CECU In The News:
Biden Administration Looks to Speed Student-Loan Forgiveness for Defrauded Borrowers - April 13, 2022
“That was the key issue—having to show that the student putting forward this claim would show harm on an individual basis,” said Jason Altmire, chief executive of Career Education Colleges and Universities, a for-profit school trade group.
“That was the key issue—having to show that the student putting forward this claim would show harm on an individual basis,” said Jason Altmire, chief executive of Career Education Colleges and Universities, a for-profit school trade group.
The truck-driving industry claims there's a driver shortage. But it's complicated. - April 7, 2022
Meanwhile, for-profit colleges trained 7,600 drivers last year, or 51% of all truck-driving graduates, said Jason Altmire, president and CEO of the Career Education Colleges and Universities. “There is a lot of turnover for different reasons, and we feel like we are helping with the supply of drivers,” Altmire said. “We do try to make our students aware of what that lifestyle is going to look like.”
Meanwhile, for-profit colleges trained 7,600 drivers last year, or 51% of all truck-driving graduates, said Jason Altmire, president and CEO of the Career Education Colleges and Universities. “There is a lot of turnover for different reasons, and we feel like we are helping with the supply of drivers,” Altmire said. “We do try to make our students aware of what that lifestyle is going to look like.”
New Education Department Rules on Failing For-Profit Colleges - March 24, 2022
Jason Altmire, president and CEO of Career Education Colleges and Universities, said, “Determining whether to pierce the corporate veil should be a fact-specific inquiry. When corporate parents intentionally withdraw equity or become the alter ego of the institutional subsidiary, piercing the veil may be appropriate. However, courts have long recognized that piercing the veil is not appropriate in the case of ordinary business decisions. The U.S. Department of Education should take into account all circumstances surrounding an institutional closure before taking the extraordinary step of piercing the corporate veil to reach the assets of the corporate parent.”
Jason Altmire, president and CEO of Career Education Colleges and Universities, said, “Determining whether to pierce the corporate veil should be a fact-specific inquiry. When corporate parents intentionally withdraw equity or become the alter ego of the institutional subsidiary, piercing the veil may be appropriate. However, courts have long recognized that piercing the veil is not appropriate in the case of ordinary business decisions. The U.S. Department of Education should take into account all circumstances surrounding an institutional closure before taking the extraordinary step of piercing the corporate veil to reach the assets of the corporate parent.”
The Ed Department brokered a deal on 90/10 rule changes. Here's what's inside. - March 21, 2022
"It is surprising to a lot of people in higher education that the negotiating committee reached consensus on what was probably one of the most contentious items," said Nicholas Kent, senior vice president of policy and regulatory affairs at Career Education Colleges and Universities. "I don't think that a lot of people — especially when they saw the department's opening proposal in January — thought that there was any way that the committee would reach consensus."
"It is surprising to a lot of people in higher education that the negotiating committee reached consensus on what was probably one of the most contentious items," said Nicholas Kent, senior vice president of policy and regulatory affairs at Career Education Colleges and Universities. "I don't think that a lot of people — especially when they saw the department's opening proposal in January — thought that there was any way that the committee would reach consensus."
Gainful employment proposal looks at college vs. high school grads' earnings - March 9, 2022
"We think that if there are accountability measures that they should apply to all programs and all institutions," said Nicholas Kent, senior vice president of policy and regulatory affairs at Career Education Colleges and Universities, an organization that represents for-profit institutions.
"We think that if there are accountability measures that they should apply to all programs and all institutions," said Nicholas Kent, senior vice president of policy and regulatory affairs at Career Education Colleges and Universities, an organization that represents for-profit institutions.
When colleges defraud students, should the government go after school executives? - March 1, 2022
Altmire cautions, however, "If you're going to apply accountability standards, just apply them to all schools in all sectors." Translation: Make sure for-profit trade schools aren't the only kinds of colleges held under the microscope.
Altmire cautions, however, "If you're going to apply accountability standards, just apply them to all schools in all sectors." Translation: Make sure for-profit trade schools aren't the only kinds of colleges held under the microscope.
New Study Shows Many Traditional Colleges Fail ‘Gainful Employment’ Test for Grads - February 27, 2022
“This shows that had gainful employment been applied across all sectors of higher education, the vast majority of failing programs would have been at private nonprofit and public institutions, not-for-profit institutions,” said Altmire, a Democrat and former member of Congress from Pennsylvania. “This is a reality that many advocates of accountability for all sectors of higher education have long suspected, and now we have the data to show without a shadow of a doubt that all students across all sectors of higher education need protections to ensure that the programs they’re attending give them a strong return on investment.”
