Higher Education Inquirer : July 2019

Tuesday, July 30, 2019

HEI Resources

[Updated January 8, 2023)

Bibliography

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Activists, Coalitions, Innovators, and Alternative Voices

College Choice and Career Planning Tools

Innovation and Reform

Higher Education Policy

Data Sources

Trade publications

Saturday, July 20, 2019

When does a New York college become an international EB-5 visa scam?

In 2011, Sherry Li hatched the idea to create a $6 billion Chinese Disneyland in the Catskills, with a for-profit college, a casino, shopping venues, eateries, Chinese-themed rides, and a community full of wealthy Communist Chinese immigrants...just a few miles away from nearby villages of American peasants. The ideas were Trump-like, and like several of Donald Trump's business efforts, most likely to fail without political ties at all levels, and lots of money. In this case, Li needed hundreds of millions just to start, most from wealthy Chinese investors. Together with her business associate Mike Wang, Li paid out large sums of money to establish political ties, but politicians claim not to know her. In 2019, this fantastic scheme, whittled down to a school with no buildings, no students, and one person sitting at a desk, looks more like a swindle. But without victims coming forward, and most are unlikely to come forward, this relatively unknown businesswoman will continue what can now be called a scam.

(Note: I have tried communicating with Sherry Li and Mike Wang, her media director, several times via phone, email, and social media. Someone at the Thompson Education Center does answer the phone, and says "they are out of the country." But this person cannot tell me when they left or when they are returning to the US. When I mentioned that their social media was not updated or even monitored, she admitted "we're not operating anything.")

Related link: Visa Mill Promoters Drop $760K on Key Republicans and NY Governor Andrew Cuomo (2018)

China City of America is a multi-phased construction project planned for the town of Thompson, Sullivan County, in the Catskill Mountains region of the U.S. state of New York. The current project, Thompson Education Center (TEC), is a proposed college for foreign students, situated in a 573-acre parcel which borders a state-protected wetland.

In December 2011, China City LLC applied to be a USCIS recognized EB-5 visa Regional Center, but the business was never approved by US Homeland Security. The EB-5 immigrant investor program grants permanent residency to foreign investors in exchange for job-creating investments in the United States. The 880 Regional Centers sponsor capital investment projects for foreign entrepreneurs seeking green card status. Approximately 85 percent of EB-5 participants are Chinese, but there is a quota system, and waits for Chinese applicants can be as long as 15 years.

More than a year later, China City America publicly presented its idea to build a 2,200-acre Chinese theme park, hotel, and casino for an estimated $6 billion. According to The Economist, the plan "would attract 1.5 million visitors annually" and "transform the struggling economy" in upstate New York while seducing thousands of wealthy Chinese investors through the federal EB-5 visa program. The initial capital investment of $325 million would include $127.5 million from EB-5 investors, $132.5 million from equity investors, and $65 million from the U.S. government.

According to the scheme, each Chinese client would pay a small investment up front: a $65,000 non-refundable deposit. One catch was that in return, Li's business would have to quickly create at least 10 new jobs per investor. Local, national, and international media articles conveyed a variety of interests and concerns about the project while local officials and residents expressed both hope and skepticism.

[The initial presentation by Sherry Li starts at about 7:15 in this Youtube video. The comments are in some cases brutally honest, in other cases racist.]

Sherry Xue Li, an Oyster Bay, Long Island businesswoman, has been the chief executive officer and founder of China City of America. Li reported to the Associated Press that she came to the US in 1991, at the age of 19, and has a background in development and finance. Everything about her wealth seems to be a mystery that can only be gleaned from detective work by media outlets and groups like Defeat China City of America on Facebook.

According to her LinkedIn page, Sherry Li has a master's degree from NYU and was a Vice President of Hengli International Corporation (1995-1998), Executive Assistant at Money Securities (1997-1999), and President of China Financial Services (2003-2011).

SEC records show that Sherry Xue Li had been a major shareholder in BRS Group, Inc., a Delaware company dealing in scrap copper imports to China and China Electronic Holdings. Sherry Xue Li sold her stake in China Electronic in 2010 and BRS in 2011. In the video you will see in a moment, Sherry Li also mentions that she has a young child.

According to Lachlan Markay at The Daily Beast, "Li rarely, if ever, talks to the press, issuing her statements mainly through press releases in which she boasts of her meetings with Republican officeholders and Trump administration officials." The other officer of the Thompson Education Center is Mike Lianbo Wang who has appeared in a few TEC press releases.

At a 2013 town council meeting where Sherry Li first pitched the plan, she stated that "Each dynasty will have its building and will have rides go with it," China City’s website features golden dragons, and projects an initial investment of $325 million — with $10 million going to a "Temple of Heaven," $24 million on a hotel and entertainment complex, and $20 million to construct a 'Forbidden City.'" In its second meeting with the town council, Thomas J. Shepstone represented China City. Shepstone was known in the region as a defender of fracking. According to Paula Medley of the Basha Kill Area Association the project couldn't be developed on the scale proposed by China City without damaging environmentally sensitive wetlands.

In 2014, Town of Thompson supervisor Bill Rieber became frustrated with Li's constantly shifting plans and the Town of Thompson declined to approve the project, but the project was granted approval for three wells in 2016. In the same year, Sullivan county lawyer Jacob Billig sued China City of America for failing to pay him fees for service. A settlement was reached out of court for $25,000.

