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"Beware: Alternative Certification Is Coming January 23, 2012, 4:42 pm By Richard Vedder The announcement of agreements between Burck Smith's StraighterLine and the Education Testing Service (ETS) and the Council on Aid to Education (CAE) to provide competency test materials to students online is potentially very important, along with several other recent developments. A little economics explains why this is so. In the first week of beginning economics courses, professors usually make this fundamental point: If the price of something rises a lot, people look for substitutes. Resources (dollars) are scarce, and individuals want to make the best use of them. They "maximize their utility" by shifting away from high-priced good or service A to lower-priced good B. With regards to colleges, consumers typically have believed that there are no good substitutes-the only way a person can certify to potential employers that she/he is pretty bright, well educated, good at communicating, disciplined, etc., is by presenting a bachelor's degree diploma. College graduates typically have these positive attributes more than others, so degrees serve as an important signaling device to employers, lowering the costs of learning about the traits of the applicant. Because of the lack of good substitutes, colleges face little outside competition and can raise prices more, given their quasi-monopoly status. As college costs rise, however, people are asking: Aren't there cheaper ways of certifying competence and skills to employers? Employers like the current system, because the huge (often over $100,000) cost of demonstrating competency is borne by the student, not by them. Employers seemingly have little incentive to look for alternative certification. That is why reformers like me cannot get employer organizations like the U.S. Chamber of Commerce to take alternative certification seriously. But if companies can find good employees with high-school diplomas who have dem

"Gates Wikipedia University? June 10, 2011, 12:42 pm By Richard Vedder I received an e-mail from James Loynd recently, commenting favorably on an appearance I made on PBS's News Hour. Mr. Loynd asked, "What if the best professors in every department were to video tape their lectures? A student could them work his/her way towards a degree off campus. Even chat-room discussions with grad students could assist the students. Testing could be…not necessarily on campus, maybe even at your local YMCA." Of course, this is not the first time the idea has been suggested, but the question arises: Why are we not moving aggressively to do something like this? More specifically, why doesn't someone-say, the Gates Foundation-hire 100 or so stellar professors in 20 disciplines to offer perhaps 150 to 200 absolutely superb courses online, with testing administered by an outside agency (say, the ACT, SAT, or Underwriter's Laboratories)? Even paying each professor $100,000 per course and allowing for 100 percent overhead, this would cost $30- to $40-million. There would be some expenses for administration and a need to redo lectures every few years, but the whole thing is within the financial capacity of several foundations in the private sector. The upshot would be that a student taking about 32 of the courses would have the equivalent of a B.A. degree, and it could be offered to the student free (with modest per-student private or government subsidies) or at very modest cost. If someone proposed to do this, of course, there would be all sorts of objections. Some would argue you need more disciplines included, more courses, etc. And who would accredit the institution issuing the degree? Most such objections are trivial or bogus-for example, a college student does not have to be offered detailed study in every discipline in order to acquire a body of knowledge over roughly a four-year period that is the equivalent of a decent-quality bachelor's degree. Some fu

"Another College Is Sold to a For-Profit May 24, 2010 Lambuth University, a Methodist institution in Tennessee, announced Friday that it has agreed to be sold to private investors, but declined to name the group that is taking over the institution. A week ago, the university said that if it failed to reach a deal by Friday, there was a danger of closure and of failing to meet payroll. Assuming the deal goes through, Lambuth will be the latest example of a financially struggling private college agreeing to be bought out by a for-profit group. Just two months ago, a new for-profit company bought Dana College, a Lutheran liberal arts institution in Nebraska. Share This Story * Bookmark and Share * E-mail * Print Related Stories * Union Push in For-Profit Higher Ed May 24, 2010 * Comparing Higher Ed to Wall Street April 29, 2010 * Pushback on Gainful Employment April 22, 2010 * Going Ahead With Gainful Employment April 21, 2010 * Unnatural Acts April 8, 2010 FREE Daily News Alerts Advertisement The statement announcing the sale said that "President Bill Seymour told the board that this was the best proposal Lambuth has received throughout its year-long process of searching for a suitable partner." The statement also said that the university should be able to submit documents about the shift to its accreditor, the Southern Association of Schools and Colleges, in time for a June review of the change in ownership. Transfer of accreditation from a regional accreditor such as SACS is typically a key enticement for for-profit entities considering the purchase of a private nonprofit college. While changes in ownership subject colleges to an additional accreditation review, such a shift is generally considered far easier than starting from scratch to earn initial accreditation. Some critics charge that these accreditation shifts are a serious loophole in oversight of higher education and that a purchase of a

