Despite Scrutiny of For-Profits, Crucial Questions Are Unanswered

Congressional hearings tend to be orchestrated blends of theater and policy: heavy on anecdote, light on insight, rife with both the posturing of politicians and the faux contrition of well-rehearsed witnesses caught in a televised bull's-eye.

There was some of that, but luckily a bit more, when Senator Richard J. Durbin served as both host and de facto prosecutor on Tuesday at a Chicago forum on our for-profit colleges.

Sources: 
The New York Times

And Now, We Hear From the Defense

By Matthew Schnittman, TopSchool

In Senator Harkin's opening remarks during the recent congressional hearings on higher education, he stated, "We have a responsibility to ensure that taxpayer dollars are being spent wisely, and that for-profit colleges are serving students, not just shareholders." As the CEO of TopSchool and previously serving as the president of eCollege, I understand the need to serve shareholders. However, I couldn't agree more that the ultimate goal of those of us in education is to serve the student.

For-profit colleges have a huge opportunity to move education forward, and at a great value to taxpayers. They have already made great strides in driving access, innovation and a trained workforce.

Sources: 
Higher Education Management

VA Releases New GI Bill Rates

Post-9/11 GI Bill tuition and fee caps for the 2010-2011 have been released by the Veterans Affairs Department, providing key numbers that will allow the processing of payments to colleges and universities for students enrolled in the fall term.

The caps, based on information provided by state approving agency information about the highest rates for in-state tuition charged by public institutions in the state, set the maximum payment levels for students using the year-old education benefits program.

While the trend generally is upwards in terms of college costs, there are some extreme increases and decreases in the cost-per-credit hour and maximum fees.

Sources: 
Army Times

Kansas and Missouri Representatives and Senatorial Staff Visit Pinnacle Career Institute Campuses

Kansas City, MO -- September 1, 2010 -- As career colleges experience the heat of the spotlight in Washington, D.C., Pinnacle Career Institute continues to strengthen its solid relationship with local and federal government by hosting campus tours. Democratic Rep. Paul Davis of Lawrence visited the Pinnacle Career Institute -- Lawrence campus on August 11, Democratic U.S. Rep. Emanuel Cleaver of Missouri visited the South Kansas City campus on Aug. 16, and Regional Director Corey Dillon also visited the South Kansas City campus on behalf of Democratic U.S. Sen. Claire McCaskill of Missouri on Aug. 17.

Sources: 
PR Web

Gainful Employment Rules Ignore Demographic Realities

One of the biggest risks facing publicly traded for-profit educational institutions is the Department of Education's (DoE) proposed "gainful employment" rule. Under the proposed rule, schools where less than 35% of students are repaying the principal on federal education loans would essentially become ineligible. Schools with 35-45% would face restrictions on their ability to receive these loans. There are some additional income stipulations, where if debt is 8% or less of income, then the above restrictions can be waived.

Notably, the rule is set to only apply to for-profit institutions, not publicly funded 2 or 4-year schools.

Sources: 
The Motley Fool

Blog: The Importance of Outcomes -- Part 1

By Amir Moghadam

MaxKnowledge Performance TV Interview: Betty Demers, Vice President of Educational Services with Delta Career Education Corporation, shares her perspectives on the outcomes and performance measures in which colleges should focus, and why they are so important.

The 1st of a 2 part interview.

Watch this interview

Sources: 
Amir Moghadam

Education Stocks: Is Worst Over?

For-profit education companies have taken a pounding over the last few months. While bullish investors point to stable earnings and a growing need for vocational education, regulatory concerns have given the bears the upper hand.

At stake is the use of federally backed student loans to fund education which is supposed to create a stronger workforce. For-profit schools rely students having access to these loans -- but for the most part the federal government isn't happy with the results.

Drop-out rates have been much higher at for-profit institutions than their state-run counterparts, often leaving students saddled with significant debt (funded by the taxpayer) and with little or no advancement in career opportunities.

Sources: 
Seeking Alpha

Phoenix Pays to Tell Its Story

When it comes to marketing, the University of Phoenix doesn't like to be outdone. Its advertisements are ubiquitous on public transportation and television, its name is splashed across the Arizona stadium that hosted the 2008 Super Bowl, and earlier this summer it offered scholarships to members of the Boys and Girls Club as part of its sponsorship of basketball star LeBron James's announcement of his next career move.

Sources: 
Inside Higher Ed

Collins College Wins the 2010 PGSF College Poster Design Competition

Collins College, Graphic Design Department, Tempe, Arizona has won the 2010 Print and Graphics Scholarship Foundation (PGSF) College Poster design competition. The poster, titled "Creativity Makes Your Kolors" will be sent to all colleges and high schools in the United States that have printing and graphic communication programs for the 2010-2011 academic year. The poster promotes the availability of scholarships to pursue a career in the graphic communication industry. The posters will be available at the PGSF Booth in Education Main Street during GRAPH EXPO in Chicago, October 3 through October 6.

Sources: 
What They Think

School Attracts its Largest Class

Students and staff at Ashford University had plenty to celebrate Tuesday.

In addition to officially opening its new $4.6 million athletic facility, Ashford welcomed the largest freshman class in the school's 92-year history and reached a new level of overall enrollment on campus.

Ashford has about 430 new students this fall, more than doubling the record of 189 set last year, said university president Jane McAuliffe.

Combined with about 320 returning students, that gives the private, for-profit school about 750 full-time, on-campus students, up significantly from the 452 at the school at the end of last year.

Sources: 
Quad-City Times
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