Archives for category: Higher Education

The Boston Globe published an alarming story about the college student debt crisis. It goes like this: colleges recruit/lure low-students with promises of a better life; the students are poorly prepared; they don’t graduate; they start life with a heavy debt, not a better life.

 

 

An example:

 

Dean College sits on a pretty, leafy campus in Franklin. A former two-year college, it began offering a selection of bachelor’s degrees only about a decade ago. It now accepts about 70 percent of the students who apply, the same rate as Fitchburg State University. Last year, Dean sent a financial aid award letter to an accepted student whose family, the federal government had determined, was so poor that the “expected family contribution” (EFC) to that student’s education was zero. The college awarded the student a Dean Presidential Grant of $17,000 and another nearly $13,000 in institutional, federal, and state grants, meaning that almost $30,000 of the bill was covered and never had to be paid back. Sounds great, right? Yes, until you look at the larger numbers on the award letter. The total cost of attendance — tuition, room, board, and fees — was $53,120. That meant the gap that this “zero-EFC” student had to cover through loans and other means in order to attend was more than $23,000. Per year. Over four years — and with only modest rises for inflation factored in — that total gap could be expected to climb to around $100,000, not counting future interest payments. That’s a ton of debt, particularly for a degree from a college whose median annual salary for alumni 10 years after enrolling is just $32,700.

 

To Dean’s credit, about half of its students who pursue a bachelor’s degree manage to graduate. Contrast that with Becker College in Worcester. On its website, Becker talks about being able to trace its roots back to two signers of the Declaration of Independence. It does not, however, mention what US Department of Education data from 2012-2013 show: namely, that just 16 percent of Becker’s students managed to graduate in four years, a number that inches up only to 24 percent when the time frame is extended to six years, the federal standard for completing a bachelor’s degree. In other words, 3 out every 4 students who enrolled as freshmen at Becker failed to graduate. Nor does the website mention that, after all grants and discounts are applied, a typical zero-EFC low-income student is required to come up with more than $25,000 every single year to cover the costs of attending Becker.

 

This seems to be the operating calculus at many small, private, nonselective or less selective colleges across the region, which routinely accept more than 60 percent of applicants. Consider the average annual “net” prices — after discounts and grants have been deducted — that these colleges are charging students coming from families whose total adjusted gross annual income is $30,000 or less. At a surprising number of colleges, this annual net price represents nearly all of that family’s total income for the year.

 

It is hard to remember that college was once affordable, that community colleges were once free, that all public colleges were heavily subsidized by the state and federal governments. As these examples show, many young people and their families simply can’t afford the high cost of college, even though a diploma will increase their lifetime of earnings.

Last week, the New York Times published an editorial criticizing the nation’s public schools for the rate of remediation courses taken by college students. It relied on a report prepared by Education Reform Now, which is part of Democrats for Education Reform, the advocacy group created by hedge fund managers to push charters, high-stakes testing, and Common Core.

 

 

Aside from the partisan advocacy of the funders and sponsors, there are basic questions of fact and interpretation, i.e., spin.

 

 

I didn’t go into the underlying study, but others did.

 

 

Alan Singer posted a blistering critique and suggested that the editorial writer would not have gotten through middle school with such faulty logic and weak evidence. While the editorial promotes Common Core, it fails the most basic expectations for textual analysis.

 

 

He reviewed the numerous flaws in the report and concluded:

 

 

“I don’t know if the New York Times considered any of these issues before it endorsed the propaganda report by charter school and testing advocates promoting their political agenda. Apparently the Times editorial team has difficulty when it has to “[d]istinguish among fact, opinion, and reasoned judgment in a text, “ another area where they failed middle school Common Core. Instead of praising colleges for raising standards and providing support so students can reach these standards, the Times and the testing and charter school people take pot shots at public schools. ”

 

 

Russ Walsh wrote about what he called “the college remediation course hoax.”

 

 

Walsh explains why remedial courses ballooned and how the colleges responded inappropriately.

 

 

He writes:

 

 

“With the growing number of students attending college since the 1960s, colleges found that not all students had the skills in reading, writing and mathematics that professors were expecting when they entered the classroom. The colleges responded by creating non-college credit remedial courses that students were forced to take, almost always because of some score they received on a college “placement” test. And so a cottage industry of remedial, non-credit courses was created on campuses across the country, often taught by adjunct faculty of dubious qualifications and most often completely separated from the for-credit courses that other students were taking.

 

 

“The results were inevitable. Students began collecting huge tuition debt paying for courses for which they did not receive credit. Often these students had to take these remedial courses over and over again because they could not pass the exit exam, which was frequently another standardized test. The students never got the chance to feel like they were regular college students. Within a year or two these students, frustrated with their lack of progress, dropped out of school burdened with student loan debt and without a degree or good job prospects.