"More Than Bridgepoint on Trial March 11, 2011 WASHINGTON -- Given how the latest in U.S. Senator Tom Harkin's series of hearings on for-profit higher education unfolded on Thursday, Andrew S. Clark, CEO of Bridgepoint Education, Inc., had to be glad that he and his lawyers decided he shouldn't appear at the session, which focused on the exploits of his publicly traded company. Sylvia Manning, president of the regional agency that accredited Bridgepoint's Ashford University, probably wishes she too had found an excuse not to attend. The hearing before the Senate Committee on Health, Education, Labor and Pensions was framed as a "case study" of how for-profit colleges have embraced online education to fuel explosive growth and drive large profits, and Bridgepoint (the case study, in absentia) and for-profit colleges in general took a lot of hits from Harkin. He at one point called Bridgepoint "a scam, an absolute scam." But while the career colleges were Harkin's primary targets, as they have been throughout his yearlong examination, accrediting agencies and, to a lesser degree, state and federal governments, absorbed plenty of collateral damage. Harkin, for one, made it clear that he believes many accreditors lack the expertise to keep tabs on the increasingly complex operations of the biggest for-profit colleges, and warned that "something has got to change" if the agencies -- as the federal government's subcontractor on assessing institutional quality -- are to continue to grant colleges access to federal financial aid. "Many of these for-profit education companies are becoming multi-state corporations, and their main focus is becoming their bottom line rather than their students," the Iowa senator said during an exchange with Manning. "The question I would ask is, in their current state, are our accreditation agencies equipped to oversee billion-dollar, multi-state corporations?" As is common on Capitol Hill, he didn't wait for her answer, providing

"Asking Too Much (and Too Little) of Accreditors November 12, 2010 By Anne D. Neal When it comes to accreditation, what hath Congress wrought? Does even Congress know? These questions come to mind as Senators prepare for more hearings on the for-profit higher education sector. According to news reports, they are enraged by for-profit colleges' abusive business practices. They blame accreditors for allowing fraud to flourish and for permitting institutions to persuade unprepared students to take out federally financed student loans. These students then predictably drop out, burdened by debt. Share This Story * Bookmark and Share * E-mail * Print Related Stories * Misrepresenting the GAO December 20, 2010 * Sweating Bullets at the GAO December 17, 2010 * Gunfight at the For-Profit Corral December 10, 2010 * Accreditation Revoked December 8, 2010 * Looking Ahead to 2013 December 3, 2010 FREE Daily News Alerts Advertisement Senators want to know why accreditors haven't protected the public interest. And their frustration is hardly surprising, given some of what we've seen. But are the accreditors to blame? Hardly. Congress shouldn't blame accreditors: it should blame itself. The existing accreditation system has neither ensured quality nor ferreted out fraud. Why? Because Congress didn't want it to. If Congress truly wants to protect the public interest, it needs to create a system that ensures real accountability."

