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Date: June 23rd, 2008
Author: Sarah Epstein
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Everyone involved in the career college sector of higher education knows that to stay relevant in today’s market you’ve got to be tuned in at all times. You’ve got to be up on the latest trends, and you can’t let any opportunity pass you by. In an industry where staying alert is essential, it makes sense that career college professionals consistently name Las Vegas – the city that never sleeps – as their top destination choice for Career College Association (CCA) Annual Conventions.
In part due to popular demand, the 2008 CCA Convention & Exposition will be held in Las Vegas at the Mandalay Bay Resort and Casino from June 25-27.
Strategic industry positioning also came into play when Las Vegas was chosen for this year’s convention. According to Katie Calabrese, CCA Director of Events, Las Vegas is home to some of the largest and most significant conventions for businesses and associations.
“CCA understands the critical role the city plays, so we believe it’s important to our organization, mission and attendees to position ourselves among the movers and shakers,” Calabrese said. “Additionally, the CCA membership truly enjoys Las Vegas.”
Those planning to attend this year’s event won’t be disappointed. With key speakers like political visionary and former House Spearker Newt Gingrich and IBM Executive Vice President Nicholas M. Donofrio, the 2008 convention promises to deliver three days of thought-provoking insight.
“In such a critical year of both growth and challenges for the career higher education sector, attendees should expect a jam-packed schedule of events with top-notch educational sessions that cover every major and most minor issues affecting our sector,” Calabrese said.
Besides an impressive schedule of breakout sessions and hearing from national leaders, attendees can look forward to a comprehensive update on the Higher Education Act. There will also be the opportunity to see the latest innovations in education from exhibitors, recognize your peers at an awards luncheon and attend a gala sponsored by the Imagine America Foundation.
Major event highlight
From informative breakout sessions to a gala and golf tournament, the CCA Convention never disappoints in terms of features and attractions. In that respect, 2008 won’t break with tradition. However, this year’s CCA Convention has an additional draw.
“The clear highlight is having former House Speaker and conservative political visionary Newt Gingrich address the audience at Friday’s awards luncheon,” Calabrese said. “His experience and keen intellect will make CCA’s 2008 convention a can’t-miss opportunity.”
Gingrich will present his thoughts on the 2008 presidential election. He will also provide commentary on the current political landscape and how this relates to education, the 21st century workforce and the global marketplace.
Can’t-miss sessions at the 2008 CCA Convention & Exposition
While every breakout session at the CCA Convention is well worth attending, there are a few that promise to deliver vital new information and speak to key industry-focused areas. Below are four highly anticipated sessions you should be sure not to miss.
“All Points Bulletin” – Developments in Campus Crime, Safety and Privacy Regulation
Program Track: Corporate Compliance/Financial Aid
Presenters: Harry Dotson, Concorde Career Colleges Inc.; Jonathan Tarnow, Esq., Drinker Biddle & Reath LLP; Jay Vaughan, Esq., Dow Lohnes PLLC
Time: Wednesday, 3:30 – 4:45 p.m.
Now, more than ever, staying up-to-date on campus crime, safety and privacy regulations is essential. Dotson, Tarnow and Vaughan will discuss developments in these key issues and provide insight into current practices and policy.
Current Perspectives on Student Lending Issues
Program Track: Corporate Compliance/Financial Aid
Presenter: Panel TBD
Time: Thursday, 10:00 – 11:15 a.m.
After a tumultuous year in student lending practices, this session promises to tackle a controversial subject that’s been making national headlines. Now that some of the hype has blown over, speakers will present on the current state of student lending. Learn how the current perception of loan practices will affect the career college sector and directly relate to your school.
Reducing Your Cohort Default Rate: Strategies That Work
Program Track: Corporate Compliance/Financial Aid
Presenters: Anita Kermes, EdFund; John Pierson, FSA; Jeff Arthur, ECPI
Time: Thursday, 1:45 – 3:00 p.m.
Most school owners are trying to reduce their cohort default rates. Find out if you’re letting critical opportunities to reduce your cohort default rate pass you by. In this session, Kermes, Arthur and Pierson will provide indispensable strategies you should be sure not to miss.