 

 

“Colleges, certainly the four-year colleges, I am addressing here, should not have and did not have to go the remedial course route. The schools could have and should have known that reading and writing courses that are removed from the context of a real course have very limited impact. (I will not address math remedial courses here because it is outside my expertise, but I believe the same principles would hold.) Rather than place students in courses designed for writing improvement or reading improvement, the colleges would have been much better off placing these students in the regular classroom and then providing them with the support they needed to succeed in these courses.”

 

 

Others have weighed in.

 

 

Jersey Jazzman reviewed the data and raised important questions. Why did the report use public schools as a punching bag (what % of the students in need of remediation attended private schools, religious schools, or charter schools)? How credible was it to claim that affluent students had higher rates of remediation at four-year colleges than economically disadvantaged students? Does that mean that the high schools attended by kids in poverty are better than those in posh suburbs? Jersey Jazzman questions the Times’ faith in the idea that high standards and hard tests are the key to college readiness. He threw down the gauntlet on Common Core, challenging anyone to produce evidence that adherence to Commin Core increases college readiness.

 

 

Audrey Hill challenged the study authors’ decisions about which families should be considered affluent, middle-class, and low-income. She compares their data with federal guidelines defining poverty and concludes–unlike the ERN study–that only 6 of 100  students receiving remediation come from middle-class or upper-income families.

 

It seems odd that sensible people have to argue that low-income students are less likely to get a good education than students from middle-class and upper-income communities. If that were true, as the ERN report and the New York Times believe, then upper-income students should be clamoring to get into the schools attended by low-income students. Are the wealthy kids on the losing side of the achievement gap? What a ludicrous claim.

 

 

 

 

 

 

Chicago students occupied The Chicago Symphony Center to protest Governor Bruce Rauner’s failure to fund higher education and to raise taxes on his billionaire buddies.

 

 

California’s Attorney General Kamala D. Harris won a settlement in excess of $1.1 billion against defunct for-profit Corinthian Colleges for defrauding students  with false advertising. There is a website in the linked article where students can apply for restitution. Since the corporation is bankrupt, they may never see any repayment. The entire for-profit sector is a mighty scam; they should all be tightly regulated for fraud and predatory practices. Or shut down before more students are ripped off.

 

The Los Angeles Times reported:

 

 

Granting a default judgment, San Francisco Superior Court Judge Curtis Karnow found that Corinthian Colleges provided untrue or misleading statements about graduates’ job placement rates, duping both students and investors, and that the Santa Ana-based company unlawfully used U.S. military seals in advertisements, among other claims.
The for-profit college operator, which filed for bankruptcy protection in May, was also faulted for advertising programs or degrees that it didn’t offer, such as training programs for X-ray and dialysis technicians, according to court papers.

 

The judgment found that Corinthian and its subsidiaries had unfair and unlawful debt collection practices, including barring students from attending classes if they were behind on loan payments, and that they failed to disclose their role in the “Genesis loan” program.

 

Corinthian Colleges, along with its Heald College business, were also faulted for misrepresenting the likelihood of whether academic credits earned at their programs could be transferred to the Cal State system, according to court papers.

 

In his 21-page judgment, Karnow ordered restitution of $820 million for students and civil penalties of just more than $350 million.
“For years, Corinthian profited off the backs of poor people — now they have to pay. This judgment sends a clear message: There is a cost to this kind of predatory conduct,” Harris said in a statement.

 

Harris filed suit against Corinthian Colleges Inc. and its subsidiaries in 2013, accusing the company of targeting low-income students with a “predatory scheme,” touting untrue job placement rates.

 

The attorneys for Corinthian did not appear at hearings, because they say the  corporation is bankrupt and there is no one to represent.

 

 

 

 

Here is David Coleman, the arbiter of what America’s children should know and be able to do.

 

This is quite a lofty perch. First, he oversees the writing of what are supposed to be national standards.

 

Now, he is in charge of testing whether students are qualified to enter college.

 

What an amazing career trajectory for a guy who never taught and whose primary experience was with McKinsey and later with his own testing business, which he sold to McGraw-Hill for $14 million.

 

 

for further information:
Bob Schaeffer (239) 395-6773
cell (239) 699-0468

for immediate release, Monday, February 22, 2016
SAT “FACELIFT” FAILS TO ADDRESS EXAM’S BASIC FLAWS —
WEAK PREDICTION, BIASES, AND SENSITIVITY TO COACHING;
50+ SCHOOLS GO TEST-OPTIONAL SINCE REVISIONS ANNOUNCED

Saturday, March 5, is the first administration of the “redesigned SAT.” Though its sponsor, the College Board, is promoting revisions in the exam’s appearance, none of the upcoming changes addresses its key weaknesses, according to the National Center for Fair & Open Testing (FairTest).