" MIT Expands 'Open' Courses, Adds Completion Certificates December 19, 2011 - 4:28am The Massachusetts Institute of Technology -- which pioneered the idea of making course materials free online -- today announced a major expansion of the idea, with the creation of MITx, which will provide for interaction among students, assessment and the awarding of certificates of completion to students who have no connection to MIT. MIT is also starting a major initiative -- led by Provost L. Rafael Reif -- to study online teaching and learning. The first course through MITx is expected this spring. While the institute will not charge for the courses, it will charge what it calls "a modest fee" for the assessment that would lead to a credential. The credential will be awarded by MITx and will not constitute MIT credit. The university also plans to continue MIT OpenCourseWare, the program through which it makes course materials available online. An FAQ from MIT offers more details on the new program. While MIT has been widely praised for OpenCourseWare, much of the attention in the last year from the "open" educational movement has shifted to programs like the Khan Academy (through which there is direct instruction provided, if not yet assessment) and an initiative at Stanford University that makes courses available -- courses for which some German universities are providing academic credit. The new initiative would appear to provide some of the features (instruction such as offered by Khan, and certification that some are creating for the Stanford courses) that have been lacking in OpenCourseWare. 35 Disqus Like Dislike Login Add New Comment Image Real-time updating is enabled. (Pause) Showing 1 comment william czander In 1997, Peter Drucker made a profound prediction he predicted that in 30 years the mortar and brick university campuses would be driven out of existence by their inexorable tuition, He did not predict the financi

"Online Course Provider, StraighterLine, to Offer Critical-Thinking Tests to Students January 19, 2012, 12:29 pm By Jeff Selingo As alternatives to the college diploma have been bandied about recently, one question always seems to emerge: How do you validate badges or individual classes as a credential in the absence of a degree? One company that has been hailed by some as revolutionizing introductory courses might have an answer. The company, StraighterLine, announced on Thursday that beginning this fall it will offer students access to three leading critical-thinking tests, allowing them to take their results to employers or colleges to demonstrate their proficiency in certain academic areas. The tests-the Collegiate Learning Assessment, sponsored by the Council for Aid to Education, and the Proficiency Profile, from the Educational Testing Service-each measure critical thinking and writing, among other academic areas. The iSkills test, also from ETS, measures the ability of a student to navigate and critically evaluate information from digital technology. Until now, the tests were largely used by colleges to measure student learning, but students did not receive their scores. That's one reason that critics of the tests have questioned their effectiveness since students have little incentive to do well. Burck Smith, the founder and chief executive of StraighterLine, which offers online, self-paced introductory courses, said on Thursday that students would not need to take classes with StraighterLine in order to sit for the tests. But he hopes that, for students who do take both classes and tests, the scores on the test will help validate StraighterLine courses. StraighterLine doesn't grant degrees and so can't be accredited. It depends on accredited institutions to accept its credits, which has not always been an easy task for the company. "For students looking to get a leg up in the job market or getting into college," Mr. Smith said, "t

"A Curricular Innovation, Examined (Part 3) December 16, 2010 'It Should Be Fine' Perhaps all of the back-and-forth about StraighterLine - the news stories, the blog posts, the assorted incidents of backlash, the endless tug-of-war over who awards credit for what - might be boiled down to two essential questions: Are StraighterLine's courses truly more or less equivalent to the courses that many college students are already taking? And, more broadly, at what point does any educational experience - specifically, in StraighterLine's case, an introductory-level general education class - become worthy of college credit? The former question addresses the level on which Burck Smith would like for his brainchild to be evaluated; the latter is an issue that he actively seeks to avoid. In a long series of emails over the course of several weeks, as well as one 90-minute telephone interview, Smith repeatedly and expressly urged me to "make sure to compare our courses to other colleges' general education courses with whatever evaluation standards they use rather than what they say they do or wish they did." "…[E]veryone else is doing the same thing," Smith said, "but they're allowed to be accredited and approved and sort of part of the club." If one accepts Smith's terms of debate, it is difficult to argue with him. Surely accredited institutions offer plenty of courses that are not of the utmost quality. And colleges and universities do turn a profit on many large, introductory-level courses - particularly courses that are taught by low-paid temporary instructors, or broadcast online to vast numbers of students - and that profit is used, as Carey's Washington Monthly article puts it, "to pay for libraries, basketball teams, classical Chinese poetry experts, and everything else." How colleges pay their classical Chinese poetry experts is not Smith's concern; on the contrary, he views himself as something of a consumers' adv

