The Accrediting Commission of Career Schools and Colleges, a national accrediting agency, has dropped an inquiry into 10 campuses owned by Career Education Corp., the for-profit higher education provider announced Tuesday. The accreditor had asked the company to "show cause" why the campuses should not have their accreditation withdrawn in the wake of Career Education's earlier acknowledgment that it lacked sufficient documentation for some job placement data. The campuses are now free to pursue new academic program approvals.
Higher Education Quick Takes
Representative Tom Petri, a Wisconsin Republican, introduced a bill in Congress on Monday that would restructure federal student loans, making all repayment income-based and withholding payments directly from borrower's paychecks through the Internal Revenue Service. The loans would be unsubsidized. Petri, who was an early supporter of direct lending, has proposed such a program before with little result; his latest bill, H.R. 6674, has no cosponsors.
Justin Draeger, president of the National Association of Student Financial Aid Administrators, said he supported the bill, arguing it could "nearly eliminate student loan default." A similar system is used in Australia and has occasionally been mentioned as a model for the United States as concern about student debt has grown.
The average salary of assistant football coaches at colleges with big-time athletic programs is now $200,000, according to an analysis by USA Today. (By comparison, the average salary of a full professor at a public doctoral institution is $121,000.) Two of the assistant coaches are earning more than $1 million, and several universities are spending in the seven figures for the assistant coaches as group. Clemson University's assistant coaches earn more than $4.2 million, while Louisiana State University's assistant football coaches earn more than $4 million.
The State Higher Education Executive Officers Association has released new data on the wage premiums received by those who are college graduates. The data show a consistent economic advantage for those with a higher education. However, there is variation on the extent of the wage premium when the data are analyzed by field of study, and by state.
Columbia University on Monday announced that Mortimer B. Zuckerman has pledged $200 million to endow a Mind Brain Behavior Institute to support interdisciplinary neuroscience research. The institute will involve faculty members from Columbia's arts and sciences, engineering and medical colleges.
The University of Northern Alabama has dismissed Bradley Patterson from the football team for a Twitter post in which he used a racial slur to refer to President Obama, USA Today reported. The tweet came during President Obama's address on his trip to meet family members of the victims of Friday's Connecticut school shooting, and complained about the speech pre-empting a football game on television.
Twenty-two members of a fraternity at Northern Illinois University have been charged with violating hazing laws in the death of a freshman, The Chicago Tribune reported. The freshman died after participating in an event in which he went from room to room in the Pi Kappa Alpha fraternity, and answered questions in each room, and was then given vodka and other liquor.
The Consumer Financial Protection Bureau on Monday released the procedures the agency will use to scrutinize lenders of private student loans, as well as the servicers for federally guaranteed loans, to ensure that they are complying with existing banking regulations. Such "examinations," intended to uncover and, if necessary, penalize companies that violate consumer protection laws, have led to heavy fines for credit card companies, and the agency is also examining mortgage lenders and big banks. libby -- here or somewhere, can you add some language along the lines of what we discussed? "While the guidance published Monday does not give the agency any new powers, it clears the way for it to begin what is expected to be more aggressive pursuit of private lenders and servicers." or something like that? dl
The bureau will look into whether private lenders and servicers comply with a range of federal lending laws, including the Truth in Lending Act, which went into effect in 2009 and required additional disclosures for private student loans, as well as lenders' marketing and underwriting standards. The procedures mention servicing issues for borrowers trying to enroll in federal programs that allow borrowers to make income-based repayments, as well as laws governing lending to active-duty members of the military.
The bureau has focused on student loans (as well as mortgages, credit cards and other financial instruments) since it opened in summer 2011. In July, the bureau issued a sweeping report on private student loans that recommended Congress investigate restoring bankruptcy privileges for those loans. In October, the bureau's student loan ombudsman issued his own report on issues facing student borrowers.