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Admissions Official and Consultant -- at the Same Time

February 1, 2008

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Some in college admissions worry about a "revolving door" ethics problem in which officials of top colleges leave their positions to set up or join companies that advise students and families on how to get into college.

At the Wharton School of the University of Pennsylvania, a senior admissions official didn't quit; she set up a consulting business for applicants while working in admissions at Penn. Judith S. Hodara even noted her Wharton job title (senior associate director of admissions for the M.B.A. program) on the Web site of her company, IvyStone Educational Consultants.

On Thursday, shortly after receiving a voicemail and e-mail from a reporter about her consulting job, Hodara took down her company's Web site. Later Thursday, Penn released a statement: "This matter came to our attention yesterday and we have since reviewed the situation. In order to avoid even an appearance of conflict of interest, Ms. Hodara has resigned from all outside consulting activities."

Asked if Penn considered the arrangement appropriate, a university spokeswoman said via e-mail: "Penn does not consider this type of situation to be appropriate, which is why it has been ended."

Penn officials and Hodara did not respond to questions about whether IvyStone clients ever applied to Penn.

For Hodara, this is the second gig outside of Penn she gave up this week. After Inside Higher Ed reported that she had been serving on an advisory board for a company in Japan that is paid by clients to help them win admission into top M.B.A. programs in the United States, she resigned from that position. In a statement, she said: "Since accepting this position, I've done no work with the company, I have attended no meetings, and I have received no compensation. To avoid the appearance of any possible conflict of interest I've resigned from the committee effective immediately."

Earlier, she had defended her role on the company as ethical because she was not involved in counseling clients, only providing advice to company employees who did so.

IvyStone, however, offered services that were direct consulting. While Hodara took down the company's Web site, archived versions of it are available online through the Internet Archive's Wayback Machine and show that the company offered counseling on a per-visit arrangement up through a three-year package, that counseling covered developing a list of colleges, planning for campus visits, simulated admissions interviews, and help to "present the 'best you' there is." Material on the company's Web site as of Thursday morning noted that Hodara had previously worked in undergraduate admissions at Penn.

"I have first-hand admissions experience as Associate Director of Admissions at the University of Pennsylvania where I read and counseled more than 10,000 applicants, both from the U.S. and abroad. I am currently a Senior Associate Director of Admissions at the Wharton School M.B.A. Program, and I also maintain a strong pulse on the undergraduate process," said Hodara in a Q&A posted on the company's Web site.

Lloyd Thacker, founder of the Education Conservancy, a group committed to reforming college admissions, said he was shocked to hear that an admissions officer had a consulting business for applicants on the side. "I would hope anybody in the profession would say that this is unethical, wrong and should not happen," he said.

There is no evidence that Hodara in any way hid her outside activities. In a biography for a podcast, she noted both her Wharton job and her business.

Thacker said that the situation leaves him with many questions: "Why didn't the college know about her doing business on the side. If people did know, why didn't the college do something about it?"

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Comments on Admissions Official and Consultant -- at the Same Time

  • Tone deaf!
  • Posted by feudi pandola on February 1, 2008 at 9:25am EST
  • It is difficult to understand how the administration of my alma mater is having such a hard time grasping common business sense...and at Wharton no less! Admissions officials at any school have no business, NONE, offering paid consultancy for college admissions as a "side job". I don't care how much public disclosure is provided, or whether or not the side job was known and approved by senior management. It is WRONG and may even violate the Higher Education Act of 1965.

    What the hell is going on at Penn? Who is in charge of monitoring the adminsitrators and professors at my school?

  • Posted by Jim Goecker on February 1, 2008 at 9:40am EST
  • It is unbelievable in this post-Enron era that a business school would not move more aggressively on an ethics situation such as this. The fact that this is the second questionable decision by this individual makes Wharton look even more complacent and unconcerned about ethical behavior.