"July 1, 2011 As Costs of New Rule Are Felt, Colleges Rethink Online Course Offerings in Other States By Kelly Field Bismarck State College, a two-year institution located in the capital of North Dakota, offers something few colleges do: online degrees in power-plant technology. Utilities across the country send workers to the community college for specialized training in electric power, nuclear power, and other fields. "We're pretty darn unique," said Larry C. Skogen, the college's president. "I don't think we have any competition out there." Though other colleges offer similar programs on campus, "we deliver nationwide online," he said, with students in all 50 states. That could change soon. Under federal rules that take effect on July 1, Bismarck State will have to seek approval to operate in every state where it enrolls students, or forgo those students' federal aid. With some states charging thousands of dollars per application, the college is weighing whether it can afford to remain in states where the cost of doing business outweighs the benefits, in tuition terms. Though the college hasn't made any decisions yet, "the reality is that if we run into a state where we have few students and it's expensive [to get approval], it's probably not going to be cost-effective to continue," Mr. Skogen said. Such cost-benefit calculations are being conducted on campuses across the country, as college leaders struggle to make sense of a patchwork of state rules that were written in an era when "college" was synonymous with "campus" and online learning was in its infancy. Gregory Ferenbach, a lawyer who advises colleges on regulatory compliance, said he has heard from a "couple dozen" colleges, most of them nonprofits, that are considering withdrawing from some states because of the cost or burden of obtaining approval. Their decisions could have a significant effect on college access. If enough colleges steer clear of states with expensive approval processes, or s

Kids don't put Harvard stickers on their rear windshields, parents do. But for how long? These schools have much to recommend them: impressive students, organic dining halls, presidential alumni. To maintain their reputations, however, elite colleges have long relied on limiting access-Harvard's class of 2015 is about 1,700 students, Yale's is 1,300-and that may be coming to an end. Revolutionaries outside the ivy walls are hammering their way not onto campus but straight into class. Enlarge Image CloseAlamy Elite schools have long relied on limiting access-but for how long? .It's a thrilling collegiate coup. Last fall, a couple of hundred Stanford students registered for Sebastian Thrun's class on artificial intelligence. He offered the course free online, too, through his new company Udacity, and 160,000 students signed up. For the written assignments and exams, both groups got identical questions-and 210 students got a perfect overall score. They all came from the online group. So if you bluffed your way into the Ivy League with plumped-up credentials or an essay edited by somebody else, it's time to start breaking a sweat. "I like to compare it to film," Mr. Thrun told me at a coffee shop between Stanford and Mountain View, Calif., where his day job is running Google X, the company's experimental lab. "Before film there was theater-small casting companies reaching 300 people at a time. Then celluloid was invented, and you could record something and replicate it. A good movie wouldn't reach 300 but 3,000, and soon 300,000 and soon three million. That changed the economics." It is education's time to change now. At the high-school level, interactive study sites are increasingly ingenious: Look at Piazza, Blackboard and Quizlet, founded by a 17-year-old. TED-Ed just launched a channel on You Tube, with three- to 10-minute lessons for kids. YouTube's EDU Portal has been viewed 22 billion times. Khan Academy, a favorite of Bill Gates

