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Saturday, January 26, 2019

Deceived by DeVry

Subprime DeVry University Continues to Deceive Consumers
In 2019, DeVry University continues to deceive consumers through its DeVry website and online recruiting. As a subsidiary of Cogswell Education and Palm Ventures, a shoe-string operation in comparison to its previous parent company, matters could get worse. This briefing illustrates some of Devry’s current deceptive practices.

Lack of Transparency Used For Location Bait and Switch 
As a selling tool, DeVry University claims to have more than 45 convenient locations. However, it has closed about 50 campuses and learning sites between 2011 and 2019. Closures have occurred in cities throughout the U.S., including Pittsburgh, Detroit, Houston, Indianapolis, Memphis, Milwaukee, Minneapolis, Portland (OR), Seattle, St. Louis, and Tampa. DeVry’s campus closing determinations have been far from transparent, even to employees
In January 2018, several DeVry schools we believed were planned for closure remained on the “Find a Location Nearest You” map. These locations included Anaheim, Bakersfield, Cherry Hill, Colorado Springs, Dayton, Oakland, Oklahoma City, and Palmdale. By July 2018, all of of these learning locations were reported to the US Department of Education as closed schools. While these locations have been removed from DeVry’s map, prospective students had been led to believe that the locations existed.
Typically, the school closing process, known as “teach out,” takes 12-18 months. But in the case of DeVry’s closings, teach outs have occurred with less warning, leaving students and teachers little time to react to their campus closings. This lack of transparency has also allowed DeVry to sell its convenient locations even as it plans to close campuses that may be closest to prospective students. With a recent history of campus closings and the sale of DeVry to Cogswell Education, we anticipate several additional closings of “convenient” but unprofitable learning locations that may already be slated for closure.

Financial Aid Bait and Switch
DeVry has advertised a variety of loan options, including Federal Direct Loans, Federal PLUS Loans, Perkins Loans, and private student loans.
Although DeVry provides a list of potential lenders for private student loans, interest rate information does not appear to be readily available from the site.
When consumers use the Department of Education's College Navigator to get the net price for DeVry, they are redirected to a DeVry lead generator.
Pricing inconsistencies exist. One anonymous DeVry insider said this about the pricing:
There are three completely different total program costs potentially given to prospective students and differing lengths of the programs."
"DeVry’s admissions advisor’s cost calculator used to sell DVU on the phone, shows one amount. The website’s tuition chart lists something totally different, and finally the academic catalogue lists a third completely different figure with students."
"Also most admissions advisors are telling prospective students it is possible to complete a bachelor’s degree in 2 years 8 months! Then Student Finance tells students the truth that its 4 years at best due to lack of course availability and practicality (not taking 20 credit semesters). The catalogue info backs up Student Finance."
"I can’t understand how DOE or someone hasn’t caught that yet. You could call an advisor today go through their admissions planning and get cost 1, then look in the website tuition chart for 2, then look in the catalogue for a 3rd totally different cost and time est. your advisor just told you."
Former DeVry students owe more than $12 billion in student loan debt. The 5-year student loan default rate at DeVry is 43 percent. 

TechPath and Other Claims about Cutting Edge Technology
DeVry leads its potential customers to believe they will be learning innovative skills using cutting edge technology. DeVry advertises its TechPath program, a “distinctive learning approach that grew out of the understanding that students need a different kind of education to prepare them for a world that’s tech-intent, constantly changing and connected as never been through the digital mesh.”
DeVry insiders, however, have reported that campuses have not kept up with technology. And online teaching may be counterproductive for many students.
Brookings Institution Research indicates that the average DeVry University student takes two-thirds of his or her courses online with negative effects on course GPAs and persistence.

Decline in Educational Quality
Teaching staff have reported that educational quality has declined significantly as online class sizes increased. One former instructor stated:

“And, with the cap removed, faculty were teaching 40 or more students in online classes in a cultural contest that promoted the student to customer, obviating any faculty authority to establish rules and at times, even basic human decency. The ax, ever ready to fall on our necks, had us all rather desperately seeking other employment, while doing all we could to "persist" (pass) students with the highest possible grades, futilely hoping to preserve our ECE (student evaluation) scores. Students who lacked skill, who couldn't even submit work, their backs to the wall, often lashed out verbally and in the evaluation process. A student caught plagiarizing could get pay back at evaluation time, and they did….”

A former instructional designer who worked at DeVry more than five years added that "You will not have a voice...DeVry "used to be innovative and desired to push the edges of online education courses with creative solutions to interactivity...but leadership changed and bean counters began shaving copper at the downfall of the student learning experience...such a sad demise from the glory days."

DeVry Claims to be Military Friendly 

DeVry enrollment representatives claim that DeVry is military friendly, and the website states “[f]rom training Army Air Corps instructors on electronic devices in the 1940’s to being one of the first schools approved to accept the original G.I. Bill following WWII, we’ve been education and supporting America’s military personnel and the veteran community for decades.”

