APSCU Responds to djournal.com Article

APSCU's Brian Moran, Interim CEO & President, commenting on the djournal.com article Nation's For-profit Colleges Creating Real Horror Story on October 26, 2011:

Charlie Mitchell makes an inaccurate claim that for-profit colleges are “tricking people into signing papers that will treat them to a decade of debt.” This couldn’t be farther from the truth.

It is true that college costs are climbing, pushing some students to take out more loans, which is an issue that private sector colleges and universities take seriously. But this issue is not unique to our schools. On the contrary, a new College Board study found that public and community colleges costs for the current academic year increased more than 8 percent, a higher rate than at private colleges and universities. And private sector schools receive no direct financial support from state governments.

Mitchell also recycles the statistic that students at private sector schools account for half the loans in default. However, this argument is misleading. For the most recent year, 2009—a year beset by a woeful economy--defaults by PSCU students accounted for approximately .005 of all students in higher education. Meanwhile, our schools serve a non-traditional population that does not have as many resources, and therefore, is more likely to default. In reality, rates of loan default of lower-income students at PSCUs are nearly the same as rates of lower-income students at community colleges and four-year colleges.

As even Mitchell contends, private sector schools “do some people some good.” The truth is, our schools provide almost four million, often non-traditional, students like single moms, veterans and working adults, with invaluable advancement opportunities. The Department of Education recently found that graduates of four-year private sector colleges and universities were employed in higher percentages than graduates of either public or private non-profit universities. Mitchell should re-evaluate the record. The only thing our educators are treating our students to is the opportunity for advancement.

APSCU responds to thenorthwestern.com editorial

A response to thenorthwestern.com editorial: Economy has dire consequences on student debt on October 20th, 2011.

We agree that excessive debt is a bad thing for borrowers, communities and economies. But a few points of order and a bit of context will help your readers better understand the situation:

• Student loan debt now exceeds credit card debt in part because borrowers are using their student loans to fund living expense purchases. The Department of Education does not limit the types of expenditures that may be made using student loans, and the government’s student loan interest rates charged are often lower than commercial bank credit card interest rates. What's wrong with this picture?
• Rising college debt may, as you say, ring like an advertisement for community college to some students, but not all. A recent report found that federal, state and local taxpayer dollars total $3 billion over five years to cover the education cost of community college dropouts. Taking nothing away from Fox Valley Technical College or Moraine Park Technical College, their graduation rates, better than most of their peers, still lag the graduation rates of two-year career college programs. Studies show that program completion rates help determine student loan repayment rates.
• Contrary to the assertion that for-profit schools are "unproven," our schools prove themselves everyday with outcome metrics like graduation and placement. Seventy percent of graduates from nationally accredited career colleges are placed in-field, even in a tough economy.
• Looking at all student borrowers, 91 percent repay their loans. Career college student borrowers represent 28 percent of all borrowers going into repayment. Of the nine percent of all borrowers who default, career college student borrowers represent 48 percent or four percent of all borrowers. This percentage of students who default represents the fact that a majority of career college students are of lower socioeconomic status: independent career college students have an annual family income of less than $40,000.

Brian Moran
Interim President and CEO
Association of Private Sector Colleges and Universities

APSCU Responds to Short Sellers

"Can’t think of a more predatory business? Take a look in the mirror, Jim. Short sellers like Chanos have been talking down private sector colleges and universities for two years. Not because the education is bad, but because the profits of selling short are good. The claim that PSCU degrees are worthless is simply not supported by the observable facts. Listen to PSCU students and graduates, not short sellers, at http://www.youtube.com/ccamedia1."

Brian Moran, Interim President and CEO of APSCU, commenting on the article For-Profit Education Sector Drops; Chanos Calls It “A National Shame” from Barron's on October 17, 2011.

