Nonprofit high education in the United States (known as non-profit college or exclusive education in some instances) refers to institutions of higher education operated by private businesses , looking for profits. Historically, most US colleges and universities have been nonprofit, but nonprofits quickly grew in size and size from 1972 to 2009. This also includes certain culinary and vocational schools. Although non-profit educational advocates argue that profit motives drive efficiency, the nonprofit education industry has received severe negative criticisms due to its sales techniques, high costs, and poor student outcomes. In some cases, nonprofit college operators have faced criminal charges or other legal sanctions.
Since 2010, nonprofit colleges have received greater scrutiny and negative attention from the US government, state Attorney General, media, and scholars. However, Donald Trump's administration and Education Secretary Betsy DeVos have accused the government of exceeding regulatory limits and have loosened the rules.
In 2016, research by finance ministry economist Nicholas Turner and George Washington University economist Stephanie Riegg Cellini found that students attending nonprofit colleges would be better not to go to college at all, or attend college (non-profit); In other words, nonprofit colleges make students worse off than when they started. The National Bureau of Economic Research document is based on an analysis of 567,000 students attending nonprofit colleges from 2006 to 2008. More than 80% of student loans are borrowed.
The Veterans Affairs Department also reported that veterans using GI Bill for education filed more complaints about nonprofit colleges, especially the Phoenix University, ITT Engineering Institute, Devry University, and Colorado Technical University, rather than their public or private nonprofit agencies. colleagues.
According to the National Center for Education Statistics, the failure rate of 12-year student loans for non-profit colleges is 52 percent. The failure rate of 12-year student loans for African Americans who will seek profit is 65.7 percent.
The advocacy group, Debt Collective, has created an unofficial "Defense to Repayment App" that allows former school students accused of fraud to pursue debt cancellation. Applications generated through the online form of Debt Collective are cited by the Ministry of Education in the Federal Register notification, which says that "the need for a clearer process for potential claimants" arose because of the submission of more than 1000 defenses for payment claims with "a debt activism movement.
Video For-profit higher education in the United States
List of non-profit companies and their brands
According to the National Center for Education Statistics, there are about 3,200 nonprofits in the US by 2015.
Many nonprofits are subsidiaries of large corporations. The following is a list of nonprofit companies in the higher education sector:
- Adtalem Global Education (formerly DeVry)
- Apollo Education Group (a subsidiary of Apollo Global Management)
- American Public Education
- Bridgepoint Education
- Capella Education
- Career Education Corporation (including Colorado Technical University and American Intercontinental University)
- Center of Excellence in Higher Education
- Connections Academy (Pearson Education subsidiary)
- Education Affiliation
- Education Corporation of America (including Virginia College and Brightwood College)
- Education Management Board
- The Global University System
- Graham Holdings
- International Education Company
- K12
- Laureate Education
- Lincoln Group of Schools
- Linden Education Group
- Palm Ventures
- Premier Education Group
- Quad Partner
- Strategic Education (Merger Strayer and Capella)
- Universal Technical Institute
Laureate Education and Apollo Education Group have become powerful international education companies. Apollo Education Group is now part of Apollo Global Management.
Laureate, the largest US-based high-profit educator, reportedly has more than one million students worldwide, in North America, Latin America, Europe, Middle East, Africa and Asia Pacific. Former President of the United States Bill Clinton has become honorary Chancellor of a non-profit corporation.
Maps For-profit higher education in the United States
Politics and political lobby
Politics and lobbying play an important role in the history of the growth of US nonprofit schools. The nonprofit education industry has spent over $ 40 million to lobby since 2007 and $ 36 million since 2010.
The nonprofit education lobbyist grew from $ 83,000 in 1990 to about $ 4.5 million in the 2012 peak year.
The most significant industry lobby is the Career Education Colleges and Universities (CECU), formerly known as the Association of Colleges and Private Universities (ASPCU). Prior to 2010, the organization was known as the College of Career Associations.
The Education Freedom Center of the Cato Institute also supports nonprofit higher education.