Filling the Skilled Worker Shortage – The Role of Career Colleges
Program Track: Research
Presenters: Jane Smalec, Eduventures Inc.; Robert L. Martin, Imagine America Foundation (moderator)
Time: Friday, 10:45 a.m. – 12:00 p.m.
As today’s job market becomes increasingly specialized, the need for skilled workers is rising at an unprecedented rate. With Martin acting as moderator, Smalec will provide keen insight into the vital role career colleges play in society by fulfilling this need.
Education is a primary focus of each breakout session. As a result, the 2008 CCA Convention promises to deliver on areas of significance for every individual involved in the career college sector. Whether you’re a fresh face on the scene or an old hand, breakout sessions are sure to provide new perspectives and can’t-miss updates. You can find out more about:
- Admissions
- Marketing
- Education
- Online education
- Faculty development
- Operations
- Research
- Corporate compliance/financial aid
- Student services/placement
The convention will provide breakout sessions ranging from beginner to advanced levels. Hear what career college experts have to say and apply it to your school.
Accommodations
The Mandalay Bay Resort and Casino is located at the south end of the famous Las Vegas Strip. One of Las Vegas’ most impressive destinations, the resort serves as a desert oasis. With the energizing atmosphere of the casino and the elegant ambiance of its restaurants and architecture, guests get the best of both worlds. For those who want to enjoy some Vegas sunshine, the resort features an exceptional pool, beach area and lazy river.
Sarah Epstein is a graduate of the University of Wisconsin and works with PlattForm as a Public Relations Coordinator. Her primary role is to provide public relations services promoting schools within the career college sector of higher education.
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Date: June 23rd, 2008
Author: Michael Mackie
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According to a recent Forbes.com article, Donald Trump has an empire worth an astounding $3 billion. (The Donald, of course, has disputed this fact saying, “I’m worth $7 billion.”)
Four billion dollars notwithstanding, Donald Trump has continued his quest for world domination by venturing into the world of education. Yes, you read right. Donald Trump’s aptly named Trump University has been open since 2005. Surprised? Most people in the career college industry are relatively unaware there’s a new player in town.
And, while Trump U doesn’t exactly compete with the Vatterotts and DeVrys of the world, it’s certainly making a name for itself. A well-known name at that. Oh, and don’t call it a career college either – it’s an “entrepreneurial college.” In survey after survey, Trump is regarded as the second-most admired entrepreneur in the country … second only to some guy named Bill Gates.
Recently, Career College Central sat down with Trump U’s President Michael Sexton and peppered him with a barrage of questions. Undaunted, Sexton fired back with some candid, honest answers.
CCC: How did this all come about?
MS: People across the country know Donald Trump as a real estate guy. The Apprentice really repositioned him as an entrepreneur. And he increasingly began to see himself as an educator. I think it’s an amazing testament that Donald Trump shows up somewhere to give a speech, and 20 thousand people show up. I don’t know if it was a surprise to Donald Trump, but I think it really opened his eyes to the power of people wanting to understand more about what his philosophies are … and what his approach is in building businesses – how to make them great –
and his approaches to branding. So he started thinking about it: “Hey, I have got a role as an educator. A lot of people want to hear what I have to say.” With the power of Internet and e-learning, you can either seat 20 thousand people at a time or you can reach 20 million or 200 million at a time by giving them the same great content with the promise of the Internet.
CCC: So is Trump University all online?
MS: No, not at all. We started online because we thought it was a good way to do experiential learning in a distance format, but we learned pretty quickly that not everyone wanted to learn online. We had originally started out with some home-study products but quickly had to grow the business in the direction of live events because there were a lot of people out there that still want to do it the old-fashioned way. And we still want to meet that demand and to go for three days of intense training. That has been a big part of the business.
CCC: Yours truly just got back from a big education conference where very few people had heard of Trump University. Are you a hidden gem or on the cusp of going big?