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"Can for-profit institutions grow while their reputations sink?  Unlikely.  More likely is the motivation of short-sellers and their fellow travelers to talk down for-profit institutions--the impact on students, families, communities or the economy be damned.   These “analysts” have turned the business of trash talk into personal gold.  Are for-profits “notorious” for being unable to place their graduates?  Despite a tepid economy, nationally accredited institutions place 70 percent of their graduates.  Moreover, graduates of four-year private sector colleges and universities (PSCUs) were employed in higher percentages than graduates of either public or private non-profit universities, according to a recent study by the U.S. Department of Education.  Almost four million students are sitting in our classrooms or attending our classes online today, working on a better future, just like their counterparts in traditional higher education.  The only difference?  Traditional students do not have short sellers seeking to subvert their efforts at skills attainment and a better life."

Brian Moran, Interim President and CEO of APSCU, commenting on the article Are For-Profit Colleges Worthy of Shorting? from MSN Money on October 12, 2011.

Response to The New York Times Editorial

In response to The New York Times editorial, A Broader G.I. Bill on October 2, 2011.

Buyer beware, the New York Times advises in an editorial targeting GI bill recipients attending private sector colleges and universities (PSCUs). Speaking of old adages, what about "Don’t believe everything you read in the newspaper?" Such as the editorial's presumption that our schools do not provide a quality education. That bias could be dispelled by visiting a few PSCUs and talking to military service and veteran students, not just parroting the partisan Senate Health, Education, Labor and Pensions (HELP) Committee findings. A few cases in point:

• PSCUs do not "snap up" a disproportionate share of GI bill dollars. Private institutions, whether non-profit or for-profit, cost students more than do public institutions, which enjoy generous taxpayer subsidies. Once the cost of the education is taken into consideration together with the enrollment there is virtually no difference between the two types of private institutions in terms of the ratio of students to benefits, although not surprisingly that ratio is higher than for public institutions.
• While charged with "dismal graduation rates and dubious curriculums," the reality is that “apples to apples” comparisons of at-risk student populations at PSCUs and other types of institutions show that our schools actually do better at graduating students. Or to come at the problem from a different perspective, just look at the graduation rate of community colleges, America's public policy solution for educating non-traditional students: 21 percent. Can we spell unsatisfactory? Meanwhile, two-year PSCU programs graduate 60 percent of students and most of our students find in field employment—the whole point of going to school in the first place. Dubious indeed.
• Recycling the Senate HELP Committee charges, the Times notes that eight large PSCUs saw over 409,000 degree seeking students drop out within a year of enrolling. With approximately 1.25 million enrollments combined, this constitutes a rate of 39 percent. While every true drop out is lamentable, many students “drop” and return for various reasons, including economic hardship, job and schedule changes, family responsibilities and other "life happens" situations. Also, it’s worth noting the public school dropout rate is 44 percent. Context is all.
• Many critics, including Holly Petraeus, are throwing the 90-10 regulation around as the rationale for PSCUs seeking to serve GI Bill eligible students. The accusation is wrong. Most PSCUs receive far less than 90 percent of their revenue from Title IV sources and are not in danger of exceeding the statutory limit. In fact, two-thirds are at 79 percent or lower. Military serving students are naturally attracted to PSCU education because it is flexible, career-focused and populated largely with older, more “cut to the chase” students. Moreover, while 90-10 relates to federal student loans and grants, the GI Bill is an earned benefit. Telling a military serving or veteran student to attend one type of school versus another would be like telling that person to shop at Kroger not Safeway. Can soldiers and sailors serve their country but not select their college?

The Veterans Administration says it will take a closer look at institutions serving more than 300 GI Bill students and we welcome their review. PSCUs already stand up to scrutiny by federal and state regulators and accrediting agencies. But while doing so, be sure to bring the same level of scrutiny to other types of institutions serving GI Bill students. Meanwhile, let’s not do a disservice to 150,000 service members and veterans attending PSCUs by denigrating their education. Instead, get the facts. Start by visiting our schools and talking to our military serving and veteran students.

Brian Moran
Interim President and CEO
Association of Private Sector Colleges and Universities