Political cooperatives closely related to non-profit education include Bill Clinton, Lanny Davis, Heather Podesta, Urban League President Marc Morial, former assistant to Ted Kennedy Jane Oates, former Defense Secretary Leon Panetta, and civil rights activist for the National Action Network Al Sharpton. In 2014, APSCU employs Michael Dakduk, the former head of the American Veteran Student.
From 2010 to 2015, Bill Clinton received at least $ 17.5 million from Laureate Education, the holding company of Walden University.
In March 2017, Education Secretary Betsy DeVos appointed Robert Eitel, former Career Education Corporation and Bridgepoint executive, as a special adviser.
Recruiting, advertise and lead generators
The nonprofit college industry has spent billions of dollars hiring students, advertising, and buying referrals for hiring. In 2011, for example, the University of Phoenix, ITT Tech, Devry, and Capella jointly spent over $ 100,000,000 on Google Ads. Some Wall Street-supported schools spend a lot of money on advertising during the day and late night television. In 2012, Apollo Group, the holding company of the University of Phoenix, reportedly spent $ 665 million on advertising and marketing. Lead Generator is a company that finds potential students ("prospects") and provides personal information and consumer preferences to nonprofit schools.
History of nonprofit higher education
Origins
Nonprofit colleges in the US have their origins in the Colonial Era.
1940s to mid 2000s
In the 1940s commercial schools of â € Å"terbang-by-nightâ € commercial schools often emerged to raise grant funds for veterans due to the requirements of the newly created GI Bill and limited supervision to prevent such violations.
The nonprofit academy grew significantly from 1972 to 1976, after the Higher Education Act of 1965, part of the "Great Reform" reform of President Lyndon Johnson, was changed so that nonprofit colleges could receive US government funding, to include Pell Grants and federal student loans.
From 1974 to 1986, the division of Pell Grants nonprofit colleges rose from 7 percent to 21 percent, although nonprofit colleges only enroll 5 percent of all students of higher education.
In the late 1980s, Education Minister William Bennett hired an outside company, Pelavin and Associates, to investigate issues with nonprofit higher education. The researchers found widespread abuses throughout the industry.
From 1989 to mid-1990s, Stephen Blair, a former Department of Education official, led an aggressive lobbying campaign of the nonprofit industry in Washington, DC. Blair raise funds to combat the Pelavin report and maintain a nonprofit education position. Blair also recruited politicians Bob Beckel, Patty Sullivan, and Haley Barbour to sell their struggle to the Democratic and Republican Party.
1992, the Higher Education Act was amended to include rule 85-15, which limits federal funding to 85 percent of school funding. Proponents of the 85-15 rule argue that such action is necessary to stem fraudulent and abusive practices at nonprofit colleges, and that may restore market incentives to education. At that time, the former Career College Association's Patrick Sullivan estimates that 35 or 40 percent of nonprofit colleges are involved in fraud.
In 1993, the 85-15 rule was suspended after a complaint was filed with the Department of Education.
In 1994, the US House of Representatives voted to allow a one-year delay in regulations scheduled to stop federal student assistance for many trading schools. Tony Calandro, vice president of government affairs for the Career College Association (CCA), said that enforcing the 85-15 rule would force 30 percent of 4,000 national private trading schools to close.
The registration of nonprofit universities grew again between 1998 and 2009, after the 1998 reauthorization of the Higher Education Act resulted in more deregulation. Education Secretary Richard W. Riley also appointed former College Care Associate President Stephen J. Blair as Liaison for Institutional Agencies.
The nonprofit education industry also grew amidst the state budget cuts, stagnation, and savings in higher education funding that were becoming increasingly visible in the 1980s and 1990s.
Behind the deregulation and growth of nonprofit colleges, Devry's initial public offering, the ITT Education Service, the Apollo Education Group, the Corinthian Academy, and the Career Education Corporation occurred between 1991 and 1998. Nonprofit colleges have become "darling of Wall Street."