MS: We thought there was a huge imbalance between supply and demand. What we found is when people hear the Trump brand and how it applies to education, they want to figure out how to be an entrepreneur, they want to figure out how to be a real estate investor, how to make money. So we don’t compete with trade schools of the world. Our audience is quite different. It’s people who aren’t looking to go back to school to get a diploma or some sort of credential they are going to put on a wall to get a better job. That is a very worthwhile path and very traditional. Our audience is quite different. They are entrepreneurs by nature. They want to go the other direction. They want to fire the boss. In this country, especially now, I think there is so much instability. The stock market is very volatile. The real estate market is very volatile. People do not have faith that the government is going to support them in their retirement. We attract people who want to better themselves. Everyone wants to better themselves in the abstract. But the people we attract are very successful with us. Those people take it to the next level. They go out and take action and not just dream about it. It’s for people who want to apply it to the real world and achieve results. That’s the biggest distinction.
CCC: Who is – or is there – a typical student at Trump U?
MS: It is all kinds. I go out to our events, and there are doctors that are skeptical of the stock market. They want to invest in real estate, commercial real estate. They want to open a building they are in. I should own a building. You got a lot of people who are looking to transition out of the traditional work environment. They want to work for themselves, take control of their lives. The common denominator is they are high achievers who are driven by the idea of more control, freedom and flexibility. And they come from different paths. We did a demographic survey: High income, high traditional education – very high – but they are at a point in their lives where they want to take it the next level, and the only way they are going to do that is to empower themselves.
CCC: Let me play dumb consumer for a minute. Tell me about Trump U’s curricula. How did it come about?
MS: We think our target is small business owners and individuals who want to improve themselves through education. People who want to enhance their own success or the success of their business. So we put together a marketing curriculum, a negotiation curriculum. Mr. Trump has been very instrumental … he’s got a real passion for education. He has some very unique and compelling ideas about how to teach people. We found very quickly that people were interested much more in real estate and entrepreneurship. And they were interested in marketing to some extent because those were things they perceived would drive revenue in their business or ways they could drive wealth into their own lives. We really want to be very customer-driven. We are here to serve the market.
We are going to meet those needs, and that’s what has really helped drive our curriculum as it evolves. We are always asking, what do you want to learn? What do you have a passion to learn? We look at that, and we say, “Does this fit strategically with where we’re going, and do we have the expertise?” Most of the time it does – so we’ll go out and develop that course. We continue to evolve. We continue to evolve very aggressively.
CCC: Do tell … who is your competition?
MS: I think we have tapped into a under-served market. I think our main competition … Listen, we did a survey earlier on with our audience, and we said, “Where do you get business education, continuing education today?” Sixty percent was the Barnes & Noble business section. I found that a little discouraging because I find that while books are effective, books aren’t always the best way to learn.
CCC: What’s the word on the street? What are your students saying?
MS: When you talk to students, what you realize is that there is so much frustration out there. One of the biggest motivations for an individual is to see other individuals just like them – achieving. But people need to understand that they can do it. That’s why we spend time getting testimonials from people that look like you, act like you, are from the same background. Because the reality is when you sit down and talk to people, they are doing well, but they want to do better. Everyone is telling them they can’t do it.
CCC: That’s similar to how it is in a career college.
MS: People are always telling them no, right? You aren’t smart enough. You don’t have enough time. You don’t have enough money or skills. But what you realize, and the best stories we get are from people that have been thinking about doing this for years and years. And they finally do it, and Trump University helped push them. Once they do it they realize, man, it’s not that hard.
CCC: Say I call – I ring Trump U to enroll. What happens?
MS: Our goal is to make people successful. What we try to screen for is that gene that people have that will allow them to actually go out and act on what they learn. What we really screen for is: look, are you really going to do this? Again, we want to be judged not by how many students we have, not by how much money we make, but really by what our students have done out there in the real world. What they have achieved and learned from us. I think that is a big part where traditional education falls short. You go take the course and you are kind of on your own at that point. What do you do? And that’s why for us, any program you enroll in here, it’s not just a three-day intensive training. We give you a year. It’s always a year because we know you aren’t going to become an expert in three days. That’s why we are here for 12 months to help answer questions and provide advice and guidance through hotlines, and that’s very important.
We are dealing with higher individuals who they want to go out there and achieve. We want to connect with the student. Once they roll up their sleeves and apply themselves, we are going to stick with them. We really want to do everything we can do to optimize their success.
