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The Scrutiny Spreads

September 23, 2010

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WASHINGTON – As the U.S. Department of Education and a Senate committee push ahead with their scrutiny of for-profit higher education, the sector may also face greater oversight from the Pentagon in the months and years ahead, if a Wednesday examination by a House of Representatives panel is any evidence.

At a hearing billed as a discussion of how the Department of Defense keeps tabs on the “quality and value” of the postsecondary institutions at which active duty members can use military tuition assistance grants, members of the Armed Services Subcommittee on Oversight and Investigations made clear that they are concerned that distance learning programs -- especially those offered by for-profit colleges -- may not be the best use of federal funds.

In fiscal 2010, said Representative Vic Snyder (D-Ark.), the subcommittee’s chairman, the Defense Department and armed services have spent a combined $580 million on military tuition assistance programs. About 40 percent of that money went to for-profit colleges, which represented 30 percent of enrollments. “Although for-profit schools have become increasingly popular, the onus is on the department, services, and Congress to ensure the rigor of their programs,” Snyder said in his opening statement. “The bottom line is we must insist that all schools that accept tuition assistance funding offer a quality education and not just a degree.”

Though Snyder said the hearing was not aimed at “trying to solve … this whole issue of the for-profit versus not-for-profit schools,” he expressed concern that for-profit colleges serving military students were not getting sufficient scrutiny, whether from the Defense Department or other government agencies.

Snyder also suggested that members of Congress consider revising the 90-10 rule guiding the sources of for-profit colleges’ revenues. As it stands, no more than 90 percent of a for-profit higher education provider’s revenues may come from the Education Department’s Title IV federal financial aid program. The regulation is designed to ensure that colleges do not depend exclusively on federal money, and the goal is for other revenues to come from students willing to pay their own money for it.

But revenues over the 90 percent mark can come from military tuition assistance and the Department of Veterans Affairs’ Post-9/11 GI Bill, which offered veterans and their families $3.58 billion in aid in 2009. “It doesn’t make any sense to me why federal military assistance isn’t counted toward the 90 percent,” he said, echoing a concern voiced by many critics of for-profit colleges in recent months.

On Aug. 4, the same day as the Senate Health, Education, Labor and Pensions Committee’s most recent hearing on for-profit colleges, Senators Dick Durbin (D-Ill.) and Jim Webb (D-Va.) wrote to the secretaries of defense and veterans affairs with their concerns that the sector “may be aggressively targeting service members and veterans, signing them up for educational programs that may bring little benefit to future employment opportunities, low graduation rates and high default rates,” they wrote.

At the hearing, Representative Walter Jones (R-N.C.) said he hoped to see greater oversight of where military tuition assistance funds were going. “We know the military deserves every opportunity the taxpayer can give him or her, especially the education,” he said. But “the taxpayer who’s picking up the bill is looking at this and saying, 'Is the soldier getting equal education if he or she can get education at a community college that offers courses for $50 [per credit] versus a for-profit university that is charging $250? … something’s not right.' ”

Jones questioned whether degrees coming from for-profit colleges were as valuable as those coming from nonprofit institutions, citing instances where employers have reported turning down substantial numbers of retired military applicants with credentials from for-profit institutions. “How do you keep the good and weed out the bad?” he said. “How can the taxpayer be assured that the military is getting a quality education and really not an education of being taken advantage of?”

Timothy R. Larsen, director of the Personal and Family Readiness Division of the U.S. Marine Corps’s Manpower and Reserve Affairs Department, said that much of the growth in for-profit colleges’ enrollment of military students was the result of the same kinds of aggressive recruiting tactics reported by civilian students. “Many times for-profit institutions would probably market themselves very well,” he said.

Though the Marine Corps requires service members to meet with academic counselors before signing up for courses and tuition assistance, “we don’t discriminate between any of the types [of institution], either for-profit, nonprofit or traditional institution.” He added: “As long as they’re accredited, we support Marines participating in those programs.”

Larsen’s Army, Navy and Air Force counterparts who testified at the hearing also echoed that reliance on accreditation, as did Robert L. Gordon, deputy under secretary of defense for military community and family policy. “We ensure, regardless of the type of institution, [that] they are accredited by the Department of Education,” he said, explaining the Pentagon’s oversight measures, in a not-quite-accurate statement since institutions are accredited by nongovernmental agencies approved by the Education Department. (And accreditors are facing their own questions.)

The Pentagon also contracts with the American Council on Education to maintain the Military Installation Voluntary Education Review (MIVER) Program, which offers third-party examinations of academic programs offered in-person on military bases. Under proposed regulations issued by the Department of Defense in August, that program would become the Military Voluntary Education Review (MVER), which would examine institutions offering courses at military installations, as well as “those institutions providing postsecondary instruction not located on the military installation and via distance learning.”

Gordon said he thinks the expanded review capacity provided by MVER will help to “ensure … quality education for our service members.”

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Comments on The Scrutiny Spreads

  • Predatory Education
  • Posted by Morse Graham , Outraged Citizen at Life Experience on September 23, 2010 at 11:15am EDT
  • There are those areas within society that must be protected from the profit oriented business influence. They include health care, education, the justice system, religion, elder care, etc.