According to the US Department of Education, the number of nonprofit colleges increased from about 200 in 1986 to nearly 1000 in 2007. From 1990 to 2009, nonprofit colleges gained significant place over state universities, growing to 11.8 percent of all college student.
From the late 1980s to the mid-1990s, Senator Sam Nunn led for further examination of nonprofit colleges. The Public Accounting Firm also found that 135 nonprofit colleges accounted for 54% of all student loans.
In 2005, Inspector General of the Department of Education John B. Higgins reported that 74% of all investigations of institutional misappropriation are nonprofit colleges.
The Los Angeles Times briefly describes the role of Wall Street money in the growth of nonprofit colleges. The increase in nonprofit college capitalization occurred after banks such as Goldman Sachs and Wells Fargo and investment and hedge fund companies like Blum Capital Partners and Warburg Pincus became big institutional investors in the industry.
The late 2000s and beyond
Nonprofit school enrollment reached its peak in 2009 and showed a substantial decline in 2011. Two companies, Corinthian Colleges and Education Management Corporation face major registration and financial downturns in 2014 and 2015; Corinthian is out of business (closed) and Education Management has closed many campuses. The University of Phoenix, a subsidiary of the Apollo Group, has also seen more than a 50% drop in registrations since its peak.
According to the Harkin 2012 Report and the NY Times, students at nonprofit colleges make "13 percent of state college enrollments, but account for about 47 percent of bad loans." About 96 percent of students in nonprofit schools take out loans, compared to about 13 percent in college and 48 percent at a four-year state university. "In October 2017, Strayer and Capella agreed to join as Strategic Education.
A 2014 report by The Institute for College Access and Success suggests that the possibility of a student failing to pay is three times more likely in a nonprofit college than a four-year state or non-profit college and almost four times more likely than the college community.
According to data provided by universities and universities to the National Center for Education Statistics, enrollment in nonprofits decreased by 21% between 2010 and 2013. Enrollment of students decreased by an additional 10% from 2014 to 2015. More than 200 nonprofit college campuses and sites learning has been closed since 2012, including more than 100 campuses of the University of Phoenix and most of Everest College's campuses.
In 2015, the Corinthian Academy filed for bankruptcy and all of his College Heald Colleges were closed. By 2016, all Westwood College campuses are closed. Le Cordon Bleu is also in the process of closing all its campuses. ITT Technical Institute and Devry also closed some campuses.
In 2016, The Wall Street Journal reported that more than 180 non-profit campus campuses have been closed between 2014 and 2016. Non-profit college registrations fell by about 15% by 2016, a 165,000 decrease. Enrollment at the University of Phoenix chain is down 22%, which is a 70% loss since 2010. DeVry University reports 23% percent by 2016. Hondros College, a chain of nursing schools, fell 14%. In June 2016, Education Management announced that it plans to close all 25 campuses of Brown Mackie College. In September 2016, ITT Technical Institute closed all its campuses. In September 2016, the US Department of Education abandoned the ACICS from its accreditation powers.
By 2017, all Cordon Bleu schools are expected to close. At least 19 Art Institutes are also expected to be closed. Education Management Corporation sells the rest of its schools to the Nonprofit Dream Foundation and Purdue University proposes the purchase of Kaplan University. Atalem also sells the declining DeVry University and Keller School of Management to Cogswell Education, a division of Palm Ventures.
In 2018, the State Failed documentary films recorded booms and busts from nonprofit colleges, highlighting the offenses that led to their downfall.
Nonprofit education structure
Source of capital and cash flow
The main source of start-up capital for non-profit state universities is institutional investors: international banks, hedge funds, institutional pensions, and state pensions.
Wells Fargo is a major funder at Corinthian Colleges and Goldman Sachs provides a large amount of capital to Education Management Corporation.