“This shows that had gainful employment been applied across all sectors of higher education, the vast majority of failing programs would have been at private nonprofit and public institutions, not-for-profit institutions,” said Altmire, a Democrat and former member of Congress from Pennsylvania. “This is a reality that many advocates of accountability for all sectors of higher education have long suspected, and now we have the data to show without a shadow of a doubt that all students across all sectors of higher education need protections to ensure that the programs they’re attending give them a strong return on investment.”
For-Profit Colleges Seeking to Become Nonprofits May Face Tighter Regulations - February 16, 2022
"The reality is that these transactions happen infrequently, in part because they typically take several years for federal and state agencies and college accreditors to assess the legitimacy of the conversion," he (Nicholas Kent) added via email. "For those that allege that a for-profit college may want to transition to nonprofit status simply to benefit from public perception or to escape regulatory scrutiny, that concern could be easily addressed if we hold all institutions to the same accountability rules."
"The reality is that these transactions happen infrequently, in part because they typically take several years for federal and state agencies and college accreditors to assess the legitimacy of the conversion," he (Nicholas Kent) added via email. "For those that allege that a for-profit college may want to transition to nonprofit status simply to benefit from public perception or to escape regulatory scrutiny, that concern could be easily addressed if we hold all institutions to the same accountability rules."
Rules on for-profit colleges could hurt economy, veterans - February 16, 2022
“There is an argument to be made here that if this rule was a good rule, it would apply to all institutions, right?” said Kent about the 90/10 rule. “It’s only applied to career schools, private career schools, so, for-profit career schools, and, again, it doesn’t measure whether a student is getting a good education, what it’s measuring is whether or not the student has the ability to pay for some of that education and that’s not how we should be measuring outcomes in this country in higher education.”
“There is an argument to be made here that if this rule was a good rule, it would apply to all institutions, right?” said Kent about the 90/10 rule. “It’s only applied to career schools, private career schools, so, for-profit career schools, and, again, it doesn’t measure whether a student is getting a good education, what it’s measuring is whether or not the student has the ability to pay for some of that education and that’s not how we should be measuring outcomes in this country in higher education.”
'Gainful employment' regulations to improve college accountability are back on the table - February 14, 2022
"The ongoing rulemaking is an opportunity for the Biden administration to develop common-sense regulations that focus not on an institution’s tax status or the types of programs it offers, but whether students receive a good return on their investment," Kent said. "Resurrecting the gainful employment regulations, which would fail to protect over 75 percent of students enrolled in postsecondary education, would be a missed opportunity for this administration to protect millions of degree-seeking students attending public and nonprofit institutions.”
"The ongoing rulemaking is an opportunity for the Biden administration to develop common-sense regulations that focus not on an institution’s tax status or the types of programs it offers, but whether students receive a good return on their investment," Kent said. "Resurrecting the gainful employment regulations, which would fail to protect over 75 percent of students enrolled in postsecondary education, would be a missed opportunity for this administration to protect millions of degree-seeking students attending public and nonprofit institutions.”
For-profit college conversions get new scrutiny in US – February 4, 2022
Career Education Colleges and Universities does have some members that now hold non-profit status, said the group’s president, Jason Altmire. “I would say the lines are being blurred every day between for-profit and non-profit,” Mr. Altmire said. “You’re going to see a lot more of this across higher education.” One of his group’s main concerns, Mr. Altmire said, was that the Education Department lacks the money to make proper assessments of applications for non-profit conversions.
Career Education Colleges and Universities does have some members that now hold non-profit status, said the group’s president, Jason Altmire. “I would say the lines are being blurred every day between for-profit and non-profit,” Mr. Altmire said. “You’re going to see a lot more of this across higher education.” One of his group’s main concerns, Mr. Altmire said, was that the Education Department lacks the money to make proper assessments of applications for non-profit conversions.
Biden crackdown targets for-profit colleges – January 26, 2022
“We do not oppose accountability measures,” said Jason Altmire, CECU's president. “We believe any accountability measure that you want to impose, any metric that you want to use to measure accountability, should simply be applied to all schools without loophole and without gimmick."
“We do not oppose accountability measures,” said Jason Altmire, CECU's president. “We believe any accountability measure that you want to impose, any metric that you want to use to measure accountability, should simply be applied to all schools without loophole and without gimmick."
4 questions for-profit colleges face in 2022 - January 21, 2022
For-profit colleges have vociferously opposed their students being ineligible for the increase. "We feel that it is an injustice," said CECU President Jason Altmire. "It's just a matter of equity — that the Pell Grant program is designed to be portable."
For-profit colleges have vociferously opposed their students being ineligible for the increase. "We feel that it is an injustice," said CECU President Jason Altmire. "It's just a matter of equity — that the Pell Grant program is designed to be portable."
For-Profit Colleges That Lend to Their Own Students Face Scrutiny – January 20, 2022
“We look forward to working with the bureau and the higher education community to ensure any institutional loan programs meet students’ needs and provide appropriate safeguards,” said Jason Altmire, president of Career Education Colleges and Universities, an industry group representing for-profit schools.
