forprofit

For-Profits Increase Veteran Enrollment, GI Bill Revenue

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.

Ad keywords: 

Owner of California For-Profits Files for Bankruptcy

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.

 

Ad keywords: 

34-Campus, For-Profit Anthem Education May Close

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.”

 

Ad keywords: 

Former U.S. Attorney Will Monitor Corinthian Shutdown

The U.S. Department of Education announced on Friday that Patrick Fitzgerald, a prominent former U.S. attorney from Illinois, will lead the team of outside monitors that will oversee the closure and sale of Corinthian Colleges' 107 campuses. An agreement the feds and Corinthian reached earlier this month required that a monitor have access to the for-profit's finances and other internal controls.

Fitzgerald previously led investigations of two former Illinois governors and into leaks relating to the Valerie Plame controversy. His monitoring team will report directly to the Education Department. The team is tasked with ensuring that students are protected during Corinthian's dismantling, the department said.

Ad keywords: 

Pearson's New Competency-Based Education Framework

This week Pearson introduced a new learning model for competency-based education. The company's seven-step "platform" seeks to help colleges prepare, build and sustain successful competency-based programs. It includes advice on market analysis, curriculum design and using data to evaluate student performance.

Court Rejects California AG's Request on Corinthian

A California court on Friday rejected a request by the state's attorney general, Kamala D. Harris, who had sought an injunction to require Corinthian Colleges to disclose more information to prospective students about the company's dismantling. The filing was an addition to a larger lawsuit Harris previously filed against the for-profit chain. That legal challenge includes a wide range of allegations about deceptive marketing and job placement claims. The Superior Court of San Francisco is slated to consider the lawsuit in August.

Ad keywords: 

ITT's federal compliance scramble differs from Corinthian's shut down

Smart Title: 

ITT's missed deadline with the Education Department prompts comparisons to Corinthian Colleges. But ITT is on firmer ground.

Extended Negotiations Over Corinthian's Phasing-Out

The U.S. Department of Education failed to reach an agreement with Corinthian Colleges on how to sell or close its 107 campuses, the department said Wednesday. The two sides last month agreed to an initial plan, through which the feds released held financial aid payments to the cash-starved for-profit chain. Announcements of that deal said negotiators would finalize the phasing-out arrangements for Corinthian by July 1. The department said yesterday that the plan remained due by that date.

“While we did not reach an agreement yet with Corinthian officials, we are optimistic that further conversations with the company will produce an acceptable plan in the next few days that protects the interests of students and taxpayers,” said Ted Mitchell, the under secretary of education, in a written statement.

The company said in a statement it continues to work cooperatively with the department and that they expect to have an agreement completed in the next few days.

Mitchell told reporters Wednesday afternoon that there were “no immediate consequences” for missing the July 1 deadline.

“We extended the MOU under which we were operating with them,” he said. “We’re doing a day-by-day extension.”

(Note: this story has been updated to include additional remarks from Mitchell). 

Ad keywords: 

More Time for Corinthian

(Note: A spokeswoman for the Education Department said Tuesday morning that the deadline remains in place and that the plan is due today.)

The U.S. Department of Education apparently has revised its July 1 deadline to reach an agreement with Corinthian Colleges on a plan to sell or close the for-profit chain's 107 campuses and online programs.

Corinthian is facing a severe cash crisis, due in part to a freeze the department last month put on the company's federal aid payments. Then, on June 23, the feds and Corinthian announced a short-term deal, through which the company received $16 million in released payments in exchange for agreeing to work on a phasing-out plan. However, an announcement on the department's website about that preliminary agreement has now been edited, having dropped "no later than July 1" for the final plan's deadline.

"Corinthian is expected to submit details of the plan to the U.S. Department of Education," the statement now says, "and we will update this announcement with the details of the plan in the near future."

The new ambiguity about Corinthian's fate is certain to draw criticism from consumer advocates, California's attorney general and a dozen Democratic U.S. senators, who have called for a halt to the company's recruitment and enrollment of new students. The department, however, has said it is seeking to minimize disruption to Corinthian's 72,000 students. The for-profit said it would struggle to find buyers if new enrollments are suspended. In addition, the federal government could lose as much as $1.2 billion on students' discharged loans if Corinthian shuts down.

The company also announced on Monday that its creditors had freed up an additional $9 million in funding. The banks had held that money after the department froze its payments.

Corinthian owns the Heald College, Everest and WyoTech chains. Experts have said that Heald, which holds regional accreditation, is likely the most valuable to a potential buyer. In a corporate filing Monday the company said its board had voted to sell Heald. The chain enrolls about 13,000 students at its 12 campuses, which are located in California and in other Western states.

Ad keywords: 

12 Senators Ask Education Dept. to Freeze Corinthian Enrollments

Eleven Democratic Senators joined Sen. Dick Durbin of Illinois in calling on the U.S. Department of Education to freeze new enrollments at Corinthian Colleges' 107 campuses. The for-profit chain is currently negotiating a plan to teach out or sell its Heald College, Everest and WyoTech brands. The group of senators also asked the department to prevent any for-profit that is facing state or federal investigations to participate in the phasing-out of Corinthian's campuses.

Ad keywords: 

Pages

Subscribe to RSS - forprofit
Back to Top