In new draft, U.S. panel endorses specific ideas for reworking higher education accreditation, including keeping link to student aid and defining common data for accreditors to use in judging colleges.
The Department of Education admits failing to include black students in its calculation of loan repayment rates in run-up to gainful employment. The mistake will fuel for-profit claims of unfair treatment by feds.
For-profit institutions have increased their share of the overall enrollment of student veterans, as well as an increasing portion of revenue from Post-9/11 GI Bill benefits. Those are the findings of a new report from the U.S. Senate's Health, Education, Labor and Pensions Committee's majority staff. Sen. Tom Harkin, an Iowa Democrat and critic of the for-profit sector, chairs the committee.
The report tracked Post-9/11 GI Bill spending since the program's creation, in 2008. Enrollment of veterans at for-profits increased to 30 percent of the total last year from 23 percent in 2009, the report found, despite the fact that the sector's overall enrollments tumbled. The percentage of veterans attending a public institution declined, from 62 percent to 50 percent.
Total spending on the Post-9/11 GI Bill increased to $4.17 billion from $1.75 billion during that period. The for-profit industry's share increased to $1.7 billion from $640 million. In addition, the report said eight of the top 10 institutional recipients of Post-9/11 GI Bill benefits last year were publicly traded for-profit chains.
BioHealth College Inc., which owns for-profit colleges in four cities in California, has filed for bankruptcy, The San Jose Mercury News reported. While the colleges are operating, the U.S. Education Department placed them on "heightened financial monitoring" status, which could slow the flow of federal student aid dollars to the institutions. The colleges used to be owned by Corinthian Colleges, but were sold in 2013. The BioHealth CEO did not respond to requests for comment.
Anthem Education, a 34-campus for-profit chain, appears to be on the verge of shutting down campuses, The St. Louis Post-Dispatch reported. Anthem has notified state officials of layoffs coming soon in Missouri, Texas, Wisconsin and Georgia. A Missouri official said that the three campuses in that state are shutting down. Those campuses have also posted notices that enrollment is closed. The Milwaukee Business Journal reported that a Wisconsin campus is closing. A company spokesman declined to confirm for the Post-Dispatch that campuses are closing, but did say that Anthem is facing a serious cash flow problem. He added that “closure isn’t a foregone conclusion.”