“We look forward to working with the bureau and the higher education community to ensure any institutional loan programs meet students’ needs and provide appropriate safeguards,” said Jason Altmire, president of Career Education Colleges and Universities, an industry group representing for-profit schools.
Consumer Financial Protection Bureau will examine private student lending - January 20, 2022
"We look forward to working with the Bureau and the higher education community to ensure any institutional loan programs meets students' needs and provides appropriate safeguards," said Jason Altmire, president and CEO of CECU.
"We look forward to working with the Bureau and the higher education community to ensure any institutional loan programs meets students' needs and provides appropriate safeguards," said Jason Altmire, president and CEO of CECU.
Biden Administration Moves to Undo DeVos Education Agenda - January 18, 2022
“This negotiated rulemaking is a watershed opportunity for the Biden administration to develop sensible regulations that protect all students and safeguard taxpayer funds,” says Jason Altmire, president and CEO of the Career Education Colleges and Universities, which represents the industry. “With the availability of more data than we’ve ever had in higher education, the negotiating committee – which includes the Department of Education – has a moral obligation to develop policies that hold public, private nonprofit, and for-profit institutions equally accountable for their outcomes.”
“This negotiated rulemaking is a watershed opportunity for the Biden administration to develop sensible regulations that protect all students and safeguard taxpayer funds,” says Jason Altmire, president and CEO of the Career Education Colleges and Universities, which represents the industry. “With the availability of more data than we’ve ever had in higher education, the negotiating committee – which includes the Department of Education – has a moral obligation to develop policies that hold public, private nonprofit, and for-profit institutions equally accountable for their outcomes.”
The (Renewed) Fight Over Gainful Employment – January 18, 2022
Nicholas Kent, senior vice president of policy and regulatory affairs at Career Education Colleges and Universities (the advocate for the for-profit sector), said in an interview that “many people feel that the current administration” has a “foregone conclusion” in favor of gainful employment. “We represent only 8 percent of students but are a disproportionate amount of the conversation,” he said.
Nicholas Kent, senior vice president of policy and regulatory affairs at Career Education Colleges and Universities (the advocate for the for-profit sector), said in an interview that “many people feel that the current administration” has a “foregone conclusion” in favor of gainful employment. “We represent only 8 percent of students but are a disproportionate amount of the conversation,” he said.
For-profit colleges fight exclusion from Pell Grant increase in Biden’s spending bill - November 23, 2021
“It’s a clear attempt to dissuade people from going to for-profit schools,” said Jason Altmire, president and CEO of Career Education Colleges and Universities, which represents for-profit colleges. “We’re talking about disadvantaging students [at for-profit schools] in a way that doesn’t address accountability.”
“It’s a clear attempt to dissuade people from going to for-profit schools,” said Jason Altmire, president and CEO of Career Education Colleges and Universities, which represents for-profit colleges. “We’re talking about disadvantaging students [at for-profit schools] in a way that doesn’t address accountability.”
Using Pell to Police For-Profits? - November 22, 2021
“In a House of Representatives with a five-vote Democratic margin, we were able to get 17 Democrats to support our position,” said Jason Altmire, president and CEO of Career Education Colleges and Universities, which represents for-profit institutions. “We’re very confident moving into the Senate in a 50-50 dynamic that when an amendment is offered, we’ll be able to make the case that our students should be included.”
“In a House of Representatives with a five-vote Democratic margin, we were able to get 17 Democrats to support our position,” said Jason Altmire, president and CEO of Career Education Colleges and Universities, which represents for-profit institutions. “We’re very confident moving into the Senate in a 50-50 dynamic that when an amendment is offered, we’ll be able to make the case that our students should be included.”
Build Back Better's Pell Grant provision prompts debate in higher-ed circles - November 19, 2021
“What this legislation does is discriminate against students who have attended a proprietary school because they've made the determination that their school is the best setting for them to pursue their higher education,” Altmire said. “And there's a lot of reasons why that could be — more flexibility, time to completion, a comfort level with having visited the school and talked to the administrators or whatever the decision is — why should a politician in Washington tell a student where they can and can't use their Pell Grant money?”
“What this legislation does is discriminate against students who have attended a proprietary school because they've made the determination that their school is the best setting for them to pursue their higher education,” Altmire said. “And there's a lot of reasons why that could be — more flexibility, time to completion, a comfort level with having visited the school and talked to the administrators or whatever the decision is — why should a politician in Washington tell a student where they can and can't use their Pell Grant money?”
For-profit colleges fight exclusion from Biden’s Pell boost - November 15, 2021
Democrats “clearly hoped they would be able to slip this in and nobody would notice, and the process would move so quickly that nothing could be done about it. Of course that hasn't been the case,” said Jason Altmire. “It is clearly an attempt to dissuade students from going to a for-profit school,” he added.