CCC: Clearly, you’re well on your way to getting your name out there.
MS: We are at the beginning. Like you said, we are at the cusp of it. We are. We get lots and lots of visitors, but 95 percent get here by entering Trump University in a search engine, so they are finding us – we are not finding them. Plus, this year we are doing a much better marketing campaign to get the brand out.
Michael Mackie is an Emmy®-Award Winning Writer/Producer and former Entertainment Reporter who has worked in television advertising and promotion for over 15 years. Mackie has worked and freelanced for a variety of local television affiliates in Des Moines, Orlando and Kansas City. He is currently the Senior Writer/Director at PlattForm – a Kansas City -based marketing, advertising and public relations firm specializing in creative solutions for higher education and all branches of the U.S. military. Mackie has been at PlattForm since January 2004.
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Date: June 23rd, 2008
Author: Kevin Kuzma
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Subtle ridges were left behind ages ago in the high mountains of dirt along Interstate 29 as it passes northbound along the Nebraska-Iowa border. The places where enormous glaciers slipped through are now farmland where cattle stand in the early spring rain, despondently, making good scenery for deathly bored children watching from backseats.
While it might not be an exciting ride for kids, it’s an open road for drivers. Curves in the interstate become more gradual, and the land levels out. More hills border the far edges of the fields, like enormous dinosaur-backed bookends, and in more than one spot along the raw prairie, chestnut trees grow up through abandoned grain silos.
One glance at the starched countryside and barren farm fields is evidence that very little actually grows here this time of year. Students who will follow this road to college hope that whatever the starched countryside lacks in color will find its way into their wallets next fall.
Eventually the interstate comes to Highway 2, which leads west to Lincoln’s southern edge. Through a stunted series of streets named for letters of the alphabet, the University of Nebraska and a handful of career colleges can be found near the business district, which feels almost like an extension of the campus itself.
Here, in the heart of the office strips, is the National Student Loan Program (NSLP), a guaranty agency in the Federal Family Education Loan Program (FFELP). The organization that guarantees student loans are made by private lenders is on the frontlines, along with schools and lenders, observing how the credit crunch will affect student lending and student access to financial aid in the coming months.
Nebraska students are not unfamiliar with the student loan pinch that is encouraging many banks across the nation to pull out of the student loan game altogether. While no institution has reported having a student unable to obtain a federal student loan to date, with more lenders leaving the federal loan program on a regular basis, the likelihood is increasing. Federal guaranteed loans are popular because they offer fixed, below-market rates, but students could be required to pay higher fees to borrow money.
Administrators at traditional colleges and universities are on edge because classroom sizes could be directly impacted next fall as colleges report access to private, nonfederal loans for the 2008-9 academic year is becoming harder for students. Career colleges that face multiple start dates throughout the year are feeling the pinch already.
Along with the other 34 guaranty agencies across the country, NSLP is supporting efforts to keep private lenders in the program by educating our congressional leaders about the potential impact of their departure. There are some pending legislative proposals that might help, but analysts say it’s unclear if those will solve the funding issues that student loan lenders are facing.
“These are unusual circumstances,” said Sharon O’Neal, Director of Corporate Communications for NSLP. “Legislative cuts to the student loan program have intersected with problems in the credit markets to create an untenable situation for some lenders. Many banks and non-bank lenders, like Sallie Mae and Nelnet, have to rely on securitizations and secondary markets for capital to fund student loans.”
Trouble signs for career colleges came as early as March when the Career College Association (CCA) issued a bulletin that stated its member institutions were “worried about loan access.” The bulletin cited a member survey that showed almost 80 percent of respondents had concerns about student access to the Federal Family Education Loan Program (FFELP), the Direct Loan (DL) Program or private loans.
Those results prompted CCA President and CEO Harris Miller and career college sector lobbyists to urge Congress to act sooner rather than later. But as congressional headway was being forged, the Pennsylvania Higher Education Assistance Agency, one of the nation’s largest student loan organizations, announced that it would temporarily stop making federally guaranteed loans.
