Ed Dept brokered 90/10 rule changes

[carrythenothing]

The largest alteration to the 90/10 rule reflects a recent change in federal law. Currently, for-profit colleges are allowed to include military education benefits, such as the GI Bill, in the 10% calculation, which has led some institutions to aggressively recruit veterans. But Congress passed a law last year forcing colleges to include all federal education funds on the 90% side, starting in 2023.

I'm wary of putting some arbitrary limit on financial aid schools can receive. This seems like this would affect colleges that serve low-income and minority students.

The article doesn't make it clear, but the 90/10 rule has always applied only to for-profit schools. It used to be the 85/15 rule (Higher Education Amendments of 1992).

[studyingfortests]

It seems to me, from my limited knowledge, that the GIANT loophole here is that the 90/10 only applies to for-profit schools. This is likely at least part of why we're suddenly seeing all these schools (Arizona State, Purdue, UMass, USC, etc) partnering with for-profit institutions on very long-term (10-30 year) deals. From my uneducated eye, I could easily see this as a scam to end-run around the for-profit rule.

The for-profits, from what I have read and heard, are still almost 100% in the driver's seat with these new partnerships with Purdue, UMass and Arizona State). They get a huge chunk of the income, do all the marketing, assist with admissions, and even develop curricula used for many of the programs.

Perhaps I'm cynical, but to me, it looks like the rebranding of, say, Brandman as UMass Global is simply a fig leaf that evades this ruling.

Am I missing something?

[ss20ts]

Purdue, UMass, and U of A aren't partners. They bought the school. I'm not even sure why UMass bought an online school since the UMass system already has numerous online programs. That one makes no sense to me.

[Jonathan Whatley]

Brandman now UMass Global has always been nonprofit. It was originally the adult and distance division of the nonprofit b & m Chapman University, then was spun off into a nonprofit with its own separate accreditation but affiliated with Chapman. Then the acquisition switched its affiliation to UMass.

[studyingfortests]

Purdue, UMass, and U of A aren't partners. They bought the school. I'm not even sure why UMass bought an online school since the UMass system already has numerous online programs. That one makes no sense to me.

They bought the respective schools (in the case of Purdue, for $1) but with a long-term (15-30 year, if I remember correctly) agreement with one of the for-profit entities to do all of the marketing and other services in exchange for a large % of the tuition.  There was a well-researched article about this, and the greater trend; I'll see if I can track it down and post it.

Brandman itself may be nonprofit, but the same arrangement with the for-profit educational services company applies. If it was already nonprofit, it is curious why the affiliation change.

Edit: I could not quickly find the podcast that delved into the details in depth, but did find these articles which describe the structure and the problems with it:

https://www.aft.org/ae/spring2022/hall
https://tcf.org/content/report/how-for-p...?session=1
https://tcf.org/content/commentary/purdu...?session=1
https://philonedtech.com/purdue-universi...th-kaplan/
https://theconversation.com/purdue-kapla...eges-92642

[Jonathan Whatley]

Purdue, UMass, and U of A aren't partners. They bought the school. I'm not even sure why UMass bought an online school since the UMass system already has numerous online programs. That one makes no sense to me.

They bought the respective schools (in the case of Purdue, for $1) but with a long-term (15-30 year, if I remember correctly) agreement with one of the for-profit entities to do all of the marketing and other services in exchange for a large % of the tuition.  There was a well-researched article about this, and the greater trend; I'll see if I can track it down and post it.

Brandman itself may be nonprofit, but the same arrangement with the for-profit educational services company applies. If it was already nonprofit, it is curious why the affiliation change.

UMass Global/Brandman is partly part of this trend, partly categorically different I think. Although Brandman appears to work closely with an online program management company for some programs (with Strut, like UMPI also does), an OPM company doesn't appear to hold the same scale role in the background as e.g., Kaplan at Purdue Global or Zovio at U Arizona Global Campus.

The why here seems to be that UMass System was motivated and funded to expand quickly in adult online learning, and Chapman was happy to put the proceeds to its b & m core mission. This 2020 PhilOnEdTech blog post on early news of the UMass Global/Brandman/Chapman deal sheds some light.

[LevelUP]

I wonder how many teachers make $1 million per year?

30 students X $33,333 out of state tuition is $1 million per year (without even counting summer term)
30 students X $16,667 in the state tuition is $500,000 per year (without even counting summer term)

Where does all this money go?

[rachel83az]

You do have to also account for overhead, like utilities and possibly the cost of leasing or mortgaging the land where the school resides. People in the registrar's office, the financial office, and the advisors need to be paid. But, even with that, I'm sure that there is a decent amount of "missing" money that goes to unknown places.

[ashkir]

sports programs are causing tuition prices to almost double. https://www.nbcnews.com/news/education/h...s-n1145171

Way too many schools are taking half of their money and dumping it into sports.

California's highest paid professionals are all sports.
https://transparentcalifornia.com/salaries/all/

Lincoln Riley - $10 million per year
Charles Kelly $4,355,967 per year
Michael Cronin $4,056,488 per year
etc almost every top public paid school employee is a coach or hospital professor.

Texas classifies their bonuses, believed to be in the millions to coaches.

Illonois pays a single coach $5.7 million a year.

Florida pays football coaches around $6-$8 million per year. Dan Mullen got 7.57 million the year he was fired.

Louisiana State - 9.5 million a year to Brian Kelly

Alabama - 9.753 million per year for just 1 coach

Michiigan paid 95 million dollars to get Mel Tucker.

In Football/Basketball alone schools pay over $500 million per year just for the COACHES. Not the tuition, salary, mainentance, etc.

Remember, your tax dollars/federal aid pays for the stadiums, etc.

[NoStudentNoCry]

15 students X $16,667 in the state tuition is $500,000 per year (without even counting summer term)

15 X $16,667 is most certainly not equal to $500,000