Swimming Amongst Sharks

Regulatory dangers lurking below the surface for private sector colleges and schools

NATURAL SELECTION

“A process in nature in which organisms possessing certain genotypic characteristics

that make them better adjusted to an environment tend to survive, reproduce,

increase in number or frequency, and therefore, are able to transmit and perpetuate

their essential genotypic qualities to succeeding generations.”

NATURAL SELECTION DEFINITION FOR COLLEGES AND SCHOOLS

“A process in which schools possessing certain characteristics that make them

better adjusted to an environment tend to survive, expand, increase in number, and therefore, are able to serve succeeding

generations.”

DECLINING ENROLLMENTSTotal -0.20%Public -0.25%Private 1.84%For-Profit -2.92%4-Year 1.17%4-Year Public 1.51%4-Year Private 1.67%4-Year For- Profit

 -1.87%

   2-Year -2.43%2-Yr. Public -2.23%2-Yr. For- Profit

 -7.00%

   Less Than 2- Year

 -1.35%

FEEDING FRENZY MATERIAL

Marketing, recruiting and

advertising23%

Profit20%Other: admin,

exec comp, facilities, fac-ulty, instruc-tion, lobbying and student

services.58%

Spending at 15 publicly traded For-Profit Colleges, 2009

For profit

4-yr public colleges

0% 20%

40%

60%

80%

100%

Percentage of Students taking Loans

Platform calls for private-sector participation and “new models” in higher education. One of his top education advisors has said that a Romney administration would work to eliminate the gainful employment rule as well as regulations that define “credit hour” and require states to authorize distance-education programs.

Tightened regulations. During his presidency, the Education Department adopted the “gainful-employment rule,” which aims to ensure that programs receiving federal student aid are preparing students to succeed in the work force. Put in place rules to thwart misrepresentation in recruiting and to increase state regulation of distance education.

Positions on For-Profit Colleges

Mr. Romney has made examples of for-profit colleges as low-cost alternatives to traditional colleges, and has advised students to shop around for an affordable institution before saddling themselves with loan debt.

In his 2012 State of the Union address, the president said he was putting colleges "on notice" to keep tuition low, and he has touted the federal direct-student-loan program created during his term.

Positions on Loan Indebtedness

Vows to restore the role of banks in the federal student-loan market and to streamline the federal student-aid system. Promises to “refocus Pell dollars on the students who need them most and place the program on a responsible long-term path that avoids future funding cliffs and last-minute funding patches,” according to a report on education.

Secured bipartisan support in Congress this summer for a one-year extension of the current interest rate on some federal student loans. Signed a law that caps some borrowers’ payments at 10% of their disposable income, starting this year for current students, and forgives any remaining debt after 20 years. Halted bank-based lending so that the federal government makes loans directly to students; plans to continue to use savings to step up support for Pell Grants and community colleges.

Positions on Student Aid

ACCREDITING AGENCIES ON NOTICE

“An agency must promptly notify the secretary if it finds systemic

noncompliance with the agencies policies or significant noncompliance

regarding one or more programs at the institution.”

HOT TOPICS 3rd party verification of placement Mandatory programmatic accreditation Growth restrictions Greater authority and autonomy of programmatic

accreditors Use of GI Bill and DOD funds in the “90” instead of the

“10” Higher student outcome measures in retention,

placement and licensure 80/20

PROGRAMMATIC ACCREDITORS WITH PENDING LEGISLATION Accreditation Commission for Acupuncture and Oriental Medicine American Bar Association American Culinary Federation Ed. Foundation Accrediting Commission American Dental Association Commission on Dental Accreditation Accreditation Council for Occupational Therapy Education American Veterinary Medical Association Council on Education Commission on Accreditation of Allied Health Education Programs Commission on Massage Therapy Accreditation Joint Review Committee on Education Programs in Radiologic Tech. National Accrediting Agency for Clinical Laboratory Sciences National Association of Schools of Art and Design National League for Nursing Accrediting Commission

VISIT THE BREAKOUT SESSION

The Regulatory Silver Lining: Internalizing the benefits hidden within the program integrity rules to increase population, maximize retention, and

improve student outcomes.

THANK YOU!

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www.educationconsultingsolutions.com