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International Foundation for Higher Education

Friday, 24 May 2013
Going on this week in higher ed

Going on this week in higher ed (5)

Saturday, 24 September 2011 18:35

STUDENT DEBT: America's Next Bubble?

Written by Amanda Lankford

“I still have student loans,” David Guard, a graduate of Gettysburg College and American University, told Fox News recently, as lawmakers and the White House bickered over the debt ceiling. “I could see an increase in those interest rates.”

Tuesday, 16 November 2010 23:24

There’s More Than One Way to Apply to College

Written by Amanda Lankford
AS if college hopefuls didn’t have enough decisions to make, here’s one more: which application to use. Advances in digital technology have created competition for the Common Application, the pioneer of the one-app-fits-all concept, and so the ways to apply to college have multiplied in the last few years. There’s the upstartUniversal College Application, similar in format to the Common Application, and portals like Xap, Embark and ConnectEdu, which make it easier to use a college’s own application.

“The Common Application is common only among those participating institutions that use it,” says J. Michael Thompson, chief executive of Xap.

Each of the new systems promises time savings for harried students by allowing them to fill in personal and academic information just once. Typically, the software imports the data for the other colleges on a student’s list (students still have to complete institution-specific questions or supplements).

That automation is important because a third of fall 2009 freshmen applied to six or more colleges, and fewer and fewer apply using paper forms. Eighty percent applied online in 2009, up from 58 percent only three years earlier, according to the National Association for College Admission Counseling.

By expanding ways to apply, colleges can pull in applicants from outside established channels — to fill seats, help them shape a more diverse class and, of course, to look more selective by rejecting a larger number of students. “It’s never a good idea to be completely dependent on one supplier,” explains Christoph Guttentag, dean of admissions at Duke, which uses the Common Application, the Universal College Application and Xap.

The new, for-profit application providers recognize the potential money in encouraging students to apply to multiple schools. Colleges and universities pay, on average, about $5 for each completed application.

Students are on their own in deciding which application to use, as long as an institution accepts it (check its admissions page, or the application’s Web site).

How to choose? An alternative application might prove more efficient depending on objectives — Xap, for example, for students staying in-state, the Common Application for selective privates. The content of the forms is much the same, and all claim this: Their application gets equal consideration from admissions officers.

Tuesday, 16 November 2010 23:21

Scrutiny Takes Toll on For-Profit College Company

Written by Amanda Lankford
Stanley H. Kaplan started his tutoring business in the basement of his parents’ Brooklyn home in 1938. As standardized tests became a bigger fixture of American education, his company became a national operation, preparing millions of students for the SAT, LSAT, MCATs and other tests.

Kaplan was still a test-prep company when the Washington Post Companybought it in 1984, after Richard D. Simmons, the president, convincedKatharine Graham of its potential for expansion and profits.

Over the last decade, Kaplan has moved aggressively into for-profit higher education, acquiring 75 small colleges and starting the huge online Kaplan University. Now, Kaplan higher education revenues eclipse not only the test-prep operations, but all the rest of the Washington Post Company’s operations. And Kaplan’s revenue grew 9 percent during the last quarter to $743.3 million — with higher education revenues more than four times greater than those from test-prep — helping its parent company more than triple its profits.

But over the last few months, Kaplan and other for-profit education companies have come under intense scrutiny from Congress, amid growing concerns that the industry leaves too many students mired in debt, and with credentials that provide little help in finding jobs.

Reports of students who leave such schools with heavy debt, only to work in low-paying jobs, have prompted the Department of Education to propose regulations that would cut off federal financing to programs whose graduates have high debt-to-income ratios and low repayment rates.

Though Kaplan is not the largest in the industry, the Post Company chairman, Donald Graham, has emerged as the highest-profile defender of for-profit education.

Together, Kaplan and the Post Company spent $350,000 on lobbying in the third quarter of this year, more than any other higher-education company. And Mr. Graham has gone to Capitol Hill to argue against the regulations in private visits with lawmakers, the first time he has lobbied directly on a federal issue in a dozen years.

His newspaper, too, has editorialized against the regulations. Though it disclosed its conflict of interest, the newspaper said the regulations would limit students’ choices. “The aim of the regulations was to punish bad actors, but the effect is to punish institutions that serve poor students,” Mr. Graham said in an interview.

He said the regulations’ emphasis on debt would make it harder for Kaplan to serve older working students who must take out loans to attend school.

He added that Kaplan could play an important role in meeting President Obama’s goal of a better-educated work force. Kaplan Higher Ed, Mr. Graham said, has also broadened the reach of the Post Company — beyond the middle-income students who typically use its test-prep services — to include lower-income students.

“We purchased colleges that served mostly poor students, and we have embraced that role,” Mr. Graham said. “For students with risk factors, older working students with children, Kaplan has dramatically better graduation rates than community colleges.”