However, VA’s GI Bill Comparison Tool reveals more than 200 student complaints, as well as a caution warning related to the recent Federal Trade Commission settlement and how the school is operating under Heightened Cash Monitoring.

While DeVry campuses claim to offer various veterans programs, including VetSuccess on Campus, 8 Keys to Veteran Success, and a Student Veteran Group, one DeVry employee stated that "Students are tossed around by an organization that doesn't care nor have a clue of what it's doing. Disabled Veterans ADA Accommodations are not properly managed or enforced."

Wednesday, November 27, 2024

List of Schools with Strong Indicators of Misconduct, Evidence for Borrower Defense Claims

Here (below) is a list of schools where there are strong indicia of misconduct, per the Department of Education and/or the Department of Justice. 

Student loan debtors who have attended these schools, and believe they were defrauded, are encouraged to file Borrower Defense to Repayment claims if they haven't already. 

More than 750,000 Borrower Defense fraud claims have been filed, and tens of thousands have resulted in debt forgiveness. Folks can also join the r/BorrowerDefense group on Reddit for support and guidance.  

Alta Colleges, Inc. (Westwood)

  • Westwood College

American Commercial Colleges, Inc.

  • American Commercial College

American National University

  • American National University

Ana Maria PiƱa Houde and Marc Houde

  • Anamarc College

Anthem Education Group (International Education Corporation)

  • Anthem College
  • Anthem Institute

Apollo Group

  • University of Phoenix
  • Western International University

ATI Enterprises

  • ATI Career Training Center
  • ATI College
  • ATI College of Health
  • ATI Technical Training Center

Baker College

B&H Education, Inc.

  • Marinello School of Beauty

Berkeley College (NY)

  • Berkeley College

Bridgepoint Education

  • Ashford University
  • University of the Rockies

Capella Education Company (Strategic Education, Inc.)

  • Capella University

Career Education Corporation

  • American InterContinental University
  • Briarcliffe College
  • Brooks College
  • Brooks Institute
  • Collins College
  • Colorado Technical University
  • Gibbs College
  • Harrington College of Design
  • International Academy of Design and Technology
  • Katharine Gibbs School
  • Le Cordon Bleu
  • Le Cordon Bleu College of Culinary Arts
  • Le Cordon Bleu Institute of Culinary Arts
  • Lehigh Valley College
  • McIntosh College
  • Missouri College of Cosmetology North
  • Pittsburgh Career Institute
  • Sanford‐Brown College
  • Sanford‐Brown Institute
  • Brown College
  • Brown Institute
  • Washington Business School
  • Allentown Business School
  • Western School of Health and Business Careers
  • Ultrasound Diagnostic Schools
  • School of Computer Technology
  • Al Collins Graphic Design School
  • Orlando Culinary Academy
  • Southern California School of Culinary Arts
  • California Culinary Academy
  • California School of Culinary Arts
  • Pennsylvania Culinary Institute
  • Cooking and Hospitality Institute of Chicago
  • Scottsdale Culinary Institute
  • Texas Culinary Academy
  • Kitchen Academy
  • Western Culinary Institute

Center for Employment Training

  • Center for Employment Training

Center for Excellence in Higher Education (CEHE)

  • California College San Diego
  • CollegeAmerica
  • Independence University
  • Stevens‐Henager

Corinthian Colleges, Inc.

  • American Motorcycle Institute
  • Ashmead College
  • Blair College
  • Bryman College
  • Bryman Institute
  • CDI College
  • Duff's Business Institute
  • Eton Technical Institute
  • Everest
  • Everest University Online
  • Everest College Phoenix
  • Florida Metropolitan University
  • Georgia Medical Institute
  • Heald College
  • Kee Business College
  • Las Vegas College
  • National Institute of Technology
  • National School of Technology
  • Olympia Career Training Institute
  • Olympia College
  • Parks College
  • Rochester Business Institute
  • Sequoia College
  • Tampa College
  • Western Business College
  • WyoTech

Computer Systems Institute

  • Computer Systems Institute

Court Reporting Institute, Inc.

  • Court Reporting Institute

Cynthia Becher

  • La' James College of Hairstyling
  • La' James International College

David Pyle

  • American Career College
  • American Career Institute

Delta Career Education Corporation

  • McCann School of Business & Technology
  • Miami‐Jacobs Career College
  • Miller Motte Business College
  • Miller‐Motte College
  • Miller‐Motte Technical College
  • Tucson College

DeVry

  • American University of the Caribbean
  • Carrington College
  • Chamberlain University
  • DeVry College of Technology
  • Devry Institute of Technology
  • DeVry University
  • Keller Graduate School of Management
  • Ross University School of Veterinary Medicine
  • Ross University School of Medicine

EDMC/Dream Center

  • Argosy University
  • The Art Institute (including The Art Institute of Atlanta, The Art Institute of California, and more)
  • Brown Mackie College
  • Illinois Institute of Art
  • Miami International University of Art & Design
  • New England Institute of Art
  • South University
  • Western State University College of Law

Education Affiliates (JLL Partners)

  • All‐State Career School
  • Fortis College
  • Fortis Institute

Edudyne Systems Inc.

