The U.S. Attorney's Office for the Western District of North Carolina last week issued a subpoena to Universal Technical Institute Inc., the for-profit chain disclosed in a corporate filing. The inquiry covers a "broad range of matters" at the institute's campus in Mooresville, N.C., including its compliance with a federal rule that requires for-profits to receive less than 90 percent of their revenue from the federal government.
Nine in 10 students in California's unaccredited law schools drop out, The Los Angeles Times reported. California is among the few states with many unaccredited law schools, in large part because the state is unusual in allowing graduates of unaccredited institutions to sit for the bar. Most but not all of the unaccredited colleges are forprofit.
Kaplan's CEO, Thomas C. Leppert, will step down after two years on the job, the for-profit higher education company said on Thursday. Leppert will be replaced by Andrew S. Rosen, the executive vice president of Graham Holdings Company, which owns Kaplan. Rosen, a veteran at the company, is also Kaplan's chairman.
Kaplan has diversified in recent years, and does a substantial amount of business with nonprofit higher education. Like several other large for-profit chains, the company has reduced its campus footprint amid the sector's declining enrollments. In February it sold 38 Kaplan College campuses to Education Corporation of America, a privately held for-profit.
The defunct Corinthian Colleges, a controversial for-profit chain, donated $27,600 in contributions over five years to various political operations related to U.S. Senator Marco Rubio, a Florida Republican and presidential hopeful, Bloombergreported. The article said $15,000 of the donations went to Rubio's Reclaim America PAC. Corinthian also gave money to Rubio when he was running for the Senate.
The U.S. Department of Education will halt collections on student loans for roughly 40,000 former Corinthian students who are in default, Reuters reported. A group of former Corinthian students has asked a federal bankruptcy court judge to temporarily suspend debt payments for up to 350,000 students who attended the collapsed for-profit chain during the last five years. A lawyer for the group last week told Reuters that the department would not collect on defaulted loans for 120 days. During that time the lawyer said he hopes to negotiate debt relief for all former Corinthian students.
Robert Shireman, who founded the Institute for College Access and Success and engineered the Obama administration's overhaul of student loan programs and increased regulation of for-profit colleges, has found a new home from which to work on higher education issues. The Century Foundation, which has focused its work on higher education on issues related to college access for low-income students, announced Friday that Shireman will become a senior fellow there as Century expands its education and labor policy teams.
Shireman has had a hand in most of the major higher education policy issues of the last decade, through work in Congress (as an aide to the late Senator Paul Simon of Illinois), the White House (as a member of President Clinton's National Economic Council), in the foundation and think tank world (at the Aspen Institute and at TICAS and its Project on Student Debt), and then as deputy under secretary of education in President Obama's first term. More recently, he has worked on college access, funding and community college issues at California Competes, a nonprofit group.
The Higher Learning Commission removed the University of Phoenix from "on notice" status effective June 25, according to corporate filings published Thursday. The status is a sanction that indicates the institution is moving in a direction that could place it out of compliance with the accreditor's requirements.
In a statement to Phoenix staff and faculty, President Tim Slottow and Provost Meredith Curley wrote: "We are appreciative of the work done by the HLC staff and the independent peer review team made up of professionals in higher education and their recognition of the efforts undertaken by everyone at University of Phoenix to satisfactorily resolve all concerns identified in 2013. But our work in this area is never done. We will host a comprehensive visit again in 2016-17 where we intend to demonstrate the university's further progress and continued compliance with all of the criteria for accreditation."