Citibank, Sallie Mae and JPMorgan Chase followed suit, suspending lending at certain schools – a group including career colleges – and withdrawing from the federal loan consolidation market. In mid-April, Sallie Mae Chief Executive Albert Lord warned of a “train wreck” in the $85 billion education financing market without urgent government intervention.
The credit crunch and recent cuts in federal subsidies have forced a number of lenders to tighten their credit standards on private student loans. Consolidation loans have been among the hardest hit because they’re the least profitable loans for lenders, most of whom are now losing money with each consolidation loan they make. As of mid-April, in total, about 50 providers of federally guaranteed loans, as well as nearly 20 private student loan firms, have pulled out of the market.
Crisis mode
CCA’s survey isn’t the only research exposing what colleges are facing. Another recently published survey conducted by the National Association of Independent Colleges and Universities (NAICU) confirmed that nearly half of its respondents reported that access is more challenging. NAICU President David Warren said in a press release that the results “serve as a warning flare” that action is needed to ensure the problem does not become a full-blown crisis.
But a crisis it may already be. Career colleges are already looking for answers, and those might start by focusing on current students, said Greg Ayers, Senior Vice President of Policy and Administration at USA Funds.
“Anything a school can do to help retain and make sure students complete programs to keep default rates as low as possible will help,” Ayers said. “Those attending institutions with high graduation rates and low default rates among their alumni may still be able to get low-cost private loans.”
Ayers monitors federal legislation, regulations and policy guidance from the U.S. Department of Education. He also develops and disseminates USA Funds’ student loan policies and oversees USA Funds’ human resources and administrative services functions.
Larger banks, Ayers said, do not face the same shortage of liquid assets because they have deposits as a source of capital for student loans.
Prominent financial institutions are expected to continue making FFELP loans, and there are indications that some are using the volatile market to increase their market share as non-bank lenders are scaling back. For example, JPMorgan Chase & Company announced it was lowering fees and rates on loans, presumably in an effort to increase its market share.
On the flip side, non-bank loan providers are having a difficult time raising enough cash through asset-backed securitization (ABS) and bond deals to continue making loans.
“Non-bank lenders and secondary lenders are having a difficult time finding investors for capital loans,” Ayers said. “Even when they do have investors, they are requiring such high interest rates or rates of return that it’s hard for investors to meet those.”
Canary in a coal mine
Caught between banks that are backing out and others that are capitalizing on the market, many college students are going to pay higher costs for loans. At community and career colleges, some students may be denied private loans entirely because the financial industry considers them somewhat “riskier” investments than peers attending other educational institutions.
If the credit crunch is prolonged, lasting into the summer and fall, market analysts are predicting there could be disruptions in FFELP. But since ABS made up of FFELP loans are such a secure investment, investors might begin bidding on them again in the near future, Ayers said. That would allow non-bank student loan providers to raise capital.
Some college financial aid experts have high hopes for a program President George W. Bush signed into law on May 7th to stabilize the student loan industry. The program temporarily allows the U.S. Department of Education to pump government money into the sluggish secondary market for securities backed by student loans. That’s where many lenders obtain capital needed for making new loans.
As the peak summer lending season approaches, though, it’s still unclear if the measure can curb student loan shortages. With its newly expanded role in the student loan realm, the Department of Education can buy up loans until mid-2009. More grant and loan money is available for students and parents, and the terms of repayment has been eased for some borrowers. Even students with mortgage problems are protected under the new program.
But for career college administrators who have been struggling with the situation for months, it may be hard to see past the negatives in a bill that seems like too much, too late. CCA’s Miller said the hardest battle – convincing elected officials on Capitol Hill that a problem existed in the first place – has already been won.
“Our sector’s students have been the canaries in a coal mine, the first hurt by the student loan credit mess,” Miller said. “In Washington, we faced a daunting task convincing lawmakers on both ends of Pennsylvania Avenue that there is a real crisis impacting real students as most talked about an ‘impending’ crisis in September when traditional school years start, not realizing many students start programs year-round.
“With the incredibly rapid enactment of HR 5715, our lawmakers recognized that higher education is the rocket fuel of a globally competitive workforce and moved quickly to protect this critical resource. We applaud their efforts and foresight. Similar action is now needed to assure that the new federal student aid does not push many of our schools over the 90-10 threshold.”
