News, Views and Careers for All of Higher Education
Aug. 28, 2007
The contentious debate surrounding the regulation of for-profit colleges continues churning in California, where Republican Gov. Arnold Schwarzenegger’s administration put forward a five-year legislative proposal Friday to counter a Democratic leader’s stopgap solution. With only three weeks remaining in the legislative session, the parties in the discussion — the institutions, consumer advocates and their respective political backers — are as diametrically opposed as ever. And time to regulate the 400,000-student sector – essentially left unregulated when an earlier law expired this summer – is quickly running out.
“Both parties, both sides, are so far apart, and trying to find a middle ground consensus place for this bill has been incredibly difficult. And it doesn’t seem likely that’s going to happen this year,” says Michael Miiller, a consultant representing the president pro tem of the Democratically controlled Senate, Don Perata, who has sponsored legislation to regulate the for-profit colleges (SB 823) that has been championed by student advocates but stymied by widespread criticism from industry supporters.
The polarization is apparent in the response to two new proposals released late last week. Perata’s SB 45 sidesteps the most controversial elements in his stalled SB 823 — standards for approving institutions, provisions for enforcing said standards, and protections for students — and provides minimal oversight through 2008 while legislators look for a long-term solution. (This would be the second piece of stopgap legislation, as lawmakers already approved a short-term bill this summer to provide the most basic levels of protection through January). In response to SB 45, the Schwarzenegger administration put forward a counterproposal calling for a five-year regulatory apparatus that is already proving contentious, too.
Says Robert Johnson, president of the California Association of Private Postsecondary Schools, of the administration’s proposal: “It’s absolutely balanced. It’s fair.”
Says Elena Ackel, a lawyer with the Legal Aid Foundation of Los Angeles, “This should be the ‘Rotten School Revitalization Act’ because they’re putting all the onus on those students and allowing the schools to get away with highway robbery.”
The administration’s proposal, which a Department of Consumer Affairs spokesman, Russ Heimerich, says has been presented to Senator Perata’s office in hopes that a consensus bill can emerge, relies heavily on regulations (to be determined later by the consumer affairs agency) to enforce a significantly streamlined statute. Where Perata’s original bill, SB 823, was criticized for being unintelligible and lengthy, the administration’s proposal is relatively short (23 pages) and to the point. “What’s actually interesting is that you’re able to read it and understand it,” jokes Johnson, whose association represents career-oriented institutions.
But while Betsy Imholz, director of special projects for Consumers Union, says she appreciates the need to streamline the statute, also stripped from the proposal are basic consumer protections in place under the now-expired law, including standards surrounding minimum program completion and job placement rates. “The assumption that the agency will in fact put good things in regulation and watch over the students … is not well-founded,” she says of the omissions, citing the Department of Consumer Affairs’ well-documented history as an ineffective entity (one of the few points people from both sides of this debate will readily agree upon).
“The bill proposed by the administration is a piece of crap,” adds Ackel, less diplomatically. “It leaves everything at the discretion of the DCA and the Department of Consumer Affairs is a misnomer because everything they do is for the benefit of schools.”
The administration’s proposal for regulating for-profit colleges also exempts more institutions than had previously been excluded, by not only continuing the exemption for colleges accredited by the Western Association of Schools and Colleges (an exemption that would have been subject to review under Perata’s earlier, much criticized bill), but also offering an exemption to nationally accredited colleges that meet certain criteria. That’s welcome news for Johnson, who says all institutions already accountable to accrediting agencies should be exempt. Johnson also welcomes a provision narrowing what was perceived by industry supporters as a broad right for students to sue colleges without necessarily demonstrating that they had been harmed.
“This week is huge. This next week and a half is huge,” Johnson says of the chances the administration’s bill could be adopted in part or wholesale by the Legislature.
“It’s been such a contentious and divisive legislative process this year; very little good will has leaked through on just about any level. We’re hopeful,” says Johnson, “there will be a compromise.”
“It could be that we just run out of time and that students are left high and dry and that, frankly, the good schools in the sector are left with questionable status because we may not get any bill, and that would be a shame,” Imholz says. “Because policy makers have a chance and they still do, but I don’t hear the parties moving closer.”
Want it on paper? Print this page.
Know someone who’d be interested? Forward this story.
Want to stay informed? Sign up for free daily news e-mail.
Advertisement
The new proposal from the California administration also exempts from state oversight any entity that charges less than $2500 for its services. In other words, the proposal is an open invitation to every degree mill in the world to move to California and start selling fake degrees that would be perfectly legal under California law.
The bill has many good features, but it has some that are so awful that it can’t move forward in its present form.
Alan Contreras, State of Oregon, at 9:50 am EDT on August 28, 2007
I believe that until such time as California regulates it’s excessive for profit industry, they should suspend the regulation of nonprofits and publics!
Further, any audit or program review findings pertaining to nonprofits or public institutions found at any time between the date that the law regulating for profits expired and the adoption of any new laws should be thrown out.
Fair is fair, if California is not going to regulate for profits then it would be anticompetitive and unfair to regulate any other higher education entity. Why should forprofits enjoy an advantage that no one else enjoys.
Bob, at 9:50 am EDT on August 28, 2007
In general, the Unite State is a place where equality get praised and approved. The difficulty in setting regulations that governing for-profit institutions lies exactly on that.
Accreditation agencies based their accreditation criteria on all things but the direct measure of quality of the graduates. This approach is at the root of the problem. Without objective measures on graduates, no institution can defense the quality of their graduates and this leads to no standard for regulation to based on.