Democrats “clearly hoped they would be able to slip this in and nobody would notice, and the process would move so quickly that nothing could be done about it. Of course that hasn't been the case,” said Jason Altmire. “It is clearly an attempt to dissuade students from going to a for-profit school,” he added.
Democrats’ Bill Would Deny For-Profit College Students Extra Aid - November 12, 2021
“If you want to do a $1 trillion effort to rebuild America, those are our graduates,” Mr. Altmire said. “You’re going to disadvantage the very students you’re going to need to carry out this work.”
“If you want to do a $1 trillion effort to rebuild America, those are our graduates,” Mr. Altmire said. “You’re going to disadvantage the very students you’re going to need to carry out this work.”
Biden plan draws wide ire for excluding for-profit colleges from Pell increase - November 10, 2021
"This is a blunt instrument with a lot of unintended consequences," John Huston said. "We'd rather there be more of a focus on institutional accountability rules and that this provision be taken out."
"This is a blunt instrument with a lot of unintended consequences," John Huston said. "We'd rather there be more of a focus on institutional accountability rules and that this provision be taken out."
House Members Urge Inclusion of For-Profits in Pell Increase - November 9, 2021
"Congress has never passed legislation creating this type of distinction in the Pell Grant program," the lawmakers wrote. "We urge you not to break from that bipartisan tradition and hope you will ensure that all low-income students are eligible for the expanded Pell Grant."
"Congress has never passed legislation creating this type of distinction in the Pell Grant program," the lawmakers wrote. "We urge you not to break from that bipartisan tradition and hope you will ensure that all low-income students are eligible for the expanded Pell Grant."
Nationwide college enrollment continues to slide – October 26, 2021
Nicholas Kent at Career Education Colleges and Universities said the data is not a comprehensive look at the for-profit industry because it excludes two-year institutions. He says there is a bifurcation in the sector, with some schools suffering and others weathering tepid enrollment. All the same, the overall two-year decline among four-year for-profits and the community colleges are now very similar, Shapiro said. The sectors serve similar populations of students who are often older.
Nicholas Kent at Career Education Colleges and Universities said the data is not a comprehensive look at the for-profit industry because it excludes two-year institutions. He says there is a bifurcation in the sector, with some schools suffering and others weathering tepid enrollment. All the same, the overall two-year decline among four-year for-profits and the community colleges are now very similar, Shapiro said. The sectors serve similar populations of students who are often older.
The Ed Dept revived a financial aid investigative unit. Is it open season on for-profit colleges? - October 21, 2021
"Our fear is that this is just one more effort to target our sector and weaponize this new enforcement unit in a way that is going to only make it more difficult for proprietary schools to operate," said Jason Altmire, president and CEO of Career Education Colleges and Universities, a group representing for-profit colleges.
"Our fear is that this is just one more effort to target our sector and weaponize this new enforcement unit in a way that is going to only make it more difficult for proprietary schools to operate," said Jason Altmire, president and CEO of Career Education Colleges and Universities, a group representing for-profit colleges.
Cardona resurrects student-aid enforcement unit disbanded by DeVos - October 8, 2021
“We have a concern that, like happened under Obama, this effort at enforcement may only look at for-profit schools,” said Jason Altmire, CEO of Career Education Colleges and Universities, which represents for-profit colleges. “Any effort to scrutinize financial aid should include all schools in all sectors because all students deserve protection and all schools should be held accountable.”
“We have a concern that, like happened under Obama, this effort at enforcement may only look at for-profit schools,” said Jason Altmire, CEO of Career Education Colleges and Universities, which represents for-profit colleges. “Any effort to scrutinize financial aid should include all schools in all sectors because all students deserve protection and all schools should be held accountable.”
Advocates are pushing to hold college executives liable when their schools collapse or mislead students - August 19, 2021
(Tiered paywall; subscription might be needed) Though the Department of Education could arguably pursue personal liability for owners and executives based on provisions Congress added to the Higher Education Act in 1992, Altmire said his concern is that, “this is an extreme measure that they appear to be trying to make more commonplace than it was designed to be” under that law. “And certainly than it’s designed in corporate law. That is somewhat of an aberration from the traditional rules governing personal responsibility in corporate law in America,” Altmire said of the proposal.
(Tiered paywall; subscription might be needed) Though the Department of Education could arguably pursue personal liability for owners and executives based on provisions Congress added to the Higher Education Act in 1992, Altmire said his concern is that, “this is an extreme measure that they appear to be trying to make more commonplace than it was designed to be” under that law. “And certainly than it’s designed in corporate law. That is somewhat of an aberration from the traditional rules governing personal responsibility in corporate law in America,” Altmire said of the proposal.