Miller said the focus of attention should now return to House-Senate conference deliberations over the reauthorization of the Higher Education Act.
Now at its volatile height, the student loan market is as uneven as the rolling Nebraska landscape. With career colleges at the forefront of the credit pinch, it could be next fall before the loan market levels out for student borrowers. The market is changing by the minute as more and more banks withdraw, and there’s no telling how tight credit requirements might become.
What can be forecasted are the millions of students who will still find their way to career colleges and universities alike, hoping to live out their educational dreams. They are willing to trade whatever it costs for a clear road to college, and only elected officials and educators can hope to take down the added scenery to make it a fair, unobstructed drive next fall.
Kuzma is Editor-in-Chief of Career College Central. He is a former newspaper editor and public relations spokesperson. His feature writing, essays and short stories have appeared in The Kansas City Star, Urban Times, Ink Magazine and Fatherville.com, an online forum for fathers. Since May of 2005, he has served as Manager of Public Relations and Publications for PlattForm. The Kansas City-based company is a full-service Marketing, Advertising and Public Relations firm specializing in creative solutions for higher education and all branches of the U.S. military.
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Date: March 14th, 2008
Author: Career College Central
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Robert L. Martin
President, Imagine America Foundation
What’s made you proudest about your involvement in the sector?
What’s made me proudest is being able to reinvigorate an organization that, at the time, had so much potential to help career college students, but was so unappreciated and under-utilized. There was the possibility to change and shape that organization around helping students of all types, from those entering high school, to adult learners and those who have been recently discharged from the military. The focal point of our work has been implementing a variety of programs that could help them all. In my mind, the heart of the Foundation has been and will continue to be assistance to students ahead of the research and leadership components.
What would you like your legacy to be?
Given the nature of the Foundation, our legacy will be tied to the successes of our students. I want to be able to look back and know they were able to attend a career college because of our assistance. Because of what we’ve done, a number of students who may not have been able to attend a career school were able to get their lives going and make the best of it.
Kimberly McWaters
President/CEO, Universal Technical Institute Inc.
In what ways have you influenced the sector?
Clearly the purpose of career colleges is to educate and train America’s workforce. To do so, we must first understand and anticipate the needs of our employers and then develop and deliver educational programs that best prepare students for careers in those fields. Hopefully, as CEO of Universal Technical Institute, I have played a small part in supporting this mission and have been able to demonstrate the value of this concept to others in the sector through our unique, industry-driven business model.
How has your own career path inspired you in executing UTI’s mission to provide an education and, thereby, new or better lives to students?
I started as the receptionist at UTI nearly 24 years ago and was hooked in the first three months. To see the difference we made in people’s lives day after day became my source of inspiration and motivation. I have spent the majority of my time at UTI in marketing, developing and implementing strategies that would enable more students to take advantage of a UTI education. I am fortunate to now lead this organization, full of people who share my passion and commitment to our purpose. The sheer power of our collective will enables us to execute our mission: to truly change people’s lives for the better.
Matthew Johnston
President, SBBCollege
In what ways have you influenced the sector?
Having respect for so many individuals that have influenced me over the years and knowing I still have so much to learn and give back for what I have received, it is hard for me to express belief that I have yet “influenced” this sector. Other than maintaining a personal commitment and expressive passion for delivering a quality education and the business practice of doing first what is right for the student, I still have many years left to contribute and reflect on ways I might continue with any influence for this sector.
Why does the career college sector have such an appeal to you and your family? How have your successes prompted you to take a more prominent role in forwarding the sector’s causes?
I can’t explain how specifically the appeal or addiction to career education got into my family, but I can tell you that it’s in our blood and going to be hard to get out. What other business can you get into where you have the opportunity to work intimately with professionals from numerous disciplines including medical, business, legal, wellness, etc.; working together helping people to change their lives for the better; and then get to celebrate everyone’s successes at a graduation year after year?
