Corporate, Cost of Education, Domestic, Education Quality, Ethics, For-Profit, Friend, Fraud, or Fishy, Investors, Legislation, Minorities, equity, and access, Opinion, Public education, Recruitment, Required, Retention Rates, Students, Unemployment, University & College - Written by on Tuesday, November 22, 2011 7:59 - 2 Comments

Message to Kaplan’s Andrew Rosen: Don’t Whine, Innovate

by Kaplan International Colleges via Flickr under CreativeCommons

This report from the more left-leaning Campus Progress comes from a meeting at the right-leaning American Enterprise Institute think tank called “Rebooting Higher Education”, discusses for-profit colleges and summarizes the view of Kaplan University CEO Andrew Rosen. He defends the role of for-profit institutions in society. Jon Christian, writing in Campus Progress, said the event “focused more on buffing the image of for-profit institutions than on a course in change for the industry.” Christian writes that Rosen said regulators should be focusing on traditional colleges offering irrelevant degrees rather than on high student debt and default rates at for-profit schools.

“It is in the nature of our system to be skeptical of new entrants,” Rosen said. “That doesn’t mean private sector schools are perfect. They aren’t; they’ve made mistakes.”

Rosen compared criticism of for-profit institutions–which he called “disruptive innovators”–to the resistance encountered over a century ago by land grant universities, including Cornell and Rutgers.

We disagree with Rosen’s point on the following grounds. Traditional institutions are largely geared to students who are more prepared for college and the modern workplace. For-profit schools, online schools and community colleges, at present, are more geared toward students who have struggled in high school, didn’t attend college out of high school for economic or academic reasons, or are working adults who are now returning to school. For all these reasons, for-profit schools have a different clientele, a different mandate and responsibility than traditional colleges in the U.S. The also deserve greater regulation and different regulation as their students are more vulnerable. Free marketeers cannot and will not turn this industry into a sub-prime mortgage scandal Part II.

Rosen argued that the higher education system should be evaluated based on learning outcomes, access, affordability and accountability–themes developed in his 2011 book, “Change.edu.” He also worried that highly-regarded universities are squandering resources on posh residential facilities, hot tubs, and lobster nights.

“Harvard’s endowment is $1.5 million per students,” Rosen said. “Isn’t it time for Harvard to start asking, ‘Can we make our educational bounty available to more students?’”

The for-profit colleges immaturely want to have their cake and eat it too: to be seen as unique from traditional colleges… but then to be compared in the same breath to them. We believe Rosen is doing the industry a dis-service by his comparisons of Harvard, land-grant schools and for-profits. The American higher education system is a multi-tiered ecosystem. For-profits are doing some great work in their expanding piece of the pie. But many of them have also proved to be poor managers and unethical actors in several ways that harm students and taxpayers. If they truly are free-market capitalists, they should make for-profits stop accepting government/tax-payer money completely. That will never happen. Hypocrisy is too much fun. And government hand outs are just too great.  So they should stop spending so much time and money whining about their place in Washington and the higher education world. Rather, they should spend a greater bulk of their money and time improving their internal technologies, standards and quality of education.

via Campus Progress, full story reprinted below

http://campusprogress.org/articles/kaplan_ceo_for-profits_schools_are_disruptive_innovators/

Full story below available at www.Campus Progress.org

This material [article] was created by Campus Progress.  It is an affiliate of the Center for American Progress in Washington D.C.

Kaplan CEO: For-Profits Schools Are ‘Disruptive Innovators’

Posted Friday, November 18, 2011 by Jon Christian

Kaplan University’s CEO Andrew Rosen defended the role of for-profit institutions at an event hosted this week by the American Enterprise Institute. But the event, billed as “Rebooting Higher Education,” focused more on buffing the image of for-profit institutions than on a change in course for the industry.

Rosen and the panel focused on what was framed as increasingly irrelevant degrees offered by traditional institutions, rather than on high student debt and default rates at for-profit schools.

“It is in the nature of our system to be skeptical of new entrants,” Rosen said. “That doesn’t mean private sector schools are perfect. They aren’t; they’ve made mistakes.”

Rosen compared criticism of for-profit institutions–which he called “disruptive innovators”–to the resistance encountered over a century ago by land grant universities, including Cornell and Rutgers.

The for-profit education sector has come under fire in recent years for aggressively pursuing potential students, high default rates and student debt, and for reporting fraudulent post-graduation job placement rates. Twenty-two percent of students who set out to get a four-year degree at a for-profit college succeeded in 2008, according to a 2010 report [PDF].

(Read more about for-profit accountability at Campus Progress)

Rosen argued that the higher education system should be evaluated based on learning outcomes, access, affordability and accountability–themes developed in his 2011 book, “Change.edu.” He also worried that highly-regarded universities are squandering resources on posh residential facilities, hot tubs, and lobster nights.

“Harvard’s endowment is $1.5 million per students,” Rosen said. “Isn’t it time for Harvard to start asking, ‘Can we make our educational bounty available to more students?’”

Rosen also disputed the staggering figure that 47 percent of student loan defaults are accounted for by for-profit college students. For-profit students, he said, were responsible for a lower percentage of total defaulted dollars.