The main sources of cash flow consist of the US Department of Education's Higher Education Act Title IV fund. The Title IV fund includes Federal Family Education Loans (FFEL), direct loans, Federal Perkins Loans, Federal PG Grants, Academic Grants Competitiveness (ACG), National Grants Fund, Federal Supplementary Education Opportunity Grant (FSEOG), and Federal Employment Study (FWS )). In the 1990s, Congress began demanding that nonprofit schools receive at least 10% of their income from non-federal student assistance sources, which included GI Bill.
In the 2009-2010 academic year, nonprofit higher education companies received $ 32 billion in Title IV funding - more than 20% of all federal aid. Nonprofit academies get about 70% of their funds from the Title IV program. However, some colleges get more than 80% of their funds from Title IV.
The nonprofit education industry also received billions of dollars through VA benefits also known as GI Bill. In the 2010-2011 school year, more than $ 1 billion went to eight nonprofit schools. In the academic year 2012-2013, 31 percent of GI Bill's funds go to nonprofit colleges. Veteran participation in these schools, in effect, transferred $ 1.7 billion in post-9/11 GI funds to these schools.
These companies also get cash flows through student personal loans, corporate loans, and asset sales. Problems with high-interest personal loans to students at Corinthian Colleges (Genesis loans) and ITT Tech (PEAKS and CUSO loans) have gained the spotlight from the Consumer Finance Bureau of Consumer and Securities and Exchange Commission.
Benefits
Historically, nonprofit education has offered open acceptance to non-traditional students, leisure schedules and locations, instructors with workplace knowledge, and real-world vocational training rather than traditional training. Critics of non-profit Wall Street educators who are supported, however, have questioned this perceived benefit.
Nonprofit schools like the University of Phoenix are said to be more inclusive, recruiting and finishing more African-Americans than public higher education. The Journal of Blacks in Higher Education calls the Phoenix University "a pillar of African-American higher education." Through Thurgood Marshall funds, students at 47 publicly-supported colleges and universities, can add to the burden of coursework on their campus with course programs using the Phoenix University online platform.
The nonprofit academy has also been seen as a second chance for students who have performed poorly in the past.
It can be argued that nonprofit colleges also create innovations that will force public higher education to be more responsive to student needs
Nonprofit colleges have been compared to community colleges in terms of graduation rates, but this comparison may offer a misleading statistic comparison
Weakness
A 2010 report by the Government Accountability Office (GAO) documents the misleading sales and marketing tactics used by some of the advantages. Critics also point out that more than half of nonprofit income is spent on the market or extracted as profit, with less than half spent on instruction.
A 2011 study by the National Bureau of Economic Research, in Cambridge, Massachusetts, reports that students attending nonprofit educational institutions are more likely to be unemployed, low-income, have higher debt levels, and are more likely to fail in their students. loans from similar students in nonprofit educational institutions. Although the benefits typically serve poorer or more likely to be minority students, these differences do not explain differences in employment, income, debt levels, and student loan failures. The Government Accountability Office also found that nonprofit graduates tend not to pass the licensing exam, and poor student performance can not be explained by student demographics.
Investigation 2011 by The New York Times suggests that nonprofit higher education institutions typically have a much higher rate of student loan failure than nonprofits. Two documentary films by Frontline have focused on alleged infringement in for higher education earnings.
Compared to community colleges, some benefits may have higher completion rates for certificate and associate degree programs, but higher drop out rates for a four-year college degree. However, research shows that one-and-two-year programs often do not provide many economic benefits to students because the drive for wages is offset by an increase in debt. In contrast, the four-year program provides substantial economic benefits.
Untung has been sued for allegedly using aggressive and deceptive sales and marketing practices. Holly Petraeus, a high-ranking official at the Consumer Financial Protection Bureau, has accused the profits to prey on vulnerable military personnel. Petraeus writes:
- "This gives nonprofit colleges an incentive to view service members as nothing more than uniform dollar signs, and uses aggressive marketing to pull them in and take out personal loans... One of the most egregious marketing reports in question involves college recruiters who visited Marines in Camp Lejeune, North Carolina.. As reported by the PBS program Frontline, recruiters signed the Marines with serious brain injuries The fact that some of them can not remember what course they are take no material, as long as they sign the dashed line. "
Opponents say that the basic purpose of educational institutions must be to educate, not to make a profit. In 2000, Bob Chase, president of the National Education Association, stated that "educating children is very different from producing a product".
