forprofit

General Assembly on Measuring Student Results

General Assembly, the largest of the skills boot camp providers, today released a public framework for measuring student outcomes. Boot camps are not accredited. And while many claim job-placement rates of more than 90 percent, those numbers typically are not verified by outside groups. But Skills Fund, a student lender for boot camps, and other players are seeking to play that role.

To design its standards for reporting and measuring student success, General Assembly worked with two major accounting firms to craft an approach public companies use to measure nonfinancial metrics such as social impact and environmental sustainability.

"Our goal is to start a conversation about outcomes predicated on the use of consistent definitions and the application of a rigorous framework and methodology," the company said. "Over time, we hope to develop new measures of return on education that consider income or other criteria that can be used by students and other stakeholders to understand student success in even more specific and granular ways."

FTC Takes Action Against Florida Lead Generator

The Federal Trade Commission announced Thursday that the operators of Gigats.com agreed to settle deception charges.

Gigats.com is an education lead-generation company based in Orlando, Fla., that claims to prescreen job applicants for employers. However, the company was instead gathering information for for-profit colleges and career training programs, according to the FTC.

The federal agency alleges that consumers who provided Gigats with personal information typically requested in a job application were directed to call "employment specialists" who steered consumers to enrolling in education programs that paid Gigats for consumer leads.

"The FTC alleges that these so-called advisers falsely claimed to be independent education advisers but in fact only recommended schools and programs that had agreed to pay the defendants, typically from $22 to $125, for consumer leads that met their enrollment requirements," according to a news release.

A proposed court order imposes a $90.2 million judgment that will be suspended upon payment of $360,000. Gigats is operated by Expand Inc., which also does business as EducationMatch and SoftRock Inc.

Ad keywords: 

Apollo Postpones Vote on Ownership Change

Apollo Education Group shareholders will have more time to vote on a proposed change in ownership for the parent company of the University of Phoenix.

The vote, which was scheduled to take place today, has been delayed until May 6 to give shareholders more time to make their decision. The proposal would sell the company to a consortium of private investors for $1.1 billion.

Of the votes that have come in so far, "nearly 58 percent voted for the proposed transaction," according to an Apollo news release.

"We are gratified that the shareholders who voted in favor of the transaction recognized that this offer represents the best available outcome," said Greg Cappelli, chief executive officer of Apollo, in a statement.

In a letter to shareholders on Tuesday, the company recommended they vote in favor of the proposal. If they didn't, the company would explore other options, including selling Phoenix separately.

Ad keywords: 

Shareholders to decide fate of U of Phoenix ownership

Smart Title: 

A decision today by Apollo Education Group's shareholders could determine today whether U of Phoenix is sold or not.

N.Y. Judge Orders Trump University Case to Trial

A New York judge ruled Tuesday that the state's attorney general's case against Trump University will go to trial, according to an ABC News affiliate.

Donald Trump, the front-runner for the Republican presidential nomination, could testify at the trial, which could be held this fall.

The case is part of an ongoing lawsuit brought by New York Attorney General Eric Schneiderman, which alleges that Trump University made false and deceptive claims to students. The unaccredited institution didn't operate as a traditional school or job training program, but more of an opportunity for students to seek advice from purported experts in real-estate and business.

Ad keywords: 

Capella Buys Coding Academy for $18 Million

Capella Education Co. last week announced the purchase of Hackbright Academy, a nondegree coding boot camp for women, for $18 million. Capella, a publicly traded for-profit chain, said in a written statement that the San Francisco-based Hackbright’s "mission to increase female representation in the tech workforce through education, mentorship and community is a strategic fit with Capella’s focus on providing the most direct path between learning and employment, and Capella’s historic base of largely female students."

The purchase is the fourth major investment by a for-profit in a boot camp, which tend to offer postcollege training in immersive, 12-week sessions that cost around $12,000. Kaplan Inc. two years ago bought Dev Bootcamp. Apollo Education Group made a "significant" investment in the Iron Yard last year. And Strayer Education Inc. bought the New York Code and Design Academy this year.

BMO Capital Markets, which analyzes the for-profit sector, said boot camps could help for-profit chains lessen their reliance on federal financial aid while also reaccelerating the companies' growth.

CFPB Lacks Authority Over For-Profit-College Accreditors, Judge Rules

Smart Title: 

Federal judge rules Consumer Financial Protection Bureau lacks the authority to investigate for-profit-college accreditors.

Kansas City-Based Career College Closes Abruptly

Wright Career College, a small, Kansas City-based career college chain, closed its five campuses last week and filed for bankruptcy. The college said in a written statement it had sought to bring in an outside group to gradually phase out the campuses, but that effort failed. Wright emailed its students about the closure on Thursday night, The Kansas City Star reported.

The chain included campuses in Kansas, Nebraska and Oklahoma. It enrolls about 1,400 students, according to federal data.

“We are saddened by these events,” said John Mucci, Wright's president. “From our beginning in 1921 until our closure, we have always operated with the focus of putting the interests of our students first. It is unfortunate our students cannot complete their programs at Wright Career College. I would like to thank our employees for their tireless dedication and commitment in helping our students achieve their educational and career goals.”

University of Phoenix Lays Off Nearly 500 Employees

The University of Phoenix laid off 470 employees on Tuesday, according to The Arizona Republic. The move comes after Phoenix's parent company, Apollo Group, announced in February that it was in the process of selling the company to a group of private investors for $1.1 billion.

"A significant workforce reduction was announced today in departments across the university. I support the decisions and am gratified by the planning that ensures a seamless student experience with minimal disruption. I am also grateful for the work of our human resources leaders to ensure our colleagues affected by the restructuring receive severance and outplacement services," said Timothy Slottow, president of the for-profit institution, in a statement. "This difficult decision came after careful deliberation and analysis with a focus on streamlined workflow serving fewer students than in years past, improved use of technology and ultimately an approach that ensures our students have the transformative experience that leads to higher retention and improved learning outcomes."

Study Finds VA Fails to Protect Veterans From Deceptive Recruiting

A memo from Yale Law School's Veterans Legal Services Clinic finds that the U.S. Department of Veterans Affairs had the authority to protect veterans from institutions that use deceptive recruiting practices by denying GI Bill funds to those colleges. But the VA and other state approving agencies have failed to do so.

"Although the VA is responsible for overseeing education benefits for veterans, it has been slow to join other agencies in addressing deceptive practices, drawing criticism from congressional and veterans' leaders," said the memo.

The memo prompted Connecticut Senator Richard Blumenthal, a Democrat, to call on the VA to act against deceptive recruitment by predatory colleges.

“The VA has a clear moral and legal obligation to identify fraudulent behavior at schools that enroll veterans,” said Blumenthal. “The VA should also partner with the Federal Trade Commission and other agencies to crack down on predatory for-profit schools so that veterans do not waste their hard-earned benefits on worthless degrees.”

Ad keywords: 

Pages

Subscribe to RSS - forprofit
Back to Top