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
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