"The Year Ahead in IT, 2012 January 6, 2012 - 3:00am By Lev Gonick This series of annual Year Ahead articles on technology and education began on the eve of what we now know is one of the profound downturns in modern capitalism. When history is written, the impact of the deep economic recession of 2008-2012 will have been pivotal in the shifting balance of economic and political power around the world. Clear, too, is the reality that innovation and technology as it is applied to education is moving rapidly from its Anglo-American-centered roots to a now globally distributed dynamic generating disruptive activities that affect learners and institutions the world over. Seventy years ago, the Austrian-born Harvard lecturer and conservative political economist Joseph Schumpeter popularized the now famous description of the logic of capitalism, Capitalism, Socialism, and Democracy. The opening of new markets, foreign or domestic … illustrate(s) the same process of industrial mutation - if I may use that biological term - that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. This process of Creative Destruction is the essential fact about capitalism. Our colleges and universities, especially those in the United States, are among the most conservative institutions in the world. The rollback of public investment in, pressure for access to, and indeterminate impact of globalization on postsecondary education all contribute to significant disorientation in our thinking about the future of the university. And then there are the disruptive impacts of information technology that only exacerbate the general set of contradictions that we associate with higher education. The faculty are autonomous and constrained, powerful and vulnerable, innovative at the margins yet conservative at the core, dedicated to education while demeaning teaching devoted to liberal arts and yet powerfully vocatio

"January 17, 2012 Investors Backed by Publishing Giant Team Up With Calif. University to Start a Bilingual College By Goldie Blumenstyk A $100-million investment fund backed by the German publishing and media giant Bertelsmann and the endowment for two Texas public university systems is jumping into higher education with two ventures aimed key markets. One is a new bilingual college aimed at Hispanic students, in partnership with an affiliate of Chapman University. The other is a new London-based distance-education company that will assist European universities in creating, marketing, and managing online courses and degree programs. For the yet-to-be-named Hispanic-serving college, the new fund, called University Ventures, will form a partnership with Brandman University, an 11,000-student nonprofit institution now known for serving working adult students at its 25 campuses in California (plus one in Washington State) through online and face-to-face courses. Once known as Chapman University College, it was separately accredited from Chapman three years ago and renamed for a benefactor, the Brandman Foundation, in April. Gary Brahm, Brandman's chancellor, said his institution has a good record in serving and graduating Hispanic students, who make up more than a quarter of Brandman's enrollment. (It claims a six-year graduation rate for students, all of whom now enter with at least 12 credits, of 68 percent.) The new partnership with University Ventures presents a chance "to do something very significant in higher education and to do something very significant in California," he said in an interview on Monday. The program will be aimed at the many students from Spanish-speaking homes who have learned enough English to graduate from high school but either are too intimidated or too inadequately prepared to get through traditional college programs taught fully in English. "This has the opportunity to significantly improve their success," he said. Together, Unive

"January 24, 2012 Colleges Can Take 4 Steps to Assure Quality, Group Says By Dan Berrett Increasing the percentage of college graduates in the United States has become a collective aspiration of policy makers, advocates for higher education, and President Obama. But this push for quantity will mean little if colleges cannot demonstrate the quality of the degrees they confer, says an advocacy group. The group, the New Leadership Alliance for Student Learning and Accountability, released today a set of guidelines it says will help colleges assess and improve student achievement and, in the process, better demonstrate the quality of their offerings. The guidelines are being presented at the Council for Higher Education Accreditation's annual meeting in Washington, with endorsements from 27 organizations, chiefly accreditors and associations. The guidelines stake out four broad principles of assessment and accountability for a college to follow: setting ambitious goals for the outcomes of undergraduate education; gathering evidence about how the institution is faring in pursuit of those outcomes; using that evidence to improve learning; and sharing the results. The essential idea is to clearly articulate and make intentional the objectives that guide student learning, said David C. Paris, executive director of the alliance. "That's our goal," he said, "an evidence-based profession." The alliance was started in 2009 by several higher-education leaders and foundations to respond to growing calls for accountability in the sector. The assumption was that colleges needed to define how they would substantiate student learning-or lawmakers would do it for them. The new guidelines expand on the alliance's previous efforts, including a statement of principles to guide student learning, which were released in 2008, and a pledge by more than 100 college presidents to take steps at their institutions that are largely identical to the ones set out in the new guidelines. O

