U.S. Secretary of Education Betsy DeVos speaking at the 2017 Conservative Political Action Conference (CPAC) in National Harbor, Maryland. (Photo: Gage Skidmore/flickr/cc)
DeVos Hires Top Official at For-Profit University to Help "Right-Size" Department of Education
Jennifer Berkshire reports that Secretary Betsy DeVos has turned to a top official from the scandal-plagued for-profit higher education industry to "right-size" the Department of Education.
As the New York Times said when his appointment was announced:
Jennifer Berkshire reports that Secretary Betsy DeVos has turned to a top official from the scandal-plagued for-profit higher education industry to "right-size" the Department of Education.
As the New York Times said when his appointment was announced:
"As chief compliance officer for a corporate owner of for-profit colleges, Robert S. Eitel spent the past 18 months as a top lawyer for a company facing multiple government investigations, including one that ended with a settlement of more than $30 million over deceptive student lending."
Eitel worked for Bridgepoint Education Inc., which took over a small private college in 2005, called Ashford College. Bridgepoint turned it into a colossus of online higher education. In 2005, Ashford had 300 students. By 2010, it had more than 80,000.
Berkshire interviewed Christopher Crowley of Wayne State, who explained how the business leaders of the new enterprises turned a struggling small college into a profitable success.
Crowley:
When Bridgepoint bought Franciscan in 2005, the college was going bankrupt. The total result amount of student loan money that Franciscan was taking in at that point was $3 million. But less than two years later, the school, which was now called Ashford University, was getting $81 million in federal student aid and reporting profits of $3.1 million. By 2010, Ashford University reported $216 million in profit and was receiving $613 million in federal student aid funds. Part of the reason for this was a huge drop in how much less they were spending per student. Franciscan spent about $5,000 per year, per student on instructional costs. Ashford spent just $700. That's an 86% reduction in spending over five years. That money went to pay for lavish executive compensation as well for marketing and recruitment. By 2010, Bridgepoint was spending $211.6 million on advertising, more than any other publicly traded education company in the United States at the time.
Ashford's transformation into a piggy bank for investors is a story of the triumph of opportunistic capitalism fueled by greed. But it is also a story that recounts the collapse of the higher learning. And one of the architects of that transformation will guide Betsy DeVos, who has no managerial experience, as she reorganizes the U.S. Department of Education.
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, The U.S. is on a fast track to authoritarianism like nothing I've ever seen. Meanwhile, corporate news outlets are utterly capitulating to Trump, twisting their coverage to avoid drawing his ire while lining up to stuff cash in his pockets. That's why I believe that Common Dreams is doing the best and most consequential reporting that we've ever done. Our small but mighty team is a progressive reporting powerhouse, covering the news every day that the corporate media never will. Our mission has always been simple: To inform. To inspire. And to ignite change for the common good. Now here's the key piece that I want all our readers to understand: None of this would be possible without your financial support. That's not just some fundraising cliche. It's the absolute and literal truth. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. The final deadline for our crucial Summer Campaign fundraising drive is just days away, and we’re falling short of our must-hit goal. Will you donate now to help power the nonprofit, independent reporting of Common Dreams? Thank you for being a vital member of our community. Together, we can keep independent journalism alive when it’s needed most. - Craig Brown, Co-founder |
Jennifer Berkshire reports that Secretary Betsy DeVos has turned to a top official from the scandal-plagued for-profit higher education industry to "right-size" the Department of Education.
As the New York Times said when his appointment was announced:
"As chief compliance officer for a corporate owner of for-profit colleges, Robert S. Eitel spent the past 18 months as a top lawyer for a company facing multiple government investigations, including one that ended with a settlement of more than $30 million over deceptive student lending."
Eitel worked for Bridgepoint Education Inc., which took over a small private college in 2005, called Ashford College. Bridgepoint turned it into a colossus of online higher education. In 2005, Ashford had 300 students. By 2010, it had more than 80,000.
Berkshire interviewed Christopher Crowley of Wayne State, who explained how the business leaders of the new enterprises turned a struggling small college into a profitable success.
Crowley:
When Bridgepoint bought Franciscan in 2005, the college was going bankrupt. The total result amount of student loan money that Franciscan was taking in at that point was $3 million. But less than two years later, the school, which was now called Ashford University, was getting $81 million in federal student aid and reporting profits of $3.1 million. By 2010, Ashford University reported $216 million in profit and was receiving $613 million in federal student aid funds. Part of the reason for this was a huge drop in how much less they were spending per student. Franciscan spent about $5,000 per year, per student on instructional costs. Ashford spent just $700. That's an 86% reduction in spending over five years. That money went to pay for lavish executive compensation as well for marketing and recruitment. By 2010, Bridgepoint was spending $211.6 million on advertising, more than any other publicly traded education company in the United States at the time.
Ashford's transformation into a piggy bank for investors is a story of the triumph of opportunistic capitalism fueled by greed. But it is also a story that recounts the collapse of the higher learning. And one of the architects of that transformation will guide Betsy DeVos, who has no managerial experience, as she reorganizes the U.S. Department of Education.
Jennifer Berkshire reports that Secretary Betsy DeVos has turned to a top official from the scandal-plagued for-profit higher education industry to "right-size" the Department of Education.
As the New York Times said when his appointment was announced:
"As chief compliance officer for a corporate owner of for-profit colleges, Robert S. Eitel spent the past 18 months as a top lawyer for a company facing multiple government investigations, including one that ended with a settlement of more than $30 million over deceptive student lending."
Eitel worked for Bridgepoint Education Inc., which took over a small private college in 2005, called Ashford College. Bridgepoint turned it into a colossus of online higher education. In 2005, Ashford had 300 students. By 2010, it had more than 80,000.
Berkshire interviewed Christopher Crowley of Wayne State, who explained how the business leaders of the new enterprises turned a struggling small college into a profitable success.
Crowley:
When Bridgepoint bought Franciscan in 2005, the college was going bankrupt. The total result amount of student loan money that Franciscan was taking in at that point was $3 million. But less than two years later, the school, which was now called Ashford University, was getting $81 million in federal student aid and reporting profits of $3.1 million. By 2010, Ashford University reported $216 million in profit and was receiving $613 million in federal student aid funds. Part of the reason for this was a huge drop in how much less they were spending per student. Franciscan spent about $5,000 per year, per student on instructional costs. Ashford spent just $700. That's an 86% reduction in spending over five years. That money went to pay for lavish executive compensation as well for marketing and recruitment. By 2010, Bridgepoint was spending $211.6 million on advertising, more than any other publicly traded education company in the United States at the time.
Ashford's transformation into a piggy bank for investors is a story of the triumph of opportunistic capitalism fueled by greed. But it is also a story that recounts the collapse of the higher learning. And one of the architects of that transformation will guide Betsy DeVos, who has no managerial experience, as she reorganizes the U.S. Department of Education.