Category Archives: For-Profit Education

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Could a Gainful-Employment Rule Have Helped Corinthian’s Students?

With the fate of Corinthian Colleges Inc.’s 75,000-plus students now up in the air, a student-advocacy group says that many of them could have been protected from the coming upheaval if a strong “gainful employment” rule had been in effect.

The Institute for College Access and Success had previously identified 114 career-focused programs where more students default on their loans than graduate. This week, in a seize-the-moment move, the organization noted that 25 of those 114 were part of instit…

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Laureate’s Credit Rating Drops Because of Growing Debt

Moody’s Investors Service announced on Friday that it had downgraded the ratings outlook of Laureate Education Inc., to negative from stable. The credit-rating agency affirmed the for-profit education company’s B2 Corporate Family Rating but lowered its senior secured bank-credit facilities to B2 from B1.

Laureate has become increasingly leveraged because of debt-financed acquisitions, and Moody’s said it was concerned that returns on those investments would be insufficient to support a B2 ratin…

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U. of Phoenix Lectures by Clayton Christensen Redefine ‘Model Students’

Disruption models

When Clayton M. Christensen spoke to an audience of liberal-arts-college officials in New York this month about the ways “disrupters” could use the advantages of distance education to upend higher education as we know it, he made his point with an example from his own experience with the University of Phoenix.

In 2011, Phoenix asked him to deliver some 90-minute lectures on innovation and other business principles. Rather than hold them where he teaches, at Harvard Business School, Phoenix rent…

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Advocates for a Tougher ‘Gainful Employment’ Rule Step Into the Fray

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Organizers from Young Invincibles who visited for-profit colleges on Tuesday saw firsthand some of the EDMC posters opposing the gainful-employment regulation hanging at an Art Institute campus in Washington. (Young Invincibles)

Student groups, veterans organizations, and others who want the federal government to put more teeth into its newest proposed “gainful employment” regulation are launching a visible lobbying and public-relations effort over the measure this week. There’s a Twitter campai…

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New Adjunct-Focused Venture Wins Approval to Offer Courses

A new for-profit education organization, designed to give more academic and financial control to the adjunct instructors who teach its online courses, has just won approval from the state of Vermont to operate.

The Vermont State Board of Education’s approval of Oplerno (the company’s name stands for “open learning organization”) means that its courses can qualify for credit at colleges and universities, at the institutions’ discretion.

Robert Skiff, the entrepreneur behind Oplerno, says he plans…

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For-Profit Colleges Add $20-Billion to Economy, Trade Group Says

Washington — The Association of Private Sector Colleges and Universities has released an analysis that says for-profit colleges have a direct impact of about $20-billion on the United States economy.

The analysis was released as some 200 officials of for-profit colleges, students, and employers of the colleges’ graduates are gathering here for a three-day lobbying push on Capitol Hill against tighter regulation. The analysis, prepared by John Dunham and Associates, also includes localized repor…

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Government Investigations and Suits Against For-Profit Colleges: the Grid

With the announcement on Wednesday by New Mexico’s attorney general, Gary King, that his office was suing ITT Educational Services over alleged misrepresentations to nursing students, a total of 22 state attorneys general are now known to be investigating or suing for-profit-college companies.

Several federal agencies, including the Department of Justice, the Securities and Exchange Commission, the Consumer Financial Protection Bureau (which also announced a lawsuit against ITT this week), and t…

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Fake Infomercial for ‘For Profit Online University’ Satirizes Higher Ed

At first blush, it might seem like an ad for another online university you haven’t heard of. But “Let’s Profit Off Each Other” is, in fact, the slogan of the fictional “For Profit Online University”—the subject of an 11-minute parody infomercial that, according to the blog Splitsider, was created by former writers for The Onion, a satirical website, and has been airing at 4 a.m. recently on the cable-television channel Adult Swim.

And it’s quite brutal. Some of the gags: FPOU is “proudly una…

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For-Profit Colleges’ Winter Meeting Focuses on Employment

In the winter months of years past, the Association of Private Sector Colleges and Universities has held swanky meetings at resort destinations like Lake Tahoe or Beaver Creek, Colo., and its annual symposium in Washington was more inwardly focused. As policy makers and the public began to scrutinize the debt, default rates, and poor employment prospects of students coming out of some prominent colleges in the for-profit sector, however, the setting and the tone of the meetings didn’t play well …

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For-Profit Ashford U. Forms Alliance With Forbes

Kaplan University allied its business school with Newsweek magazine seven years ago and then scrapped the deal after just two years. Now Bridgepoint Education’s Ashford University has announced a branding alliance with the Forbes magazine company.

Ashford said on Tuesday that it would pay Forbes Media LLC $15-million upfront, plus a minimum $30-million over the initial 12-year term of the deal, for the rights to the company’s online content for use in bachelor’s and master’s programs in business…