I attribute my successes to modeling after the many individuals that I have had the opportunity to gain exposure to. With an understanding that there isn’t any secret recipe to what we do and that it takes many ingredients for things to turn out right, I believe you have to participate in the planting as well as the harvesting of these ingredients. Accreditation is a common link between the Department of Education, state agencies and institutions, and their associated accountabilities are something that I have been accustomed to for years. When the opportunity presented itself to serve on the council at ACICS, I was humbled by the opportunity to plant my experience and expressive passion into finding common-sense policy solutions to the everyday issues that institutions and their students face.
Trace Urdan
Senior Research Analyst, Signal Hill
In what ways have you influenced the sector?
I feel as though, in my small way, I have helped to foster better communication in and among the providers in the sector of the most significant issues affecting the business of career education. In particular, I believe that through the newsletter I may have helped to keep smaller, privately held providers abreast of the issues impacting the larger public players and thereby helped them to be more effective and productive.
What would you like your legacy to be?
“Legacy” sounds very grand for what I do, but I would love to be thought of as someone that helped to focus the industry on continually improving the value proposition for the sector – meaning raising quality and focusing programs. I also hope that I have helped to raise the profile and reputation of the career college sector among those investors and others less familiar with the sector.
Rene Champagne
Former Chairman/CEO, ITT Educational Services Inc.
In what ways have you influenced the sector?
I entered the career college sector in 1985 and quickly recognized that a strong national membership association was necessary to contend with the highly regulated business environment. I worked closely with CCA’s two predecessor organizations – NATTS and AICS – and I supported the formation of CCA from those two organizations. I have assisted CCA by conducting many membership training seminars, particularly with a focus on school compliance programs and methodologies. I served on the CCA board of directors from 1996 to 2001, and in 2007 I rejoined the CCA board. I have testified before congressional committees and lobbied members of Congress on behalf of our sector. In addition to those items, I served as CEO of ITT Educational Services Inc. for 21 years.
What would you like your legacy to be?
I have been a passionate advocate of career colleges. Our sector of higher education is vital to the United States, as we are preparing the future middle class – those individuals who actually do most of the work in our economy and pay a significant portion of the income taxes levied in this country. Our sector provides educational opportunities to nontraditional students – those who have not done well in the traditional academic environment of universities or have chosen not to attend traditional universities. Our students seek out our schools as a means of becoming economically self-sufficient; it’s the pursuit of the American dream. I am very proud to have played an important role in assisting thousands of ITT Technical Institute students in achieving their education goals. Upon retiring from ITT Educational Services Inc., my wife and I created a charitable foundation that will award scholarships to deserving students wishing to pursue an ITT Technical Institute degree program of study.
Career College Central is the definitive voice of the career college sector of higher education. Career College Central offers direct access to career college news, press releases, sector-related blogs, poscasts, videocasts and more.
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Date: March 14th, 2008
Author: Career College Central
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In the last issue of Career College Central, we covered the hottest “new” programs that we anticipate will help grow and separate schools from their competition in the next decade. One of these programs, personal training, is just beginning to find its way onto the menu of offerings at schools throughout the country.
“The statistics speak for themselves,” said Heather Machado, Director of Education at SBBCollege, who helped implement the Professional Fitness Institute program into schools in 2007. “There is no doubt that fitness trainers are in high demand, and this sector of higher education is best suited to meet that demand.”
The timing
There is no doubt that this country is becoming obsessed with fitness. The proliferation of obesity and early-onset diabetes has finally caught the attention of the masses. In turn, the need for personal fitness trainers is growing at an alarming rate, considering the shortage of qualified, certified personal trainers. Consider these facts:
- According to American Sports Data Inc., an estimated 6,349,000 Americans paid for the service of a personal fitness trainer in 2006. This usage has increased by 5 percent since 1998.
- The International Health, Racquet and Sportsclub Association (IHRSA) has noted that the U.S. health club industry generated more than $17.6 billion in revenue in 2006.
- In 2004, more than 65 percent of adults age 20 or older were overweight or obese. The prevalence of obesity among adults increased from 15 percent in 1976 to 32.9 percent in the same year.
America has apparently woken up to the obesity, diabetes and heart disease issues, which are nearing epidemic levels, and people are looking for the experts to help them control their weight, cholesterol and blood sugar. With only 158,700 fitness professionals certified in 2006, according to American Sports Data, fitness facilities are desperately seeking qualified trainers. In some instances, individuals who do nothing more than read a book and take a test are being given ludicrous certifications. Some gyms are forced to hire inexperienced trainers.