"A Disrupted Higher-Ed System January 26, 2012, 2:40 pm By Jeff Selingo The "disruption" of the higher-ed market is a popular refrain these days. Rising tuition prices and student debt have left many wondering if the current model is indeed broken and whether those like Harvard's Clay Christensen are right when they say that innovations in course delivery will eventually displace established players. What exactly those innovations will look like remains a matter of debate. One view from Sheryl Sandberg, chief operating officer of Facebook, envisions a future in which every industry will be disrupted and "rebuilt with people at the center." In this recent interview with The Wall Street Journal, Sandberg talked specifically about the gaming industry, which has been upended by the popularity of social-gaming venues, such as Words With Friends and Farmville. But what if we applied her people-centered vision to higher ed? While amenities and services on campuses have been redesigned in the last decade with students clearly at the center, the core of the academic experience for students today is almost exactly the same as it was for their parents decades ago. While other industries have been able to find productivity gains without sacrificing quality, on most college campuses we still have professors at the front of a room or at a table with an average of 16 students in front of them. We all know that's one of the key drivers of rising college costs. Higher ed is people intensive, and for many prospective students and their parents, the professor-centered academic experience is well worth the high price and will be for a long time. It's one reason why high-quality institutions really have little to worry about. But we also know that the traditional academic experience isn't for everyone these days. The students we used to call "nontraditional" are now a majority, yet we have way too many colleges chasing after high-achieving 18-to-24-year-olds

"The Coming Meltdown in Higher Education By Seth Godin For 400 years, higher education in the United States has been on a roll. From Harvard asking Galileo to be a guest professor in the 1600s to millions tuning in to watch a team of unpaid athletes play another team of unpaid athletes in some college sporting event, the amounts of time and money and prestige in the college world have been climbing. I'm afraid that's about to crash and burn. Here's how I'm looking at it. Most undergraduate college and university programs are organized to give an average education to average students. College has gotten expensive far faster than wages have gone up. The definition of "best" is under siege. The correlation between a typical college degree and success is suspect. Accreditation isn't the solution, it's the problem."

"Accreditor Takes a Tougher Look at Sales of Colleges By Eric Kelderman Before 2008, the Higher Learning Commission of the North Central Association of Colleges and Schools had a reputation as an accreditor that allowed flexible standards for the burgeoning for-profit education industry, which has rapidly attracted both students and the federal grants and loan dollars they use to pay tuition. But this week, the regional accreditor, which counts many of the largest for-profit education companies among its members, showed that it was serious about changing that reputation. On Wednesday, the commission announced that it had denied a request to transfer the accreditation of Dana College, a small, religiously affiliated college in Nebraska, to a group of private investors that had said it would buy the college and save it from financial ruin. At the same time, the commission rejected a similar proposal for Rochester College, in Michigan."

"December 12, 2010 Student Learning: Measure or Perish By Kevin Carey For the past three months, The Chronicle's reporters have been writing a series of articles collectively titled Measuring Stick, describing the consequences of a higher-education system that refuses to consistently measure how much students learn. From maddening credit-transfer policies and barely regulated for-profit colleges to a widespread neglect of teaching, the articles show that without information about learning, many of the most intractable problems facing higher education today will go unsolved. Failing to fill the learning-information deficit will have many consequences: * The currency of exchange in higher education will continue to suffer from abrupt and unpredictable devaluation. Students trying to assemble course credits from multiple institutions into a single degree-that is, most students-frequently have their credits discounted for no good reason. That occurs not only when students transfer between the two- and four-year sectors, or when the institutions involved have divergent educational philosophies. A student trying to transfer credits from an introductory technical-math course at Bronx Community College to other colleges within the City University of New York system, for example, would be flatly denied by five institutions and given only elective credit by three others. John Jay College of Criminal Justice, by contrast, would award the student credit for an introductory modern-math course acceptable for transfer by every CUNY campus, including Bronx Community College-except that BCC would translate that course into trigonometry and college algebra, not technical math. Students who emerge from this bureaucratic labyrinth should be awarded credit in Kafka studies for their trouble. Credit devaluation, which wastes enormous amounts of time, money, and credentialed learning every year, is rooted in mistrust. Because colleges don't know what students in