The company has acknowledged, however, that the new rules could hurt Kaplan. According to 2009 data released this summer by the Department of Education, only 28 percent of Kaplan’s students were repaying their student loans. That figure is well below the 45 percent threshold that most programs will need to remain fully eligible for the federal aid on which they rely. By comparison, 44 percent of students at the largest for-profit, the University of Phoenix, were repaying their loans.

Kaplan is facing several legal challenges. The Florida attorney general is investigating eight for-profit colleges, including Kaplan, for alleged misrepresentation of financial aid and deceptive practices regarding recruitment, enrollment, accreditation, placement and graduation rates.

Kaplan is also facing several federal whistle-blower lawsuits whose accusations dovetail with the findings of an undercover federal investigation of the for-profit industry this summer, including video of high-pressure recruiting and unrealistic salary promises.

“The claims they make are absurd and simply not reflective of the kind of company that Kaplan is,” said Andrew S. Rosen, Kaplan’s chairman. “We’re confident that when a court rules, we’ll have a clear demonstration that this is not who Kaplan is.”

Tuesday, 16 November 2010 23:10

London Tuition Hike Protests Turn Violent

Written by Amanda Lankford
LONDON — A demonstration against government proposals to cut education spending and steeply increase tuition for university students turned violent on Wednesday as protesters attempted to storm the building that houses the Conservative Party. Multimedia The protesters scuffled with police officers, set off flares, burned placards, threw eggs, bottles and other projectiles and shattered windows at the building, 30 Millbank, in Westminster. A small group of demonstrators, some of whose faces were obscured by ski masks, climbed to the roof of a nearby building, waving anarchist flags and chanting “Tory scum.” The protest was dispersed about 10 p.m. Fourteen people, including seven police officers, were injured, none of them seriously, the authorities said. Thirty-five people were arrested. An estimated 52,000 people from across the country also massed near Parliament on Wednesday to condemn the government’s education proposals, which would allow universities to charge £6,000, or $9,600, to £9,000, or $14,400, in tuition a year, up from a cap of £3,290, or $5,264. The protest was the largest street demonstration against the government’s plans, which were announced last month, to cut public spending by $130 billion by 2015. Unions and public employees have promised more demonstrations and strikes, particularly as details of the cuts become clear. Tuition is a politically sensitive subject in Britain, where universities are heavily subsidized by the government. Until the late 1990s, when the Labour government introduced tuition, students paid nothing to attend college. The current government, a coalition of Conservatives and Liberal Democrats that has ushered in an age of budget austerity, has announced plans to cut teaching grants to universities and said it had no choice but to raise tuition. That has presented a dilemma for Liberal Democrats — the more vulnerable members of the coalition — who made abolishing university tuition a core element of their platform in the general election last spring. Joining the Conservatives in proposing tuition increases has been hard for many Liberal Democrats. Their leader, Deputy Prime Minister Nick Clegg, was taunted Wednesday in the House of Commons by members of the opposition Labour Party. “In April he said that increasing tuition fees to £7,000 a year would be a disaster,” Harriet Harman, the deputy leader of the opposition, said of Mr. Clegg. “What word would he use to describe fees of £9,000?” Accusing him of “going along with Tory plans to shove the cost of higher education onto students and their families,” Ms. Harman told Mr. Clegg that he was like a college freshman who meets “a dodgy bloke” during the first week of classes “and you do things that you regret.” “Isn’t it true he has been led astray by the Tories?” she asked. Mr. Clegg responded that he had to make compromises as part of a coalition, and because the country’s finances had been left in such poor shape by the previous government. But, he said, he had prevailed on the Conservatives to make the proposals fairer and more progressive. Under the plan, students would borrow money from the government to pay tuition, as they do now. They would not start repaying the debt until they earned at least £21,000 a year (about $38,000 at current exchange rates), an increase from the current level of £15,000 ($24,100). They would then pay 9 percent of their income above that level to settle the debt. The debt would be wiped out after 30 years. Student leaders have made it a priority to denounce Liberal Democrats who support the higher tuition, and they said on Wednesday that they would try to recall any legislators who had broken their election promises on the issue. Some Liberal Democrats have said they would abstain from the vote to increase tuition when it comes up in Parliament. Aaron Porter, president of the National Union of Students, said the proposed increases were doubly unfair, since they were paired with cuts of about 40 percent in the money the government pays to subsidize teaching at universities. “We should be clear that the government has asked students to pay three times as much for a quality that is likely to be no better than what they are receiving now, and perhaps worse,” he said.

Dubai International Academic City (DIAC), the dedicated higher education free zone and a member of TECOM Investments Education Cluster, today announced over 300 students participated in the Gulf Youth Leadership Summit of AIESEC, the world's largest student-based association.