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
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
Laureate Education launches FCPA probe into charitable donation
Jaclyn Jaeger | December 20, 2016
Laureate Education, a for-profit higher education institution, said that it is conducting an internal investigation into possible violations of the U.S. Foreign Corrupt Practices Act concerning an $18 million donation that one of its network institutions made in Turkey to a charitable foundation.
“We believed the donation was encouraged by the Turkish government to further a public project supported by the government and expected that it would enhance the position and ongoing operations of our institution in Turkey,” Laureate Education stated in a filing with the Securities and Exchange Commission. Continue reading
Laureate IPO still pending amid political flap, industry crackdown
Douglas L. Becker, chairman and CEO of Laureate Education, takes part on a panel during the second day of Latin America Clinton Global Initiative in Rio de Janeiro in 2013. MUST CREDIT: Photo by Dado Galdieri, Bloomberg ** Usable by BS, CT, DP, FL, HC, MC, OS, SD, CGT and CCT ** (Dado Galdieri / Bloomberg)
John Fritze and Natalie ShermanContact ReportersThe Baltimore Sun
Arrangement with Bill Clinton put Laureate in middle of presidential election.
When Baltimore-based Laureate Education decided to go public last fall, the for-profit university system had just finished a rapid expansion and was preparing to reap the benefits of its newfound global reach.
A year later, the company still hasn’t listed its stock on the market and has become ensnared in the divisive presidential contest between Hillary Clinton and Donald Trump.
The company and founder Douglas L. Becker made news this summer when tax returns released by the Clinton campaign showed that Laureate had paid former President Bill Clinton millions of dollars to serve as its honorary chairman while it was acquiring schools around the globe and Hillary Clinton was secretary of state. Continue reading
For-Profit Colleges Renew Efforts to Destroy Key Accountability Rule
MARCH 13, 2017
POSTED AT 8:16 AM BY DAVID HALPERIN
Buoyed by the ascendancy of Donald Trump, America’s predatory for-profit colleges are renewing their multi-front fight to destroy a key measure to hold them accountable: the gainful employment rule. The new battle plan includes pushes in Congress and before the Betsy DeVos Department of Education, plus two new lawsuits aimed at the regulation, including one, in Arizona, that has not been previously reported. It looks like this harmful effort is rapidly gaining traction. Continue reading
By Danielle Douglas-Gabriel March 14
Gan Gola of Los Angeles holds a ball and chain representing his college loan debt during protests in Washington in 2011. (Jacquelyn Martin/Associated Press)
A new analysis of federal student loans reveals that the number of people severely behind on repaying their debt has soared in the past year, painting a bleak picture of one of the largest government programs.
The Consumer Federation of America (CFA) released a study Tuesday that found that millions of people had not made a payment on $137 billion in federal student loans for at least nine months in 2016, a 14 percent increase in defaults from a year earlier. The consumer watchdog used the latest data from the Education Department, which manages $1.3 trillion in federal student debt owed by 42.4 million Americans. Continue reading
Trump administration rolls back protections for people in default on student loans
By Danielle Douglas-Gabriel March 17
President Trump listens as Education Secretary Betsy DeVos speaks during a meeting with parents and teachers on Feb. 14 at the White House. (Evan Vucci/AP)
Days after a report on federal student loans revealed a double-digit rise in defaults, President Trump’s administration revoked federal guidance Thursday that barred student debt collectors from charging high fees on past-due loans. 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 (Pending: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 Continue reading