For-profit colleges

Another Change to 'Gainful Employment' Regs

Smart Title: 
Proposed rule would ease requirements for approval for new vocational programs.

Serving Soldiers?

Smart Title: 
The U.S. Senate is flirting with policies that could harm for-profit colleges' success with veterans and active-duty military students.

Online and Outsourced

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Recommendation to create Nevada Virtual College, 2-year college to be run by outside vendor, provokes backlash from faculty members and some administrators.

For-Profit Seal of Approval

Smart Title: 
A trade group has created standards of conduct for the industry, and a foundation to enforce them. But will enough key players sign on?

For-Profits and the False Claims Act

Smart Title: 
Developments in two whistleblower lawsuits raise prospect that commercial colleges could face more U.S. pressure in the courts.

For-Profit Debate Redux

Smart Title: 
Senate roundtable features continued criticism of the sector -- and continued pushback against more regulation.

Stepping Out

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With sector under continued attack, 20 for-profit colleges -- all regionally accredited -- seek to distinguish themselves with increased transparency.

Going After 'Gainful'

Smart Title: 

WASHINGTON -- Weeks after the U.S. Education Department issued softened regulations designed to ensure that vocational programs prepare graduates for "gainful employment," House Republicans made abundantly clear Friday that, in their view, the rules had not been eased nearly enough, and that they would continue to oppose them.

Targeting, or Serving, Needy Students?

Can we agree on this much?

That a large number of academically gifted and economically affluent students (or their parents) have become savvy consumers, getting their first two years of general education courses out of the way at low-cost community colleges rather than pricier state schools and liberal arts colleges?

That by doing so, these would-be competitive admissions students are taking up a large number of slots at community colleges that would otherwise be filled by less academically gifted or less economically affluent students?

That private nonprofit schools, meanwhile, are maintaining their competitive admissions edge by providing more merit-based tuition discounts rather than need-based tuition discounts? That by doing so, these schools become less and less of an option for those less fortunate?

And that, as the number of well-paying blue collar jobs shrinks in response to the changing nature of the economy, the American middle class must either contract, or the skills needed to gain and retain a well-paying job must somehow expand?

I hope we can find consensus around those points. Most people can at least agree on the connection between college education and well-paying jobs, and the need to up-skill the American workforce in order to defend a society in which the benefits of middle class living are widely shared and enjoyed. Most can also agree that higher education access is shrinking in response to a variety of external pressures, including state budget cuts to higher education and a more consumer-savvy insistence on tuition dollar value.

Now we reach the question where many people disagree. Do less well academically prepared, less affluent individuals deserve an opportunity to receive a higher education? And, if so, should they attend institutions best situated to respond to their particular academic, social and emotional needs, or should they be forced to accept whatever public school option may be available -- regardless of the institution’s track record in retaining and graduating students?

These are the questions at the heart of the current debate surrounding private sector colleges and universities (PSCUs). These institutions cost the student more to attend than a public school does, but, through generous subsidies, taxpayers pay the bulk of education costs at community colleges, not students. As a result, the absolute cost of postsecondary attendance is actually less at the private sector alternative. The Institute for Higher Education Policy recently issued a report about low-income adults in postsecondary education, noting -- as many in higher education have long been aware -- that a significant percentage of low income and minority students attend PSCUs and community colleges. From the perspective of our critics, PSCUs “target” these students while community colleges “serve” them.

Both types of institutions operate in what is largely an open admissions environment (although my own institution does not). Both serve the adult student, who is often financially independent. Both strive to provide students with an education that facilitates career-focused employment (although community colleges wear many other postsecondary hats as well). Both use advertising as well as word of mouth referrals to attract students. But many PSCU students have already attended a community college and opted out for various reasons, including the long waits to enter the most popular programs, large class sizes and inflexible schedules. These problems are all made worse by state budget cuts to higher education.

PSCU students do pay more out of their own pockets than do community college students, but PSCU students see the cost justified by what they receive in return. This value expresses itself in greater individual attention and support … in having confidence in academic skills restored where they may be flagging … in gaining new motivation to succeed and seeing that motivation reinforced through success itself ... and in making the connection between classroom learning and employable skills real and direct.

Two-year PSCU institutions graduate students at three times the rate of community colleges. Placement rates are the bottom line on career-focused education, however, and while community colleges offer lower-cost career programs without outcome metrics, PSCUs must match their career education offerings with real placement of students in relevant jobs. Again, PSCU students see this outcomes-based approach as a difference worth paying for.

In this broader context, the irony of PSCUs being accused of “targeting” students becomes clear. Apparently where some see targeting of low income and minority students unable to make informed decisions about their futures, we see tailoring of postsecondary education to suit a nontraditional student population -- and a better fit all around.