  • Recruiting high school students at Penn's Summer Programs
  • Posted by concerned parent on February 1, 2008 at 10:10am EST
  • My daughterin high school attended a month-long program at Penn this summer. During the closing presentation of the program, Hodara was a guest speaker for the high school students and their parents. Penn scheduled her to talk about college admissions to selective universities. She had a question and answer period following her presentation and she handed out dozens of business cards for her IvyStone business . I have one sitting right here beside my computer. Certainly, Penn knows the consulting business Hodara is involved in; that is why they scheduled her to speak to high school students and parents. They introduced her as an associate director of admissions at Wharton and as a personal consultant for IvyStone. In this case, they were helping her to promote her consulting services to perspective students from around the country and abroad. As I sat in the audience that day, I wondered about the conflict of interest myself.

  • end of the "ethics" era?
  • Posted by wr on February 1, 2008 at 10:15am EST
  • Wharton's weak response is surprising and troubling. Recently, at a philosophy conference, a colleague told me that his school is thinking about dropping the requirement that business students take business ethics. I hope that these events do not represent a trend. Are similar things happening at other schools?

  • Some things don't change
  • Posted by Phred on February 1, 2008 at 10:35am EST
  • Looks like the ethics courses instituted at Wharton after Michael Milken's fall may need some investigating too. I'm not surprised; when I worked at Penn, leadership was increasingly about perqs, not service.

  • Admissions Consultants Don't Belong On Campus
  • Posted by TrueT on February 1, 2008 at 10:35am EST
  • The precious relationship between paid admissions counselors and university recruiters/admissions officers should be stopped at all levels. This is just one example of terrible trend. The loss of ethics for money should not be tolerated. I think PENN should issue all of its graduates, students, and all those that have been rejected from it an apology for tarnishing the schools reputation. It is time for GMAC as well as all other accrediting organizations to take responsibility and issue standards that don't allow for another Hodara.

  • Posted by Judith on February 1, 2008 at 10:50am EST
  • Why is this woman still working for Penn?

  • Penn
  • Posted by Tom on February 1, 2008 at 12:30pm EST
  • Unethical? Maybe. Illegal. No. This is much ado about nothing. Admissions personnel do more consulting than people realize. Many just aren't compensated.

  • Posted by DS on February 1, 2008 at 1:35pm EST
  • Say one of Penn's financial aid administrators had been found to be receiving kickbacks from a lender in exchange for recommending that lender's loans, as was discovered at a few other schools last year. Those schools (including Columbia and Johns Hopkins) fired those involved. Should we take Penn's action on this case to mean that if that had happened at Penn, their solution would have been to tell the aid administrator to give back the money and call it square? Was her only issue here the fact that she got caught?

    No surprise that an employee would be guilty of such ethical lapses if the employer's attitude is so lax.

  • Not the same thing DS
  • Posted by Rob on February 1, 2008 at 2:40pm EST
  • Hi DS:

    You analogy is not comparing similar things. A better comparison would be having an FA officer at a school also working as a paid consultant giving advice on how to fill out the FAFSA and navigate the FA process. This happens all the time, and I don't see anything wrong with it.

    As far as admissions is concerned - the use of current admissions officers as paid consultants is a common practice. I don't see a problem paying them for their experience and expertise as long as they aren't working with applicants who are also applying to their schools. If they are not going to have any say in the application decision process of a particular applicant then what's the problem. (Why is this any difference than all of consulting that I see profs doing all the time?)

  • Tom is right
  • Posted by MTK , Director of Admissions at Finlandia University on February 1, 2008 at 3:15pm EST
  • Tom is SO right, admissions counselors are doing a lot of consulting and getting very little compensation. It is recognized as part of the profession to assist students in finding a college or university and many admissions counselors/enrollment officers will go out of their way to guide students to other programs at other colleges as a service. It's been done for as long as I have been in college admissions. I can tell you that the thought of doing this crossed my mind more than once, and with the pay scale for admissions personnel as low as it is, I would not blame anyone for trying to make ends meet. Admissions is a profession now, not just a job, and we need to look at a way to keep young professionals in the profession by making it more attractive financially to stay. Perhaps the only conflict of interest would be if parents were paying her to assist them in getting into Wharton, then she crossed the ethics line, other than that, go for it girl!

