Responses, Readings, Links
Post-Broadcast Letters of Response From the Colleges Pre-Broadcast Letters of Response From the Colleges Articles, Reports and DocumentsHomeless Shelters Cry Foul on For-Profits’ Tactics
Post-Broadcast Letters of Response From the Colleges/Universities
"The University of Phoenix Responds to FRONTLINE"
Their response includes a section called 'The Facts,' and a 'Timeline' dealing with the matter of the university's refusal to give FRONTLINE an interview.
· Here is FRONTLINE's response to 'The Facts.'
· Here is correspondent Martin Smith's April 23, 2010 letter to the university, which shows key dates that were omitted in Phoenix's 'Timeline' on the interview issue.
"Career College Association Calls College, Inc. a Timely Discussion of Sector’s Importance"
The group, representing postsecondary for-profit schools, published this statement the day after FRONTLINE's broadcast. [Note that this response is now available at the Association of Private Sector Colleges and Universities, formerly the Career College Association.]
"'College, Inc.' -- Generating Conversations"
This response is from the Higher Education Management Group, a "networking and information sharing [group] for management professionals working in the higher education industry."
"ACICS -- FRONTLINE's College, Inc."
Listen to the Accrediting Council for Independent Colleges and Schools' briefing regarding "issues raised in the documentary, including student debt, recruitment practices and gainful employment."
Pre-Broadcast Letters of Response From the Colleges/Universities
Four of the biggest players in the for-profit higher education market declined to be interviewed for this program. However, they did respond in writing to queries from correspondent Martin Smith.
Apollo Group Inc., parent company of University of Phoenix
EDMC (Education Management Corporation)
*[Editors' Note: This letter to Martin Smith concerns his interview with Career College Association (CCA) president Harris Miller and the "factual inaccuracies and mischaracterizations of our company" that Bridgepoint alleges is contained in the interview. (CCA had shown Bridgepoint the part of Miller's interview transcript about Bridgepoint.) In one part of the interview, Martin and Miller discuss whether colleges can pay recruiters, such as Tami Barker, a former enrollment adviser at Ashford University, based on the number of students they enroll. So-called incentive compensation was banned by Congress in 1992. But 10 years later the Department of Education issued rules allowing incentive pay under certain conditions. One of the main conditions is that pay increases (or decreases) for recruiters shouldn't be based solely on the number of students they recruit or enroll.
On another point, Michael Clifford did not misrepresent his relationship with Bridgepoint to FRONTLINE. He founded the predecessor to Bridgepoint, TeleUniversity, and in his interview with Martin Smith, he said, among other things: "That company morphed into a very successful public company called Bridgepoint Education, which I had very little to do with, except, I mean, the predecessor." At other points in the interview he made it clear that he neither runs nor speaks for Bridgepoint.]
Articles, Reports and Documents
Congressional Letter on Gainful Employment [PDF]
View this March 22, 2010 letter to Sec. Arne Duncan, which is signed by 18 members of Congress. The letter urges Sec. Duncan "not to move forward with [the Department of Education's] suggested approach on gainful employment."
Obama Plans New Rules as For-Profit Colleges Mobilize for Fight
Bloomberg Businessweek's overview of the battle surrounding proposed tougher rules, soon to be released for public comment, for publicly traded higher education institutions. (May 4, 2010)
Going Ahead with Gainful Employment
An explanation of the steps taken to date by the Department of Education to measure and regulate gainful employment. The "goal is to determine which programs are really preparing students for gainful employment and not sinking graduates into chasms of debt." (Inside Higher Ed, April 21, 2010)
An April 21, 2010 letter from Harris Miller to Secretary of Education Arne Duncan
Miller, chief Washington lobbyist for for-profit schools, addresses the issue of proposed new regulations on "gainful employment" that would target those programs that leave graduates with excessive debt in comparison to likely earnings.
Identifying Students with the Most Debt
The Bucks blog from The New York Times summarizes the College Board's recent findings on student debt and cites the high numbers from for-profit schools: "... 65 percent of them have 'an average of $11,300 in private debt on top of federal student loans.'" The College Board's full report is here [PDF]. (April 26, 2010)
Examining University of Phoenix Recruitment
NPR's Marketplace and ProPublica's November 2009 joint report on the University of Phoenix's marketing and recruitment tactics. A link to part one from Marketplace is above; read or listen to part two here. ProPublica's extended written piece can be found on its Web site.
An Enrollment Surge at For-Profit Colleges, 1998-2008
State-by-state map by The Chronicle of Higher Education that draws on Department of Education data. (Feb. 7, 2010)
Your Taxes Support For-Profits as They Buy Colleges
A March 2010 article by Bloomberg News editor at large Daniel Golden who writes almost exclusively about the for-profit education industry. Also read his reports on
how recruiters target the homeless population; the SEC's 2009 probe of the University of Phoenix; and the increase in for-profit enrollment by active members of the military.
The Subprime Student Loan Racket
The Washington Monthly's investigation into how the publicly traded higher-ed sector has been able to profit, "loading up millions of low-income students with debt they'll never pay off." (November/December 2009)
For-Profit Colleges Change Higher Education's Landscape
An article published by The Chronicle of Higher Education, offering background on the rise of the for-profit sector. (Feb. 7, 2010)
In Hard Times, Lured Into Trade School and Debt
A New York Times article on for-profits' recruitment of students for training or trade programs, such as automotive repair and culinary arts. It also analyzes the schools' reliance on federal Pell grants and techniques used by admissions counselors. (March 13, 2010)
January 2010 Survey -- Online Education in the U.S.
The Sloan Consortium's analysis and data on online enrollment's growth. Their organization is committed to the integration of online education into mainstream higher ed. [PDF]
Homeless Shelters Cry Foul on For-Profits’ Tactics
Editor's Note (7/9/10): It has come to our attention through a ProPublica investigation into for-profit colleges and short sellers that one of the two letters published below to Secretary of Education Arne Duncan -- the one signed by 20 shelter officials from several states -- was instigated by someone working for an investment firm that was paying her to investigate for-profit schools. It has been reported that financial firms involved in short selling have had a longstanding interest in getting out negative news about the for-profit higher education sector.
FRONTLINE was provided the letters by a short seller who was interviewed for our College Inc. report. Before publishing, we contacted people to verify the authenticity of both letters. For the group letter, we contacted a few of the signatories to confirm they had signed it and it reflected their views; at the time FRONTLINE regretfully didn't go further and contact more of the signers and ask for more details about the provenance of that letter.
“Homeless Men and Women Are Being Targeted by For-Profit Schools” (June 2010)
A signed letter to Secretary of Education Arne Duncan from officials of 20 homeless shelters across several states. [PDF]
Letter From the Northeast Ohio Coalition of the Homeless (May 2010)
Urging Duncan to “...propose regulations on incentive compensation and gainful employment....to protect students from high-pressure and deceptive tactics for educational programs of little or no benefit to them...“ [PDF]