    Active duty and returning military should not be targeted by predatory education institutions as check cashing, rent to own, payday loans etc. target the poor. These men and women have given enough!

  • ...Protect the Marine Corp?
  • Posted by Cleveramerican , Arm Chair at Ivy Wannabee on September 23, 2010 at 12:15pm EDT
  • ...Your kidding right?

    Let's protect the Marine Corp from the big-bad educational predators?

    Mr. Graham, it's the same tired assumptions and dated rhetoric all over again. Predatory For-profits forcing education on the unwitting. Most For-profits serve adults who can think for themselves. I would respectfully suggest a wider range of reading materials and analysis of varied perspectives to help you stay informed.

    My guess is the larger For-profits welcome this scrutiny. It will shine the light on their innovative, student centered focus.

    Semper Fi

  • Posted by Ray on September 23, 2010 at 1:00pm EDT
  • Let me get this straight? Our "public/non-profit" institutions are supposedly providing a stronger, better, more viable educational experience than those coming from the real world and industry? How many of you have been waited on by a History, or English Lit graduate? What kind of outcomes/results are "traditional" institutions required to show in order to continue their participation in federal programs? The answer Alex is 0!!!! God forbid we scrutinize these bastions of sloth and entitlement!!

  • Agreed
  • Posted by Robert , Champion of Education at Unnamed on September 23, 2010 at 1:30pm EDT
  • The notion of protecting an adult Marine is comical. These are grown adults who should be able to read, inquire, and scrutinize their choices, much as parents do when helping their children make a decision. Service members are afforded many opportunities and counseling that civilians are not in addition to all publicly provided material (bless those in Education Services!). This just seems to be yet another flavor of the month band wagon witch hunt in Congress. The statement about why go to a school charging $250 a credit when you can attend a community college for $50 a credit smacks of ignorance of the challenges experienced by service members at home and abroad seeking voluntary ed, and evokes a tired and played out conversation of Harvard vs. Community College. The choice of a college or university should be made in part based on needs of the students, and that institution's ability to meet those needs. Many for-profit can deliver to those needs that others cannot. Scruitinize recruitment practices (the military should be well versed in this since they have a long history of "sign here and it'll all be taken care of") and scrutinize the oversight, but dont blanket condemn all "for profit" as predatory. Where is the onus on the consumer to be informed? where's the accountability on the student as well? Will the government now be parenting as well?

  • The Conversation is Evolving
  • Posted by ...Just an Adjunct , Assoc. Director at Northeast Liberal Arts on September 23, 2010 at 2:00pm EDT
  • To Cleveramerican:

    Here is some additional information and unique analysis of the For-Profits value proposition:

    http://blog.topschoolinc.com/2010/09/21/for-profit-universities-what-exactly-are-we-debating-part-i/

    In addition to the good men and women in the armed services, For-profits serve less affluent students with all the baggage it brings. Obviously with this baggage comes higher default rates. Traditional educators don't want to discuss this. In their minds there should always be an underclass; the have's and have nots. It's academic. Instead of traditional colleges and universities taking the lead by assisting students to improve personal accountability, they turn their self indulgent backs on students and focus their attack on the very institutions who extend a hand to help - For Profits. We are side-tracked by that dirty-word (..shh, for-profit).

    If today the For-Profits cashed-in their portfolios but kept their innovative model in place and called themselves a non-profit, they would still do a far better job than we do in providing a real-world education that puts food on the table.

    As I understand it, UOP and others will simply apologize for their mistakes, put procedures in place to better inform first-generation students and then go about the business of providing access to education.

    We should follow their lead.

  • What MVER?
  • Posted by Glen S. McGhee at FHEAP on September 23, 2010 at 4:15pm EDT
  • One is left wondering, after reading the Proposed Rule, what the point of MVER ("a third-party evaluation of voluntary education programs ...") is, or, if it really exists at all -- there are no references to regulations or QA/QC procedures, studies, coverage and participation rates, etc. Maybe it only exists on paper.

    Nor are "professionally qualified personnel" or "professionally qualified, subject matter expert/program manager" defined. Sigh.

    The main concern of these rules is to maintain a system of pay-outs to institutions, and to create incentives for military involvement in higher ed.

    If you go back, one of the main policy objectives of the G.I. Bill was to transition soldiers and sailors back into mainstream society -- mentally and psychologically. Folks like Karl Menninger thought that this was going to be a problem, so they turned to social institutions, such as those found in higher ed, to address this. I wonder if that thinking continues to drive the present push, or if, in fact, the flow now runs the other way -- institutions getting their hooks into the military/government.

  • It's about time
  • Posted by ForProfit Ed on September 23, 2010 at 8:15pm EDT
  • CleverAmerican:

    Today's article in Bloomberg speaks to why we should protect Veterans (and the taxpayer).

    http://www.bloomberg.com/news/2010-09-23/veterans-failing-to-learn-show-hazards-of-for-profit-schools-under-gi-bill.html