Certain postsecondary education programs at higher education institutions are eligible to participate in federal student assistance programs, known as Title IV of the US Higher Education Act (HEA). These programs, offered by public and private nonprofit agencies, postsecondary vocational institutions, and by nonprofit rights organizations, must prepare students for a lucrative job. For decades, the US Department of Education (ED) has not yet established a rule that explicitly outlines what it means for the program to prepare students appropriately for a profitable job. Due to urgent concerns about the quality of programs in nonprofit institutions beginning to emerge, concerns about the rate of student loan debt are assumed by students as well. Such issues lead to new initiatives and rules that must be set out to outline the parameters for what should be mandated to help ensure profitable work.
The 2011 Senate HELP Committee released data showing one in every four students enrolled in school of luck on their loans within three years of leaving, with nonprofit students accounting for nearly half of all bad loans. Most nonprofit colleges charge higher tuition fees than analog programs in public universities and state universities even though credit seems ineligible to be transferred to other institutions. In fact, 96% of students attending nonprofit college apply for federal student loans compared to 13% in college. During the 2009-2010 school year, nonprofit colleges received nearly $ 32 billion in grants and loans granted to students under the federal student assistance program. This staggering number means that almost all students in nonprofit institutions obtain student loan debt, even when they do not get the end product of the degree or accumulate increased income power through their studies (Session, 2011). These statistics represent most of the profits, expressing a serious need for greater accountability in ensuring students make good investments in these institutions.
According to the Government Accountability Office, enrollment in these institutions has increased more rapidly than traditional higher education institutions in recent years. With student and federal interest in such programs grow, so does their productivity. Unfortunately, this is not an easy problem to overcome, because the issues are multidimensional. Nonprofits have become an increasingly visible part of the US higher education sector. Fortunately it also gained the largest percentage of their overall income from federal student assistance programs, highlighting potentially useless tax dollars efficiently.
Federal federal regulations by ED have sought to address this issue in Title IV of the Higher Education Act of 1965, as amended. This effort is highly controversial. Nonprofits argue that their sectors are unfairly targeted and believe the Ministry of Education has stepped beyond the limit in 2010 by implementing regulations that set requirements for Useful Jobs. The rules outlined in the report by the Congressional Research Service (CRS), aim to demand profitability by creating standards that must be upheld and followed, which in turn will create more opportunities for employment among registrants. Through this rule, ED believes that agencies will strengthen their education programs to meet these higher standards, and relatively few programs will fail. Programs that offer useful education at a reasonable price will work, and institutions will continue to innovate to help students and taxpayers.
The rules mandated by the ED are to help regulate the nonprofit sector and to combat profitable employment issues. However, the Association of Colleges and Private Sector Universities, who support for -profits, oppose this rule in court. On June 30, 2012, the US District Court for the District of Columbia decided to vacate most aspects of the regulation. The court believes that ED has the authority to organize profitable work, but he says that the ED does not provide metrics or rational measures in debt measures. Currently, only disclosure requirements to provide prospective students with placement rates, at graduation rates and other similar information remain. On March 19, 2013, the judge resolved in response to the ED movement to restore the reporting requirements in order to apply the Disclosure requirements of the Employment Benefits. The judges denied the motion of the ED on the grounds that the reporting requirement would violate the federal ban on the student unit record system. It is highly contested that the court's verdict negates a small amount of transparency and accountability mandated by the disclosure requirements, leaving the policy issue to profit-making responsible for Unsupported Useful Employment.
Some former students claim that nonprofit colleges make them feel like they go to a flea market and buy their own titles.
According to James G. Andrews of the American Association of University Professors, corporate education models jeopardize the mission of education.