"CHICAGO -- If you closed your eyes and listened to the various highlighted speakers at the Higher Learning Commission's annual meeting here this week, you might have thought that Margaret Spellings and her outcomes-focused colleagues were still running the U.S. Education Department. Virtually all of the national higher education leaders who spoke to the country's largest accrediting group sent a version of the same message: The federal government is dead serious about holding colleges and universities accountable for their performance, and can be counted on to impose undesirable requirements if higher education officials don't make meaningful changes themselves. "

"High-Profile Trader's Harsh Critique of For-Profit Colleges Steven Eisman, the Wall Street trader who was mythologized in Michael Lewis's The Big Short as that rare person who saw the subprime mortgage crisis coming and made a killing as a result, thinks he has seen the next big explosive and exploitative financial industry -- for-profit higher education -- and he's making sure as many people as possible know it. In a speech Wednesday at the Ira Sohn Investment Research Conference, an exclusive gathering at which financial analysts who rarely share their insights publicly are encouraged to dish their "best investment ideas," Eisman started off with a broadside against Wall Street's college companies. "Until recently, I thought that there would never again be an opportunity to be involved with an industry as socially destructive and morally bankrupt as the subprime mortgage industry," said Eisman, of FrontPoint Financial Services Fund. "I was wrong. The For-Profit Education Industry has proven equal to the task." Eisman's speech lays out his analysis of the sector's enormous profitability and its questionable quality, then argues that the colleges' business model is about to be radically transformed by the Obama administration's plan to hold the institutions accountable for the student-debt-to-income ratio of their graduates. "Under gainful employment, most of the companies still have high operating margins relative to other industries," Eisman said. "They are just less profitable and significantly overvalued. Downside risk could be as high as 50 percent. And let me add that I hope that gainful employment is just the beginning. Hopefully, the DOE will be looking into ways of improving accreditation and of ways to tighten rules on defaults." Stocks of the companies appeared to fall briefly in the last hour of trading Wednesday, after news of Eisman's speech made the rounds."

"For-Profit Colleges on the Brink January 6, 2011, 1:04 pm By Peter Wood The for-profit sector of higher education is in the political spotlight these days. Last year an Obama administration official launched an attack on the legitimacy of for-profit colleges and universities. Although that official subsequently resigned his position in the Department of Education, the measures he promoted took on a life of their own. Now the for-profits are faced with what could be an existential crisis. The legal challenges have driven down the stock prices of the publicly-traded institutions and a daunting new regulation is about to take effect. The story has been well-reported in the Chronicle. The former official who got the anti-for-profit ball rolling is Robert Shireman, who served as deputy undersecretary of education, until his resignation in July. Shireman jawboned the accrediting associations to be tougher on for-profits; called for a new system whereby each individual state in which an online university does business would have the right to regulate the enterprise; and pushed for the now notorious idea that for-profit colleges and universities would have to show high levels of "gainful employment" for their graduates in the fields they studied. His animus against the for-profits didn't seem to sit all that well with the rest of the Obama administration. On May 11, Secretary of Education Arne Duncan went to a policy forum held by the for-profit DeVry University and declared that the for-profits play a "vital role" in educating underserved populations. Shireman had played a key role in the Obama administration's successful effort to abolish the role of commercial lenders in making Title IV federally-guaranteed student loans and replacing that system with direct lending managed by the Department of Education. So his decision to head for the exit had more an air of victory than of forced departure. The Chronicle, however, ran an in-depth analysis pointing to a