By JOSEPH E. STIGLITZ
MAY 12, 2013 9:09 PM May 12, 2013
A CERTAIN drama has become familiar in the United States (and some other advanced industrialized countries): Bankers encourage people to borrow beyond their means, preying especially on those who are financially unsophisticated. They use their political influence to get favorable treatment of one form or another. Debts mount. Journalists record the human toll. Then comes bewilderment: How could we let this happen again? Officials promise to fix things. Something is done about the most egregious abuses. People move on, reassured that the crisis has abated, but suspecting that it will recur soon.
Senate Floor Speech on For-Profit Colleges and Universities 07/03/2013
STACY COWLEY and PATRICIA COHENJUNE 14, 2017
The Trump administration is formally reconsidering — and may dismantle — two new rules that were a cornerstone of the Obama administration’s crackdown on predatory for-profit colleges.
The announcement by the Education Department on Wednesday freezes changes that would speed up and expand a system for erasing the federal loan debt of student borrowers who were cheated by colleges that acted fraudulently. It also throws into limbo what is known as the gainful employment mandate, which cuts off loans to colleges if their graduates do not earn enough money to pay off their student debt. Continue reading
Gail Collins OCT. 27, 2017
Perhaps you’re wondering how Betsy DeVos is doing.
Or maybe not, unless you’re planning to go to a Halloween party dressed as the secretary of education.
DeVos is the superrich Republican donor who once led a crusade to reform troubled Michigan public schools by turning them into truly terrible private ones. Now she’s in the Trump cabinet, and she seems to be dedicating a lot of her time to, um, lowering higher education. Continue reading
We Will Keep Suing.’ 17 States Slam Betsy DeVos for Blocking Rules on For-Profit Colleges
By Katie Reilly
October 18, 2017
Education Secretary Betsy DeVos speaks at the Harvard University John F. Kennedy Jr. Forum on “A Conversation On Empowering Parents” moderated by Paul Peterson on Sept. 28, 2017 in Cambridge, Massachusetts.
Democratic attorneys general in 17 states and the District of Columbia filed a lawsuit Tuesday against Education Secretary Betsy DeVos over the department’s decision to block Obama-era protections for students attending for-profit colleges. Continue reading
Betsy DeVos Accused Students Who Were Defrauded by For-Profit Colleges of Wanting “Free Money”
BY JACK MOORE
September 26, 2017
Betsy DeVos must love negative attention. You see, usually the secretary of education, though an important position, isn’t an incredibly public one. I mean, sure, we all knew Arne Duncan played basketball, and were aware of his major policy initiatives (Race to the Top, for example), but it’s not like every few days we’d get headlines about all of Arne Duncan’s controversial comments. But obviously we are very far from usual times, and Betsy DeVos is far from a usual secretary of education. So far, during her time in the office, she has repeatedly worked to make it more difficult for people to pay back their student loans, rolled back Obama-era policies that strove to fight campus rape, and defended the rights of shady for-profit colleges that rip off students. Because nothing says “coherent education policy” like “constantly screwing over students.” Her latest disaster fits right in with all of her other terrible disasters. Continue reading
Trump and DeVos fuel a for-profit college comeback
Scrutiny of fraud fades as feds go lax on an industry that Obama targeted.
By MICHAEL STRATFORD
08/31/2017 04:58 AM EDT
For-profit colleges are winning their battle to dismantle Obama-era restrictions as Education Secretary Betsy DeVos rolls back regulations, grants reprieves to schools at risk of losing their federal funding and stocks her agency with industry insiders.
More than seven months into the Trump administration, DeVos has:
- Moved to gut two major Obama-era regulations reviled by the industry that would have cut off funding to low-performing programs and made it easier for defrauded students to wipe out their loans;
- Appointed a former for-profit college official, Julian Schmoke Jr., to lead the team charged with policing fraud in higher education — one of a slew of industry insiders installed in key positions. Schmoke is a former dean at DeVry University, whose parent company agreed last year to pay $100 million to resolve allegationsthe company misled students about their job and salary prospects;
- Stopped approving new student-fraud claims brought against for-profit schools. The Education Department has a backlog of more than 65,000 applications from students seeking to have their loans forgiven on the grounds they were defrauded, some of which date to the previous administration.