Some critics call nonprofit education "sub-prime education", in an analogy to the subprime mortgage bubble in the heart of the Great Recession - finding unknowing borrowers and burdening them with debts they can not afford, then securing and passing on loans to third- party investors. Short seller activist Steve Eisman (famous for being a character in Michael Lewis's Big Short ) has described the accreditation situation about profits like ITT as follows: "The scandal here is exactly the same as the role rating agency in subprime securitization."
A two-year congressional investigative report - from a committee headed by Senator Tom Harkin, D-Iowa - checks the enrollment rate at selected nonprofit institutions. The committee found that $ 32 billion in federal funds was spent in 2009-2010 at nonprofit colleges. The majority of students enrolled in the institution leave without a degree and carry post-school debt. Regarding dropout rates, the report says 54% of students in bachelor degree programs drop out before completing the degree and 63% of students in associate degree courses are dropped out.
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Accreditation and transfer-credit
Many nonprofit higher education institutions have national accreditation rather than regional accreditation. Regional accredited schools are dominated by academically oriented nonprofit institutions. National accredited schools are predominantly profitable and offer vocational, career, or technical programs. Most of the regionally accredited schools will not receive transfer credits received at accredited national schools because, except for some special areas such as nursing, regional accreditation standards are higher than national accreditation.
In the 2005 congressional discussion on the re-authorization of the Higher Education Act and the Secretary of Education of the United States Commission on the Future of Higher Education , there was a proposal, which ultimately did not work, to mandate that regional accrediting agencies prohibit schools -their accreditation of the decision based on whether or not to receive credit for the transfer solely
Some nonprofit schools have received regional accreditation, including American InterContinental University, American Public University System, Capella University, DeVry University, Kaplan University, American National University, Post University, San Joaquin Valley College, Strayer University, Phoenix University, Universal Technical Institute, and Walden University.
Accreditation bodies have obtained several checks and critiques of conflicts of interest. Because these institutions receive their funding from the agency itself, they may have an interest in not aggressively monitoring this nonprofit college.
According to Chris Kirkham and Kevin Short: "Two accrediting bodies... collectively monitor nearly 60 percent of all American colleges looking for profit, they lead almost half of those schools with the worst student loan failure rate... Ten of the 15 council members who oversee the ACICS are taken from the industry, including executives from Corinthian, Education Corporation of America and ITT Technical Institute.On the ACCSC board, industry executives fill eight out of 13 slots, representing public companies such as Universal Technical Institute and Kaplan Higher Education.
In 2016, 12 Public Defenders asked the US Department of Education to stop renewing ACICS, the Accreditation Board for High Schools and Independent Schools
In June 2016, the Ministry of Education discusses the fate of the ACICS and its powers to accredit schools for the IV titled government funds. On June 23, 2016, the National Advisory Committee on Institutional Quality and Integrity (NACIQI) voted to withdraw the power of ACICS to accredit schools.
Business failure
Major failures include Corinthian Colleges, ITT Technical Institute, and Education Management Corporation. In 2010, Trump University was closed by the State of New York to operate without a license. By 2014, FastTrain colleges are closed after being invaded by the FBI. By 2016, all campuses at Westwood College are closed.
In 2016, the US Department of Education abandoned ACICS, ITT Tech accredited and many more colleges, from its accreditation powers.
Government sponsorship, criminal and civil investigations
According to A.J. Angulo, a nonprofit high education in the US has been the subject of government oversight from the mid-1980s to the 2010s.
Untung topped the Education Department list for the 2005-2007 cohort default rate, with campuses at ATI and Kaplan reporting a default rate well above 20%. Most of the nonprofit expansion has been in the states of California, Arizona, Texas and Florida, with the metro areas of Los Angeles, Phoenix, Dallas and Miami-West Palm Beach becoming their growth centers. By comparison, in Miami, the Everest Institute reported failure rates for two campuses to 18% and 20%; Miami Dade College, the community college in this district, which serves as the main channel for local novice students, reports a failure rate of about 10%; Florida International University, a state university serving the Miami metropolitan area, reports about 5%.