  • Career Point College

Empire Education Group

  • Empire Beauty School

Everglades College, Inc.

  • Everglades University
  • Keiser University

FastTrain

  • FastTrain

Full Sail University

Globe Education Network

  • Globe University
  • Minnesota School of Business

Graham Holdings Company (Kaplan)

  • Bauder College
  • Kaplan Career Institute
  • Kaplan College
  • Mount Washington College
  • Purdue University Global

Grand Canyon Education, Inc.

  • Grand Canyon University

Infilaw Holding, LLC

  • Arizona Summit Law School
  • Charlotte School of Law
  • Florida Coastal School of Law

International Education Corporation

  • Florida Career College
  • United Education Institute

ITT Educational Services Inc.

  • ITT Technical Institute

JTC Education, Inc.

  • Gwinnett College
  • Medtech College
  • Radians College

Laureate Education, Inc

  • Walden University

Leeds Equity Partners V, L.P.

  • Florida Technical College
  • National University College
  • NUC University

Liberty Partners

  • Concorde Career College
  • Concorde Career Institute

Lincoln Educational Services Corporation

  • International Technical Institute
  • Lincoln College of Technology
  • Lincoln Technical Institute

Mark A. Gabis Trust

  • Daymar College

Mission Group Kansas, Inc.

  • Wright Business School
  • Wright Career College

Premier Education Group L.P.

  • American College for Medical Careers
  • Branford Hall Career Institute
  • Hallmark Institute of Photography
  • Hallmark University
  • Harris School of Business
  • Institute for Health Education
  • Micropower Career Institute
  • Suburban Technical School
  • Salter College

Quad Partners LLC

  • Beckfield College
  • Blue Cliff College
  • Dorsey College

Remington University, Inc. (Remington College)

  • Remington College

Southern Technical Holdings, LLC

  • Southern Technical College

Star Career Academy

  • Star Career Academy

Strayer University

Sullivan and Cogliano Training Center, Inc.

  • Sullivan and Cogliano Training Centers

TCS Education System

  • Chicago School of Professional Psychology

Vatterott Educational Centers, Inc.

  • Court Reporting Institute of St Louis
  • Vatterott College

Wilfred American Education Corp.

  • Robert Fiance Beauty Schools
  • Robert Fiance Hair Design Institute
  • Robert Fiance Institute of Florida
  • Wilfred Academy
  • Wilfred Academy of Beauty Culture
  • Wilfred Academy of Hair & Beauty Culture

Willis Stein & Partners (ECA)

  • Brightwood Career Institute
  • Brightwood College
  • New England College of Business and Finance
  • Virginia College

Friday, July 20, 2018

Subprime College Crash Continues Under the Radar












The subprime college crash continues for the seventh consecutive year with little attention from the government or media.

Subprime is a more appropriate name than for-profit, because several non-profit schools offer limited value at a high price. Campus closings, steep decreases in enrollment, low student loan repayment rates, low graduation rates, and low returns on investment are strong  indicators of "subprime."

University of Phoenix, now part of Apollo Global Management, continues to close campuses. In total, they have closed more than 450 campuses and learning sites. I expect UoPX to close half of their remaining campuses in the next 12-18 months.

Art Institutes are closing most of their campuses in 2018 after being taken over by Dream Center Education Holdings.  David Halperin has been covering the story in the Huffington Post, but it has received little attention.  Argosy University, another system of DCEH schools, is teaching out at least 14 campuses.




DeVry University will be closing more campuses after their parent company, Adtalem, dumped their brand and practically gave it away to Cogswell Education/Palm Ventures. They have already closed eight sites in 2018. Over the past few years, DeVry has closed 44 of their 90 learning sites.

National American University (NAUH) is in major trouble. Their stock price has been struggling at $1 a share, making it vulnerable to delisting. T. Rowe Price is keeping it propped up. NAUH recently mortgaged their real estate for $8M.



Zenith (ECMC) is completely out of subprime college ownership. The former Corinthian Colleges was propped up by the non-profit student loan company with help from the government.

Kaplan University is now operating as Purdue University Global. But the school remains a subprime effort despite fraudulent claims that it offers a "world-class education."



Ashford University (Bridgepoint) continues to profit amidst state and federal investigations, but enrollment is down as it pursues non-profit status.

Strayer is buying out Capella. The new company is still STRA, but it's known as Strategic Education.