Author/s: 
Arthur Keiser
Author's email: 
newsroom@insidehighered.com

Arthur Keiser is chairman of the Association of Private Sector Colleges and Universities and chancellor of Keiser University.

A Better Way on Transfer of Credit

The higher education community has been engaged in a vigorous contest with policy makers (both in Congress and in the U.S. Department of Education) over whether universities should use accreditation status to determine decisions about whether to accept the academic credits of transferring students. Arrayed on the side of restrictive regulations are individuals in the U.S. Department of Education, select members of Congress, and the Career College Association, which represents proprietary schools -- all favoring new legislation and/or regulations prohibiting individual credit transfer decisions being determined “solely on the basis of accreditation.”

The institutions targeted by these proposed restrictions are those that deny credit transfer from postsecondary institutions accredited by entities other than the six recognized regional accreditors (e.g., Middle States Association of Colleges and Schools, Western Association of Schools and Colleges).

Opponents of the proposed legislation and regulations argue that the federal government should have no role in determining credit transfer decisions that historically -- and appropriately -- have been the responsibility of the faculty and, in some instances, states and their governing systems. The debate is fueled by heated monologues, anecdotal testimonials and campaign contributions.

At the core of this policy debate is the assumption that the type of accreditation held by the institution where a student was enrolled should not be the controlling influence on the decision to award credit by the receiving institution. I believe that assumption needs to be revisited.

It must be remembered that one of the reasons for the establishment of accreditation by geographical regions was precisely to provide assurance to accepting institutions that the credits earned at the “sending” institution were in fact “earned and comparable.” Within regions virtually all institutions offering academic coursework were known and a network of college officials worked together to make practical and usually fair transfer decisions.

The higher education world has changed dramatically in the past few decades. There has been a massive growth in student enrollments, with an increasing number transferring credits from several institutions. Whereas a quarter of a century ago a typical institution might have 200 credit transfer decisions in a given year, today that same institution, particularly if located where the population is growing, may have 2,000 such decisions. One Midwestern public university with over 12,000 students annually makes nearly 4,000 credit transfer decisions. The staff in admission and registrar offices have experienced only modest growth during this same period. As a result there are far fewer resources available to address credit transfer decisions.

This explosion in student numbers is but part of the problem. Equally problematic is the growth in the number of institutions offering higher education credits. The latest figures (2006) indicate there are 2,713 proprietary institutions eligible for federal Title IV Funds, most marketing themselves as “accredited” with their accrediting agency recognized by the United States Department of Education. Just over half of these are less than two-year institutions, many offering freshmen “equivalent” courses.

Federal student aid policies, particularly those grossly expanding “guaranteed student loan” programs, have significantly contributed to growth in the proprietary sector. Recent changes in educational benefit programs for active duty military personnel have likewise contributed to the creation of institutions seeking to serve military personnel. From 2000 to 2006 the number of proprietary institutions offering baccalaureate degrees increased over 50 percent, from 274 to 429. Our sympathies should flow to registrars and admission offices flooded with transfer requests and at times confronted with transcripts from distant institutions whose names are hardly recognizable.

I would argue the opposite of the position now being made by policy makers and their patrons: Accreditation status, especially that conferred by established regional accrediting groups, should be a key part of the decision-making process by which institutional officials make credit transfer decisions.

Where institutions not regionally accredited are known to registrars it makes eminently good sense that they would make credit decisions based on what they know: articulation agreements, the experience of earlier transfer students, and the Transfer Credit Practices database used by the American Association of Collegiate Registrars and Admissions Officers. But for distant, recently created and even suspect institutions not well known to registrars and admission officers, credit transfer decisions based solely on the absence of regional accreditation status are reasonable and justified. Institutional accreditation by the six regional associations remains the most thorough and reliable of all accrediting efforts. It is also a process historically resistant to political and financial influence.

Does such a position unfairly discriminate against proprietary institutions? Not necessarily. The most recent data available (2004) indicate that 165 of the then 375 four-year proprietary institutions (or 44 percent) had earned regional accreditation. In short, a large number of those proprietary institutions meet the same standards as do independent and public colleges and universities and for them credit transfer would be handled on comparable bases. The remaining proprietary institutions would better serve their students by likewise pursuing and achieving accreditation from one of the six regional accrediting entities, rather than marketing a narrow peer accrediting status (often called “national accreditation”) and seeking governmental intrusion in the accrediting process.

The public interest would be better served if policy makers, rather than berating credit transfer decisions or proposing “federalizing” transcript evaluations, would, instead, support the work of regional accrediting agencies. Moreover, policy makers should question complaining institutions about why they have not earned regional accreditation as have a significant proportion of their proprietary counterparts.

Author/s: 
Constantine W. Curris
Author's email: 
newsroom@insidehighered.com

Constantine W. Curris is president of the American Association of State Colleges and Universities.

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