In August 2010, the Government Accountability Office reported an investigation that randomly sampled the student recruitment practices of some nonprofit institutions. Students acting as prospective students document deceptive hiring practices, including misleading information about future costs and earning potential. They also reported that some recruiters have urged them to provide false information about the application for financial aid. Of the fifteen samples, all were found to be engaged in fraudulent practices, inappropriate to promise unrealistic high salaries for graduate students, and four engaged in direct fraud, per GAO report released at the hearing of the Committee on Health, Education, Labor and Pensions held on 4 August 2010. Examples of errors include:
- offers commissions to admissions officers,
- using deceptive marketing tactics by refusing to disclose total tuition fees to prospective students before signing a binding agreement,
- lied about accreditation,
- encourages direct fraud by attracting students to take student loans even when the applicant has $ 250,000 in savings,
- promises extravagant, high pay which is impossible for students,
- failed to reveal passing numbers, and
- offers tuition fees equivalent to 9 months credit hours per year, when the total duration of the program is 12 months.
The four nonprofit colleges found to be involved in the practices of the fradulence are: Westech, California: Encourages undercover applicants by forging $ 250,000 in savings to falsely increase the number of dependents in a household to qualify for Pell Grant, and to take the maximum amount in student loans;
It was found that 14 out of 15 times, the tuition fees on the profit sample were more expensive than its public counterpart, and 11 out of 15 times, it was more expensive than the private partners. Examples of differences in full tuition fees per program include: $ 14,000 for a certificate in a nonprofit, when the same $ 500 diploma fees in public college; $ 38,000 for an Associate at a nonprofit, when comparable programs in public colleges spend $ 5,000; $ 61,000 for Bachelors in nonprofit agencies, compared to $ 36,000 for the same degree in public colleges. This is contrary to the claims of the International Education Corporation CEO Fardad Fateri on the lack of unusual recruitment practices and the "value" of profits in an IEC open letter to Congress, certificate tuition fees and associate degrees to 28 and 6 times more than the respective state universities -masing; Fateri writes, "Credit should be given to non-profit universities that have been able to convince sophisticated students and their parents to pay about $ 400,000.00 for a bachelor's degree that will rarely lead to an academically-related career." However, the most expensive college in the United States, Sarah Lawrence College in Bronxville, New York, has a tuition fee of $ 41,040 for fiscal year 2009, bringing a four-year undergraduate course tuition just over $ 160,000.
The institutions identified in the Committee meetings in relation to the GAO report count are:
- Phoenix University - Phoenix, Arizona
- Everest Institute - Mesa, Arizona
- Westech University - Victorville, Ontario, Moreno Valley, California
- Kaplan - Riverside, California
- Potomac College - Washington, D.C.
- Bennett Career Institute - Washington, D.C.
- Kaplan - Pembroke Pines, Florida
- College of Office Technology - Chicago, Illinois
- Argosy University - Chicago, Illinois
- The University of Phoenix - Philadelphia, Pennsylvania
- Anthem Institute - Springfield, Pennsylvania
- Westwood College - Dallas, Texas
- Everest Institute - Dallas, Texas
- ATI Career Training - Dallas, Texas
In 2010, students at nonprofits represent about 12% of all students, but receive about 25% of all Grants and Federal Pell loans. They are also responsible for about 44% of all student loans. The University of Phoenix topped this list with Pell Grant income of $ 656.9 million with second and third place owned by Everest Colleges at $ 256.6 million and Kaplan College at $ 202.1 million for fiscal year 2008-2009, respectively. In 2003, the Government Accountability Office report estimates that the overpayment of Pell Grants goes about 3% per year, amounting to approximately $ 300 million per year. Some universities that are the main beneficiaries of Pell Grants have low graduation rates, making students innocent, and many graduating alumni find it very difficult to find a profitable job. with their degree, lead several former students to accuse recruiters of being "duplicates", and bring to the serious question the effectiveness of giving Pell Grants and other Title IV funds to nonprofit colleges. The passing rate of the University of Phoenix is ​​15%. Strayer University, which reports its loan repayment rate to 55%, only has a 25% return rate, according to data released by the US Department of Education on Aug. 13, 2010. The low payout rate makes Strayer ineligible to receive further. Title IV of funds in accordance with the "new work" regulations issued by the Ministry of Education, which will take effect in July 2011. If graduated, the minimum loan payment requirement for any institution receiving Title IV fund, subject to suspension and expulsion if inappropriate, will to 45%.