There simply are not enough PTs certified by the handful of nationally accredited certification organizations, led by NSCA, the National Strength and Conditioning Association.
The students
“The greatest surprise was the quality of these young men and women and the energy they brought to our schools,” said Brian Stewart, President of Bryan College. “This is a passion curriculum, and some of our students drive long distances every day because of their commitment to becoming a fitness professional. Offering this program has rewarded us with high-quality students, high retention and, most importantly, an energy and passion that positively impact Bryan College students in all programs.”
While the core students are in the 21- to 28-year-old demographic, many of which were high school athletes who remember their participation in physical fitness and competitive activities as the best years of their lives, personal training still attracts a pretty diverse student mix.
“With two years now under our belts, I can see the balance of students spanning three different populations,” said Guy Genske, Director of Pinnacle Career Institute in Kansas City, Mo., which offers Professional Fitness Institutes within their schools. “We get the 18- to 20-year-old who wants to be part of the fitness world but does not want four years of science. Generally mom and dad are quite supportive.
“There is also a growing 30- to 45-year-old student base, and these are some of our absolute best students. They are often people who have had personal success in the gym as adults and want to help others. Another nice benefit is the impact on 90/10. PT is the perfect fit for GI Bill students. We have had so much success with the military that we have one admissions person dedicated 100 percent to that demographic.”
Ages of typical PT students tend to focus on the 21- to 28-year-olds (roughly 60 percent) with the 18- to 20-year-olds (15 percent) and 29- to 45-year-olds (25 percent) rounding out the mix. Gender mix is roughly 55 percent female and 45 percent male, with the younger students leaning male and the older students female.
The income
While many fitness trainers, once certified, will start working at a gym, rehab clinic, community center or in a corporate wellness environment, the goal of many of these young men and women is to run their own personal training business. Either way, the potential for hard-working CPTs is enormous.
- Statistics provided by American Sports Data Inc. estimate that fees for personal fitness trainers range from $25 to $150 per session. The average per-session fee in 2006 was $47.50
- A 2005 American Council on Exercise (ACE) study found that the average income for a full-time personal fitness trainer was $43,000
- In 2006, the Bureau of Labor Statistics estimated the following earning range for personal fitness trainers and group exercise instructors (this includes both full and part-time)
- From a low salary of $14,880 to a high salary of $56,750
- BLS notes that earnings for successful self-employed
CPTs can be much higher
“We’ve had graduates come share with our students how things are going professionally,” Genske said. “Some of the grads in just one year are well-established in their professions and often on their way to becoming managers. The next step is moving on to start their own businesses. While certainly not all grads can boast this, second-year incomes above $50,000 per year are not unheard of in this industry.”
The competition
Despite the obvious viability of this program, it is taught at few accredited schools. In 2005, Purdue University claimed to be the first university to offer a personal training major, but few if any universities followed suit. Most universities are satisfied that Exercise Physiology, Kinesiology or Exercise Science programs are acceptable education paths for those who want to become CPTs. While the science aspect of these programs is outstanding, the hands-on component rarely prepares people to be successful CPTs.
Charles Ware heads Professional Fitness Institute, an organization that works with career colleges to implement a successful fitness curriculum, then takes the students through a week-long boot camp in Las Vegas. The event culminates with the students sitting for their NSCA certification exam. “Traditional universities teach you the science, but when you graduate, you only know half of what it takes to be a successful trainer,” he said. “Training is a hands-on vocation, and if you haven’t had that hands-on experience, your chances of failure increase.”
Obviously, unless a prospective student has four to six years to kill, the career college route is the better choice. Yet, less than 40 accredited schools nationwide offer the program, with more than half of the schools being part of the Professional Fitness Institute network.
In an industry that thrives on unearthing the latest, hot new programs, Personal Training is has already proven it’s one of the “in” ways to reinvigorate curricula. But it has its greatest strength now, while its availability is sparse, and the nation still has its share of people without a workout partner to whip them into shape.
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