeQ5
• View Full Speaker List http://bit.ly/2jD2B52

This is your final chance to save a total of $150 from next week’s pricing. This special offer expires on January 27th, so act fast and don’t miss out! http://bit.ly/2k5IJUw
LeadsCon Room Block Filling Up Fast   NO VIP CODE needed:  you dont enter one it has the discount based on the link
Rooms at The Paris are beginning to fill up fast. Lock in our special group rate of just $170/per night before they sell out by clicking here: http://bit.ly/2iYebXi

Private Equity Investing in Education-Focused Companies 1/26 – Special Discounted Invitation

capital roundtable

MarketDrivenEdu is pleased to announce The Capital Roundtable’s full-day conference on Private Equity Investing in Education-Focused Companies.

 

Coming up on Thursday, January 26, in New York City, the theme of this conference is Why Investors Are Concentrating on Tech-Enabled Niches in Education.

 

As a friend of MarketDriveEdu,  you qualify for a special VIP rate — $995 ($500 off the standard rate). 

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

Back in the day, buyouts of for-profit post-secondary school systems were the transactions that put private equity investors on the map in the education sector.

Nowadays, investors have shifted their focus to smaller companies that have carved out niches in the K-12, ed- tech, and continuing education and corporate training sectors — examples are, more sophisticated testing and measurement tools, better data management processes and meeting other specialized educational needs.

 

Our 20 knowledgeable speakers will boost your knowledge of this attractive area through their first-hand experiences and by answering key questions. See speaker list here.

 

Chairing the conference is Tom Formolo, a partner at New Harbor Capital. He formed the firm in 2013 after 23 years at CHS Capital, where he headed the education team.

 

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. 

Trump Wins! How does that affect your school?

trump

 

 

Donald Trump was elected as the 45th president of the United States on Tuesday in a stunning culmination of an explosive, populist and polarizing campaign that took relentless aim at the institutions and long-held ideals of American democracy.                                                                                                                                                                                                       Whats the impact on your business?

Gainful Employment?

For much of the race, Mr. Trump offered few clues about his specific plans for higher education, other than he shocked them all.

http://www.chronicle.com/article/Trump-s-Surprise-Victory/238346

 

 

 

Local