  • Last comment
  • Posted by MTK , Director of Admissions at Finlandia University on February 1, 2008 at 3:15pm EST
  • On last thing, I worked as a consultant for years while in SC at one of the largest public universities there. There was never an issue of ethics, I simply went to other colleges and assisted them in creating a strategic plan. I also served as an educational consultant with the Carolina Associate of Collegiate Registrars and Admissions Officers (CACRAO) where we went to high schools and worked with kids in learning about higher education in general. Yes, we were never paid, but I certainly used it when I went to get promoted or hired for a VP position in Enrollment Management. I really fail to see the issue here other than someone upset because she had the courage to use her knowledge for profit. How many profs write books, teach adjunct across town, etc? How many administrators get two checks, one for being the administrator and one for "teaching" is that any more ethical?

  • Admissions officer versus consulting
  • Posted by feudi pandola on February 1, 2008 at 4:10pm EST
  • Yo, MTK! Dude...as the TV beer ad says...

    It's really pretty simple. The college admission process should be as pristine, and transparent as possible. Practices such as you espouse, and as Ms. Hodara did, give the general public no assurance whatsoever that they are being treated fairly and equitably in their pursuit of higher education. In fact, they leave just the opposite impression. Places like Wharton should be leading the world in dealing with ethical issues like this with full transparency. Instead, it looks like the opposite is happening with increasing frequency. Many of the auditing abuses we saw at Enron, Worldcom, Adelphia, et al were born in the minds of business school graduates.

    C'mon...if what Ms. Hodara did was kosher, she would not have taken down her website over night or shut down her consulting company.

  • Posted by anon on February 2, 2008 at 1:10pm EST
  • I'm interested in MTK's comments. S/he presented several scenarios.
    1) His/her own unpaid consultation to institutions (unpaid, yes. I'm not sure that consulting to other institutions about how to streamline their system is a conflict of interest if one's own institution is aware of this).
    2) Professors writing books (which is a. part of job description and b. not usually bringing in lots of $)
    3) Professors adjuncting across town (ethics of which would appear to be derived from whether or not this is forbidden in their contract).
    4) Admissions executive actively reviewing applications at an institution and charging high school seniors for advice on how to impress people like herself who read the applications.

    It is not simply a matter of having the courage to seek out a second paycheck for one's knowledge. All second paychecks are not alike, and it is not enough to say that consulting is unethical. Hence the need for a critical thinking process.

  • Posted by JK on February 3, 2008 at 1:35pm EST
  • Let's be clear on this notion of a conflict. From what I understand, Ms. Hodara works at Penn in admissions to the grduate business school, while her consulting firm counseled high school students on undergraduate admissions. Where is there in this situation an ethics violation? And why is it unethical for Ms. Hodara to use experience gained in her previous positions at Penn for her business. isn't that called building a career?

  • Posted by Patrick at CollegeWeekLive on February 4, 2008 at 1:05pm EST
  • In a world where today's admissions staff become tomorrow's consultants- it is inevitable that professionals with admissions expertise may work in different roles at different times in their careers. In fact those who've worked 'on both sides of the table' usually have broader perspectives and insights (than do people who've only worked on one side of the admissions process). What is essential however-- is that any professional identify their affiliations (an admissions full disclosure).Is this addressed anywhere in a counselor/admissions code of ethics? Not to my knowledge.

  • Penn-tarded
  • Posted by Andy Lockwood , Principal at CollegePlanningAdvice.com on February 6, 2008 at 8:10pm EST
  • When my partner told me about this, I thought he was kidding. An admissions officer at an elite school who also provided counseling services for students looking for the inside track on how to get into an elite school?

    The most ridiculous part - this smart, Ivy Leaguer had NO FRIGGIN' IDEA that this might present a conflict of interest?

    Sweet mother of all things holy - this proves that common sense is lacking even at our nation's loftiest academic institions!

    And one more question that needs to be answered - why is this ethically-challenged chick still working at her "day job?" Why wasn't she escorted out of the building as soon as university officials caught wind of what she was doing?

    Unbelievable.

  • Posted by Tom Bisogni on February 8, 2008 at 3:30pm EST
  • Why does Hodara and others like her need to create a consultancy practice for the very job they or someone else at her University are getting paid to do? It sounds like a good way to liberate money from parents who are interested in getting their children into an Ivy league school and who are willing to pay for an extra edge. But it is not balanced for other applicants who are not as fortunate. That is one of the defining points of a question involving ethics.