National and regional accredited institutions are based on different set of criteria for accreditation. But because none of them can prove that their graduates are better educated,there is no convenient base to based the regulation on. Legislatures that trying to set criteria on for-profit institutions will always face the question of fairness — the fairness of judging which institution produces quality graduates. With the lack of direct quality measure of graduates, all they can do is to base their regulation on formalities, which surely didn’t address fairness directly.
Duncan, at 10:15 am EDT on August 28, 2007
Duncan, regulation of for profits, and for that matter accreditation of for profits has historically been about much more than the quality of the education or graduates.
Mostly, it has been about financial aid and student loan fraud, transcript fraud, subpar facilities and unprepared instructors, and I could go on. How about schools that open for two months, collect tuition from prospective students and then close up shop and move to another state.
You can say that most of these things have happened at traditional college’s as well, but not with the frequency or severity.
Focusing the discussion on one narrow dimension of higher education such as the “quality of the graduate” obfuscates the issue and is a cop out.
Of course, it is hard to find an “objective” measure of graduate quality, which is why the attorneys for the for profits keep advancing the issue. The strategy is to move the focus off of the behavior of the school and put it on the graduate.
If the for profits want acceptance they should apply to be accredited by the regionals, but they won’t because they know they would face a different kind of scrutiny then they have in the past. Then their graduates, and institutions would be judged according to the same standards as all other students.
Bob, at 12:50 pm EDT on August 28, 2007
Bob, all the problem you listed for for-profits should be in the regulation and it should apply to traditional institution too — we can’t ignore it just because it happens less frequent.
I simply point out the root of the problem and the implication is that if we do not do anything about it, the problem will persist and taking side will not resolve the problem.
I am not associated with any of the national accredited agencies and institutions and I am not interested in taking their view point as my view point.
Duncan, at 2:15 pm EDT on August 28, 2007
I agree that regulations should be consistent to the extent that they can be, but different entities, under different ownership and governance structures, with similiar but differing missions will need to be treated as such. My suggestion that for profits reaccredit under the regionals would be a good first step toward more consistency and some degree of equivalence.
I disagree as to the frequency issue though. I submit that if you have a neighbor that throws a rock through your window everyday as opposed to your other neighbor whose kid hit his baseball through your window once 5 years ago, you are not going to treat them the same.
For the record, I don’t work for an accrediting agency either.
Bob, at 4:30 pm EDT on August 28, 2007
Advertisement
or search for jobs directly.
Founded in 1898, and affiliated with what is now New York-Presbyterian Hospital since 1927, Weill Cornell Medical College ... see job
The Associate Dean for Advancement is responsible for establishing strategic direction and tactical implementation of ... see job
Position Summary: Primary responsibility will be to manage the department’s marketing activities, including ... see job
Founded in 1898, and affiliated with what is now New York-Presbyterian Hospital since 1927, Weill Cornell Medical College ... see job
Located just north of Houston, Texas, our five campuses serve 1,400 square miles. Our student enrollment is nearly 50,000 in ... see job
Whitehead Institute (MIT Affiliate) an experienced payroll administrator to join a fast paced accouting and finance office. see job
Founded in 1898, and affiliated with what is now New York-Presbyterian Hospital since 1927, Weill Cornell Medical College ... see job
The University of California Riverside invests in your future through employee training and career development, access to ... see job
Position Summary: The Office of Audit and Compliance (OAC) at Princeton University serves as a proactive ... see job
The Citadel invites applications for a Senior Budget Analyst in the Budget Office. see job
Opening Black Boxes in California
There are a number of good provisions in SB 823 that should not be left on the table.
For example, there is an actual faculty standard, however minimal, that is a *higher standard* than that now in place used by WASC:
Sec 94877. Faculty shall possess adequate academic, experiential, and professional qualifications to teach the course or to perform the duties as assigned. A faculty member in a program that leads to a degree shall possess a degree of equal or higher level in the occupation for which certification is sought.
Another important feature of SB 823 that should not be discarded is the study proposal for assessing the extent “to which accreditation by accrediting bodies provides sufficient assurance that the various goals of this chapter have been met” by the end of 2009. The report would then provide recommendations as to whether the existing exemptions from the proposed legislation should be continued.
Section 94841…. © (1) By December 31, 2009, the Legislative Analyst’s Office shall conduct a comprehensive review and provide to the Legislature and the Governor a report that assesses the extent to which accreditation by accrediting bodies provides sufficient assurance that the various goals of this chapter have been met. Based on this assessment, the report shall include recommendations for the continuation, elimination, or modification of the exemptions … [and] shall include, but not necessarily be limited to, all of the following issues:
(A) Are the fundamental roles, legal authority and actions of the bureau and regional accrediting bodies recognized and approved by the USDE substantially comparable in practice, force, and effect and if they are different, what are the differences?
(B) Should California law be amended to permanently extend the exemption for all regionally accredited institutions, thus relying upon such accreditation for the purposes of educational oversight and consumer protection?
© If so, should California law be amended to permanently extend or amend the exceptions and monitoring as contained in subdivision (b)?
(D) Should California law be amended to extend the exemptions only for some portion of the regionally accredited institutions or for some portion of the commissions within the accrediting bodies?
(E) Should California law be amended to rely upon such accreditation for some aspect of its oversight, but not all aspects?
(F) Should California law be amended to continue the exemption granted in former Section 94750, and if so, under what specific conditions?
Opening “black boxes” is always potentially dangerous, politically, but these educational quality issues are of such importance to the public that they shouldn’t be left to the politicians.
It is, after all, the taxpayer that funds all this, at the state and federal level. These modest proposals recognize that reality. Let’s keep them in the bill!
Glen S. McGhee, Dir., at Florida Higher Education Accountability Project, at 8:45 am EDT on August 28, 2007