December 12, 2018

Discounted Rate for MarketDrivenEDU members to Private Equity Investing in Education-Focused Companies Conference —

edu conference

MarketDrivenEdu is pleased to announce it’s 10th annual Media sponsorship of The Capital Roundtable’s full-day conference on Private Equity Investing in Education-Focused Companies.

 

Coming up on Tuesday, January 15, 2019, in New York City, the theme of this conference is The Role for Private Capital in Bridging the Gap Between Education & Employment.

 

As a friend of MarketDrivenEdu, you qualify for a special VIP rate — $995 ($500 off the standard rate). To register, please call Kristi Paris, at 212-832-7300 ext. 0, or email her at kparis@capitalroundtable.com.

 

In this politicized age, it seems like people don’t agree on much to do with education. For instance —

  • 57% of Republicans support charter schools, versus just 36% of Democrats.
  • Only 33% of Republicans think spending on public schools in their district should be increased, versus 58% of Democrats.
  • Just 28% of Republicans believe college is worth the cost, versus 43% of Democrats.

If you’re a private investor, those stats may make you feel nervous. For instance, you may not want to invest in a for-profit college during Donald Trump’s administration, if the next president may be Elizabeth Warren and the rules may change again.

 

One path forward lies in something everyone can agree on — that the U.S. education system needs to do better at preparing people for joining the workforce.

 

Join more than 20 experts as they assess the outlook for PE investing in the education sector at this all-day conference, chaired by Daniel Pianko, co-founder & managing director at University Ventures.

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 Kristi Paris, at 212-832-7300 ext. 0, or email her at kparis@capitalroundtable.com.   

 

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

Betsy DeVos plans to eliminate gainful employment regulations!!

Betsy Devos for profit education

Education Secretary Betsy DeVos plans to eliminate regulations that forced for-profit colleges to prove that they provide gainful employment to the students they enroll, in what would be the most drastic in a series of moves that she has made to free the for-profit sector from safeguards put in effect during the Obama era.

The so-called gainful employment regulations put into force by the Obama administration cut off federally guaranteed student loans to colleges if their graduates did not earn enough money to pay them off. That sent many for-profit colleges and universities into an economic tailspin because so many of their alumni were failing to find decent jobs.

The Obama regulations — years in the making and the subject of a bitter fight that pulled in heavy hitters from both parties who backed the for-profit schools — also required such schools to advertise whether or not they met federal standards for job placement in promotional materials and to prospective students.

Its clear she understands the logic that a law should not apply to some colleges but not all of them…

Link to article: https://www.nytimes.com/2018/07/26/us/politics/betsy-devos-for-profit-colleges.html 

Education Companies for PE Investors–Special Invitation for July 19

edu conferenceI’m 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, July 19, in New York City, the theme of this conference is
How PE Firms Are Engineering A New Generation of Education Companies.

 

I’m reaching out to you, as a friend of my firm, to offer you a special VIP rate — $500 off the standard rate.  Your price to register is only $995! To register at this special rate, please contact Julie Berger at 212-832-7300, ext.0, or jberger@capitalroundtable.com.

You’ll hear from more than 20 private equity investors and bankers, and education company managers discussing how they’re partnering with schools, corporations, and other kinds of investors to build “next-gen” companies that can drive the remodeling of the U.S. education system and thereby deliver better outcomes for students and better returns for investors.

Click here to learn more about the program.

Chairing the conference is Shoshana Vernick, a co-founder of Sterling Partners’ Education Opportunity Fund. She joined Sterling in 2003, and has devoted her tenure on the investment team, working on all aspects of the deal process including identification and due diligence, and management and oversight of the active portfolio.

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 Julie Berger, at 212-832-7300 ext. 0, or email her at jberger@capitalroundtable.com

 

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

Distance Education growing but not for for profits

Distance Education across the US has been growing steadily, with the exception of for profits.  Tracking Distance Education in the United States – a recent report released by Babson Survey Research Group (BSRG). show the dramatic shift.

 

To see the results of the study: https://www.pearsoned.com/grade-increase-tracking-distance-education-u-s-infographic/?utm_medium=email&utm_source=TiDL_eNews_April2018&utm_campaign=7010N0000003Pqu&cmpid=7010N0000003Pqu

Pearson experiments on thousands of students without their knowledge!

Pearson, the largest education company in the world, conducted a “social-psychological” experiment on thousands of college students in the United States — without asking for permission — by adding language into some of its software programs and then tracking how much the messages affected problem-solving.

The experiment and results were discussed by Pearson researchers, who unveiled a paper on the matter at this month’s 2018 convention of the American Educational Research Association in New York.

Student privacy advocates have long been concerned with education publishing companies using students as “guinea pigs.” Companies, including Pearson, have inserted draft questions into annual tests for possible future use. Students and their families do not know when and which questions are part of the company’s own research on question effectiveness.

Education Week reported on the paper, titled “Embedding Research-Inspired Innovations in EdTech: An RCT of Social-Psychological Interventions, at Scale.” Nearly 9,300 students at 165 college and universities were part of the experiment during spring 2017 when they used MyLab Programming, a Pearson software product employed in conjunction with a computer programming textbook. The publication said:

Without seeking prior consent from participating institutions or individuals, the company embedded “growth-mindset” and other psychological messaging into some versions of one of its commercial learning software programs. The company then randomly assigned different colleges to use different versions of that software, tracking whether students who received the messages attempted and completed more problems than their counterparts at other institutions.

The results included some modest signs that some such messaging can increase students’ persistence when they start a problem, then run into difficulty. That’s likely to bolster growth-mindset proponents, who say it’s important to encourage students to view intelligence as something that can change with practice and hard work.

Link to Post article

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!

 

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

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

 

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