Bob Schaeffer, FairTest’s Public Education Director, explained, “Even the College Board admits that the ‘new’ SAT will not provide more accurate forecasts of undergraduate success. It will still under-predict the classroom performance of women, older applicants and students whose first language is not English. The coaching industry is already selling high-priced ‘test prep steroids’ to teenagers whose parents can pay thousands to artificially boost scores on the revised exam.”

“The ‘new’ SAT may look more consumer-friendly, but is not a better test,” Schaeffer continued. “The facelift is largely marketing bells and whistles. The changes seem designed to compete with the ACT, the most widely used admissions exam. The College Board also appears more interested in trying to slow the test-optional movement than improving the test’s measurement precision.”

Schaeffer concluded, “Higher education decision-makers increasingly recognize that neither the ‘new’ SAT nor the rival ACT is needed for high-quality admissions.” Since the College Board announced the SAT redesign, more than 50 schools adopted test-optional policies. This month, a Harvard study encouraged other colleges and universities to follow suit. More than 850 accredited, bachelor degree granting institutions do not require SAT or ACT scores from all or many applicants. That list includes 200 schools ranked in the top tiers of their academic categories.

– – 3 0 – –

– FairTest’s directory of test-optional and test-flexible colleges and universities:
http://www.fairtest.org/university/optional

– Chronology of 140+ schools dropping ACT/SAT requirements in past decade
http://www.fairtest.org/sites/default/files/Optional-Growth-Chronology.pdf

– List of 200+ top tier schools that do not require admissions test scores from all or many applicants
http://www.fairtest.org/sites/default/files/Optional-Schools-in-U.S.News-Top-Tiers.pdf

Politico reported this morning that the 30 colleges and universities that dropped the SAT and ACT this year have seen an increase in applications, especially among minority and low-income students. There are now more than 850 “test-optional” institutions of higher education.

 

 

 

FEWER TESTS, MORE APPLICANTS: After a wave of more than 30 colleges and universities decided to make SAT and ACT tests optional for applicants last year [http://politico.pro/1TnyJl5 ], a number of those institutions are seeing an uptick in applications. Though officials at several colleges cautioned that they can’t attribute the growth in interest to test-optional policies alone, some universities think it could be helping, especially when it comes to increasing the number of applicants from minority and low-income backgrounds. George Washington University announced a test-optional policy last summer, and has reported a 28 percent increase in applications, with 20 percent of applicants opting not to submit scores. The school also said it has also seen an increase in minority applicants and first-generation students. The Washington Post has more about GW: http://wapo.st/1nLjJDn.

 

– Kalamazoo College, which announced a test-optional policy last spring, had seen a 51 percent increase in applications as of Feb. 2. And applications from domestic students of color have risen 50 percent compared to last year, the college said. Kalamazoo also recently hired a consulting firm to help expand its applicant pool, and installed new technology to help staff track and communicate with prospective students.

 

– The University of Puget Sound, in Tacoma, Wash., has seen a 10 percent increase in applicants since announcing a test-optional policy last June. The school has also had a 20 percent increase in applicants from underrepresented minorities, 23 percent of whom applied without test scores. “I can’t draw a definitive link, but our test optional policy may have contributed to that increase,” said Jenny Rickard, vice president of enrollment. Puget Sound also launched an initiative with local public schools to provide full financial aid to Tacoma students, and to first-generation students who participated in a special college access programs.

A few days ago, I posted about the odd circumstance that friends of President Obama had bought one of the nation’s largest for-profit corporations that provide higher education, even though it is generally known that these “colleges” have abysmal graduation rates and are known for predatory practices.

 

Now, the Wall Street Journal is pointing out the irony that the Obama administration harassed these institutions, drove down their value, and former Obama staff and current friends are taking them over at a fire sale price. We know, based on the actions of the Department of Education under Arne Duncan, that the administration has no objection to for-profit charter operators. We know, from Arne Duncan’s selection of Joanne Weiss, CEO of NewSchools Venture Fund as his chief of staff, that he has a fondness for the corporate sector. We know, from Arne Duncan’s selection of Ted Mitchell, also a CEO of NewSchools Venture Fund, as Under Secretary of Education, that the Department favors entrepreneurs. NewSchools Venture Fund underwrites charter chains and education businesses. It is at the epicenter of the corporate ed reform biz.

 

So, I am not so sure I agree with the WSJ’s characterization of the Obama administration as hostile to for-profit ventures. I think the collapse of for-profit higher education value is due to its poor performance and its lack of value or values. The dropout rates are higher than those in nonprofit institutions, and some employers will not recognize degrees from these diploma mills.

 

In an editorial titled “Regulating Education for Profit,” the WSJ writes:

 

Check out last week’s proposed sale of Apollo Education, parent company of the University of Phoenix. When Mr. Obama was preparing to take office in January 2009, Apollo stock hit a multiyear high above $78 per share. Seven years later, after Washington’s regulatory onslaught that favored nonprofits over for-profits in doling out federal subsidies, the shares had recently fallen below $7.

