Amanda Lankford
is the founder of International Foundation for Higher Education
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STUDENT DEBT: America's Next Bubble?
Saturday, 24 September 2011 18:35 Published in Going on this week in higher ed“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.”
There’s More Than One Way to Apply to College
Tuesday, 16 November 2010 23:24 Published in Going on this week in higher ed“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.
Scrutiny Takes Toll on For-Profit College Company
Tuesday, 16 November 2010 23:21 Published in Going on this week in higher edKaplan 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.”
London Tuition Hike Protests Turn Violent
Tuesday, 16 November 2010 23:10 Published in Going on this week in higher edDubai International Academic City supports AIESEC Gulf Youth Leadership Summit
Tuesday, 16 November 2010 11:57 Published in Going on this week in higher ed