“The percent of defaulted dollars is pretty much roughly proportional [at for-profit colleges],” he claimed during the event.

By proportion of students, the default rate in 2010 at public colleges was 7.3 percent, and 4.7 percent at private, nonprofit institutions.

The panel included Career Education Corporation’s Diane Auer Jones, the Chronicle of Higher Education’s Jeff Selingo, and White House Domestic Policy Council’s Zakiya Smith–none of whom, including Smith, pressed Rosen on debt or default rates.

Some critics do see a role for for-profit colleges in the higher education system.

Christopher Beha, an associate editor at Harper’s Magazine who enrolled at the for-profit University of Phoenix for an undercover investigation, concluded that while there is a niche in the higher education system for for-profit colleges, it is not working well for students to force them into a traditional, four-year model.

The American Enterprise Institute is a nonprofit think tank based in Washington, D.C.

Jon Christian is a staff writer with Campus Progress. Follow him on Twitter @Jon_Christian.

via Campus Progress … http://campusprogress.org/articles/kaplan_ceo_for-profits_schools_are_disruptive_innovators/



2 Comments

You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Andy Rosen
Nov 23, 2011 10:56

I suspect if you read my book, Change.edu, you’d find we have more in common than you think. You talk about the difference between “traditional schools” and for-profits — but the point I make in the book (and made at the conference you mention) is that the land-grant schools like the University of California and Purdue were scorned early in their development precisely because they sought to teach students who were not then considered “college material.” At the time, it was farmers and “mechanics” from non-Northeastern states who were deemed inappropriate for higher education; today the same is said about working adults and low-income students. Our economy depends upon our finding good educational alternatives for a much broader segment of society than our traditional system can serve. I argue that private sector (for-profit) colleges are part of the range of alternatives, along with community colleges, state schools, and others, who can effectively meet that need. Given the amounts of taxpayer money at stake, an appropriate regulatory structure is essential in this market. That said, the debate should include not just the mis-steps of private sector education — and there certainly have been some — but also the fact that for-profits are delivering much better graduation rates at a fraction of the taxpayer expense for comparable student populations, compared to the rest of American higher education. If the U.S. is to maintain its economic primacy in the decades ahead, finding ways to educate more students at reasonable cost will be essential. I invite you to read the book and see if you agree or disagree with the solutions I propose.

Paul Glader
Nov 25, 2011 19:12

Thanks for your comment, Andy. We would post the entire contents of your speech if you send them to me at Paul@WiredAcademic.com. And I will plan to pick up a copy of your book.

Leave a Reply

Comment

Campus Buzz


We welcome Tips & Pitches



What you need to know weekly:
The WiredAcademic newsletter.


* = required field

Latest WA Original Features






  • Twitter feed loading




Paul Glader, Managing Editor
@paulglader

Eleni Glader, Policy Editor

Elbert Chu, Innovation Editor
@elbertchu

Ravi Kumar, Reporter & Social Media Editor
@ravinepal

Derek Reed, Reporter
@derekreed

Brock Buesing, Contributor










APEI23.05  chart-0.45  chart -1.91%
APOL9.995  chart+0.000  chart +0.00%
AAPL150.27  chart-0.07  chart -0.05%
BPI13.51  chart-0.16  chart -1.17%
CAST0.0025  chart+0.0000  chart +0.00%
CECO9.43  chart+0.10  chart +1.07%
COCO0.0139  chart+0.0000  chart +0.00%
CPLA87.95  chart-0.10  chart -0.11%
DV36.90  chart-0.05  chart -0.14%
EDMC0.0053  chart-0.0017  chart -24.29%
ESI0.358  chart+0.000  chart +0.00%
GOOG972.92  chart+4.77  chart +0.49%
LINC3.14  chart-0.07  chart -2.18%
LOPE76.90  chart-0.95  chart -1.22%
PEDH0.142  chart+0.000  chart +0.00%
PSO8.31  chart+0.00  chart +0.00%
SABA8.81  chart+0.00  chart +0.00%
SCHL42.15  chart-1.84  chart -4.18%
STRA92.48  chart-1.75  chart -1.86%
WPON/A  chart+0  chartN/A
2017-07-21 16:00


Cost of Education, Domestic, Education Quality, Ethics, For-Profit, Regulatory, Required, Students, University & College - Mar 11, 2012 21:17 - 0 Comments

Heard: Senators On Warpath Against For-Profit College Military Push

More In For-Profit


Blended Learning, Domestic, Elementary / Primary / Junior, Flipped Classrooms, High school / Secondary 2, International, Open Source Education, Required, School teachers, Startups, Students, Technology - Mar 12, 2012 19:04 - 0 Comments

Big Weekend For Sal Khan; Appears On 60 Minutes & Launches Free iPad App

More In Technology


Domestic, Education Quality, For-Profit, Friend, Fraud, or Fishy, Required, University & College - Feb 10, 2012 16:36 - 0 Comments

Heard: NYC Warns Against For-Profit Adult Education Scams

More In Friend, Fraud, or Fishy