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!

 

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

 

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

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. 

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 

Interactive Map showing free college opportunities by state

free college

College Promise Programs

Over the last decade—but especially in the past few years—programs with the “promise” label have been advanced at local, state, and federal levels. These programs are designed to increase college attainment in particular places. The Kalamazoo Promise program, created in 2005, inspired similar programs in economically disadvantaged communities in Michigan and other states. Researcher Michelle Miller-Adams and others at the W.E. Upjohn Institute for Employment Research label these programs “place-based scholarship programs,” defined as programs that provide “universal or near-universal access” to financial support for college based on where students reside (e.g., school district or city) or whether they attend specified schools.

Link to article: http://ahead-penn.org/creating-knowledge/college-promise

Link to Map: http://www.whimsymaps.com/view/collegepromise

 

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