 

The University of Phoenix was once educating close to half a million students but last month reported an enrollment below 180,000. And with Apollo recently trading below book value, it might be a real bargain—especially for an investor betting that the next Administration might go easier on for-profit colleges. Now comes news that Apollo will be sold to several private equity firms. And coincidence of all coincidences, after the sale closes the company will be run by a former top official in the Obama education department, the same outfit that led the attack on Apollo.

 

The Vistria Group is a Chicago private-equity firm. The company was founded around the time that Mr. Obama was beginning his second term and its founders include Marty Nesbitt, who began playing pick-up basketball with Mr. Obama years before he became President, and Tony Miller, who was the second highest-ranking official in the Department of Education from 2009 until 2013.

 

Once the sale closes, Mr. Miller will become chairman of Apollo’s board….

 

By the way, the Obama education department will have to approve Vistria’s purchase of Apollo, and we’re told the guidelines for approval are notably vague. What better way to win a regulatory blessing than have a former senior education official like Mr. Miller commune with his old regulatory comrades. Hey, Tony, great to see you; any job for me after, say, Jan. 20, 2017?….

 

To summarize, an Obama pal is the day-to-day boss of a department that succeeds in destroying 90% of the value of a politically targeted company. Then he leaves government, buys the company at a fire-sale price and announces that the problems that attracted so much negative government attention are ending—just in time for a new Administration that might not hate for-profit education as much as this one. Government mediation sure can be a lucrative business model.

 

 

 

A group of investors with close ties to the Obama administration have taken control of the University of Phoenix and other for-profit “universities.”

“The troubled for-profit education company that owns the giant University of Phoenix agreed on Monday to be bought for $1.1 billion by a group of investors that includes a private equity firm with close ties to the Obama administration.

“The university and its owner, the Apollo Education Group, have been subject to a series of state and federal investigations into allegations of shady recruiting, deceptive advertising and questionable financial aid practices.

“In recent years, many for-profit educational institutions that have received billions of dollars in federal aid, including the University of Phoenix, have been pummeled by criticisms that they preyed upon veterans and low-income students, saddling them with outsize student loan debt and subpar instruction.

“Moreover, at many of these schools, enrollment has been falling and profits shrinking, casting doubt on the future health of the industry.

“The investors in the Apollo Education Group include the Chicago-based investment firm Vistria Group, the Phoenix-based Najafi Companies, and funds affiliated with Apollo Global Management, which is not connected to the Apollo Education Group….

“Vistria’s founder is Marty Nesbitt, one of President Obama’s closest friends and the chairman of the Obama Foundation. Mr. Nesbitt is also a longtime business partner of Penny Pritzker, the commerce secretary.

“A Vistria partner and its chief operating officer, Tony Miller, was deputy secretary of the United States Department of Education between 2009 and 2013. He has been tapped to become the new chairman of Apollo Education Group in August, when the deal is scheduled to be completed.”

If you watched the video of the congressional panel quizzing John King about the ethical “lapses” of Chief Information Officer Danny Harris, you may recall that King said that deputy secretary Miller had cleared Harris.

Now we understand why the for-profit higher education industry has gotten a free pass.

Dr. Barbara Gellman-Danley, president of the the accrediting agency, the Higher Learning Commission, wrote to the governor and state legislative leaders in Illinois and warned them that every public college and university in the state may be required to close because of the legislature’s failure to act on the budget. 

 

She wrote:

 

 

I am writing on behalf of the Higher Learning Commission (HLC), the regional accrediting agency for nineteen states, including Illinois. HLC is recognized by the United States Department of Education to assure quality in higher education and to serve as the gatekeeper to federal financial aid for students in our region.

 

As your role in Illinois includes consequential decisions regarding the governance and funding for colleges and universities, I am notifying you of the potential accreditation outcomes that may result from not approving a budget that will provide funding to Illinois colleges and universities and their students.

 

A criterion for accreditation is demonstration of the availability of financial, physical, and human resources necessary to provide quality higher education. HLC is aware that the colleges and universities in Illinois may need to suspend operations because financial resources from the state are not available. HLC is obligated to move swiftly to protect Illinois students and to ensure the quality of the colleges and universities they attend.

 

Following federal regulations, HLC has notified all Illinois colleges and universities that if they believe they will have to suspend operations or close in the next several months, they must provide HLC with a plan for how students can continue at another college or university to avoid eliminating their access to higher education. For students to continue at another institution, it could mean having to transfer to private universities or leave the state. It is also probable some students may drop out of college. The plan also must explain how students will be informed about this urgent situation, including how they access transcripts if operations have been suspended due to lack of state funding.

 

Will Illinois’ elected officials act responsibility to protect public higher education in their state?