In 4 August 2010 Health, Education, Labor and Pensions The hearing committee, Gregory Kutz of GAO stated that fraudulent practices could be widespread in the Untung industry, noting the Phoenix University executive charts that encourage fraudulent practices. Joshua Pruyn, a former admissions representative, revealed to a committee that listened to several internal emails distributed among admissions officers in March 2008 that encouraged applications and registration through the use of a commission award system. During the congressional hearing to present the report, Pruyn's testimony was not proven by the recording of the conversation, and it was reported that Pruyn's comments were written by lawyers demanding Westwood, and were not properly trained by Senator Thomas Harkin's chief of staff committee who held the hearing. Senator Harkin notes a conflict of interest because ACCSC, the national accrediting institution that accredits many national nonprofit colleges, receives direct compensation from the accrediting agency. The Inspector General issued an assessment at the end of 2009 recommending the limitation and possible termination or expulsion of the High Learning Commission of the Association of North Central Colleges and Schools due to conflicts in the way in which the accrediting agencies reviewed credit hours and the length of programs for online-collegues, in particular American InterContinental University, a nonprofit college. The NCA HLC accredits the University of Phoenix and Everest in Phoenix, Arizona.
On 30 November 2010, GAO released a revised report, softening some examples of undercover investigation and altering key parts, but stood up with the main findings that college has encouraged fraud and potential misleading suitors.
In 2014, criminal investigations against the Corinthian College began.
Until 2015, the US Attorney General and at least eleven states retained a $ 11 billion lawsuit against the Education Management Board. The US Consumer Protection Bureau also has a lawsuit against ITT Educational Services, ITT Tech's parent company. In 2016, Alejandro Amor, founder of FastTrain, was sentenced to eight years in federal prison for fraud.
Attempts to regulate and deregulate industry
The US Department of Education (DoED) has proposed regulations, "favorable job regulations", which will provide more transparency and accountability to institutions offering professional and technical training. According to DoED, this rule is an attempt to "protect borrowers and taxpayers."
In its 2015 budget proposal, President Obama recommends greater regulation for nonprofit education, including the closing of loopholes that free GI Bill money from those used in the 90-10 formula.
In 2017, the US Department of Education held a public hearing was held to determine whether the government had violated regulatory efforts, primarily by obtaining employment and a favorable defense against the repayment rule.
In August 2017, Education Secretary Betsy DeVos instituted a policy to loosen regulations in nonprofit colleges.
In September 2017, the Trump Administration proposed to remove conflict of interest rules between VA officials and nonprofit colleges.
Non-profit campus lobbyers promoting deregulation
Lobbyists for the nonprofit higher education industry have taken several steps to break regulations and to fight transparency and accountability. They also support at least two lawsuits to address favorable job regulations.
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Non-profit academy transitioning to nonprofit college
At least three colleges or universities have switched to nonprofit status: Keizer University, Remington College, and Herzing University. Journalists argue that this transition is a strategy to reduce state and federal regulations and to obtain more Title IV funds.
By 2014, Grand Canyon University is considered a transition to a nonprofit status. In March 2016, the Grand Canyon regional accreditation body, the Higher Learning Commission, formally rejected the university's request for conversion to nonprofit status. The board of directors of the commission states that schools do not meet the five criteria for "such conversions".
In 2018, Grand Canyon University and Ashford University petition for nonprofit status.
See also
- List of universities and non-profit colleges
- Business university
- University career
- Diploma Override
- List of unaccredited higher education institutions
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