Trump administration selects former DeVry official to lead college enforcement unit
By MICHAEL STRATFORD
08/30/2017 12:03 PM EDTUpdated 08/30/2017 04:13 PM EDT
The Trump administration has tapped a former for-profit college official to lead the Education Department unit that polices fraud in higher education.
Julian Schmoke Jr., who previously directed campus operations at West Georgia Technical College and served as a dean at DeVry University, will be the department’s new chief enforcement officer, according to an internal email obtained by POLITICO.
Schmoke will lead the Student Aid Enforcement Unit, which was established by the Obama administration to more aggressively combat fraud and deceptive practices at colleges and universities. Continue reading
FMU demite 220 professores e reformula grade horária sem consultar alunos
As mudanças farão com que os alunos percam o correspondente a uma aula por dia – de quatro aulas, eles passarão a ter três
SÃO PAULO – Com cerca de 70 mil alunos e 9 campi em São Paulo, a FMU (Faculdades Metropolitanas Unidas) anunciou na última semana, através de comunicado enviado aos alunos, uma reformulação curricular e a demissão de 220 professores.
As mudanças farão com que os alunos percam o correspondente a uma aula por dia – de quatro aulas, eles passarão a ter três –, estendendo a duração do semestre para que não haja perda de carga horária. Elas entram em vigor a partir do dia 2 de agosto, quando iniciam as aulas do segundo semestre. Continue reading
FMU demite 220 docentes e preocupa alunos com anúncio de reformulação
FERNANDA PEREIRA NEVES
DE SÃO PAULO
07/07/2017 12h00 – Atualizado às 15h58
Estudantes da FMU (Faculdades Metropolitanas Unidas) terminaram o semestre com preocupações além das notas e aprovações. O anúncio da demissão de 220 professores e de uma reformulação na grade curricular provocou dúvidas e até revolta entre os alunos.
“São vários professores queridos, bem avaliados, com mestrado e doutorado, que foram demitidos sem nenhuma justificativa, e a carga horária, que era de 3 horas e meia por dia, agora vai para 2 horas e 48 minutos, pra ser preciso”, afirma Roberto Montanari Custódio, 20, que irá para o sétimo semestre de direito em agosto. Continue reading
Laureate Education IPO Gets An ‘F’
Jan. 31, 2017 2:10 PM ET
Laureate Education is set for an IPO which can raise them over $550 million. The company faces high debt in a tough industry. Suffocating debt combined with signs of declining revenue are reasons to skip this IPO. I wrote an article back in October of 2015 about the Laureate Education (NASDAQ:LAUR) IPO here. While I was bearish on the company when I wrote that article not much has changed. However, since the IPO is only a couple days away I thought I would take the time to reiterate my concerns.
They Are Leveraged
Laureate Education is swimming in nearly $4 billion in long-term debt, which can present a problem operating in the for-profit education industry. On the short-term horizon, they have enough cash to get around but don’t currently have comfortable liquidity. They have a cash ratio of 0.25 but a current ratio of 0.78. This shows that the IPO proceeds are going to be important for Laureate Education. Their cash Continue reading
IPO Preview: Laureate Education Is Not An Educated Buy
Jan. 31, 2017 9:21 AM ET
LAUR filed an S-1/A with the SEC for its upcoming IPO, intending to sell 29 million shares at a marketed price range of $17 to $20.
LAUR has an additional 4.35 million shares as an over-allotment option for its underwriters.
Despite impressive revenue figures and a strong recent swing to profitability, LAUR’s IPO process has revealed some problems.
LAUR has a debt of more than $4 billion, and its former chief accounting officer filed a whistleblower complaint against the company.
We are hearing the deal is covered with some price sensitivity at the low-end of the range. We recommend that investors pass on this IPO. Continue reading