Thompson Education Center

While the larger China City project has stalled, the Thompson Education Center (TEC) is still being planned. The proposed for-profit college campus is on a 573 acre parcel of land near Route 17, Exit 112, which borders Wild Turnpike in Thompson, New York and extends to the town of Mamakating. The mostly undeveloped land for the project is in proximity to an environmentally protected wetland, the Harlen Swamp Wetland Complex. It is also near Monticello, New York, a village with a poverty rate of about 36 percent. TEC press releases have promised that the "high-end" project would create at least 20,000 jobs.

Thompson Education Center plans to have a school of business, a film & arts school, and programs in nursing and medical training, culinary arts, high school equivalency and executive and vocational training. The project includes four classroom buildings, student dormitories, student townhouses and a student center. TEC claims to have entered into agreements with US and Chinese high schools, colleges, education institutions and systems to provide students to the institution. TEC claims also that it has been working with several U.S. accredited colleges on undergraduate programs and ESL programs.

In a January 2017 presentation to the Monticello Rotary, Sherry Li claimed that China City had executed letters of understanding with the Catskill Regional Hospital for its nursing program, and with Phoenix, a Chinese media company that has educated 80,000 students.

According to the Wall Street Journal, in June 2017 Lianbo Wang donated $329,500 to a joint fund between President Donald Trump’s campaign and the Republican National Committee (RNC). About $86,000 was diverted to the RNC’s legal fund. Politico also reported on the large donations by Wang and Li.

In August 2017, Thompson Education Center appeared before the Town of Thompson, with a plan for a campus that would include 732 dorm rooms for 2,508 students, 276 homes for faculty members, and a college president’s house to be built in a “Founding Trustee Village.” Another source stated that the campus would also include a community center, three recreational buildings, three playgrounds, a sports stadium, a performing arts center, a library and museum, a conference center, a business center, a medical center and an inn for visitors.

In September 2017, TEC sponsored a golf tournament benefiting the Catskill Regional Medical Center (CRMC) Foundation. Ms. Li also visited Congressman Steve Stivers, Chairman of the National Republican Congressional Committee, in Washington, D.C.

In 2018, residents sought for a revocation of a permit that the Fallsburg, New York building department had granted for a 9,000-square-foot building, claiming that the building was not a residential structure. The property is adjacent to the Thompson Education Center and is owned by Sherry Li.

Epoch Times reported that Sherry Li was featured in Chinese media promoting the school "as an 'easy' way to get an American green card." The May 17, 2018 Economist issue noted that Chinese media said that "investors in the scheme will find emigrating to America 'so easy.'" But the current wait time for Chinese nationals to receive an EB-5 visa is a decade and a half, and a new regulation for EB-5 visas may substantially raise the price for obtaining a green card.

In January 2019, at the Ivy Football Association Dinner, Sherry Li's Thompson Education Center said they planned to provide application counseling, exam preparation and tutoring for students by The Butler Method. Then in February, TEC announced plans to offer the Ivy League Prep program, to give students with sports trauma treatment-related classes, noting that the courses could be "transferred to Ivy League universities for college credits." At the time, TEC also reported that the project received three well permits, and that the construction road was completed, which should not have been news--the permits had been issued in 2016. The for-profit college with no buildings and no students also reportedly signed contracts with schools in China "to deliver 2,700 nursing program students every year." On a trip to Thailand in March 2019, Ms. Li met with the president of Thonburi University and discussed educational cooperation between TEC, its partners schools and colleges, and the Bangkok school.

In the same press release, Sherry Li's organiation reported that

"College Town covers an area of 650 acres, with over 5 million square feet of the construction area for educational campus and ancillary facilities. TEC has partnered with many prestigious universities in Unites States, planned to establish courses including, business schools, media arts, medical academies, culinary, various MBAs, special license training, high schools and their affiliated facilities to create an intelligent high-end university community. In 2019, Thompson Education Center will work with International University Alliance under the Ministry of Education to open 50 Thompson Education Center Extension campuses in China."

Meanwhile the Facebook and Twitter accounts for Thompson Education Center lie dormant: a giveaway that something is very wrong with this picture.

Thursday, July 11, 2019

Music Videos of the College Meltdown

While I was updating my College Meltdown bibliography and writing a review of College is Bullshi*t, I found an enormous number of Youtube music videos dedicated to student loan debt. Scholarly sources are fine, but they don't get people to move. These videos vary in quality and genre, from blues to rap, to pop, heavy metal, and country. But you gotta listen. My favorites are Eatin' Me Alive by Ramy B. and Dee-1's Sallie Mae Back. An extremely popular tune, Stressed Out by Twenty-one Pilots, has just one line about student loan debt, but definitely hits on the consequences of youth and making choices.

Works Cited
B., Ramy. “EATIN' ME ALIVE (STUDENT LOAN RAP).” YouTube, YouTube, 10 Feb. 2019, www.youtube.com/watch?v=C44O_GUtcQs.

chescaleigh. “Beyoncé ‘Countdown’ Parody: Student Loan Countdown.” YouTube, YouTube, 8 Oct. 2011, www.youtube.com/watch?v=96KiSEMHy7Y.

Cornell, Charles. “Student Loans, You've Got Me By The Balls - Charles Cornell.” YouTube, YouTube, 12 June 2019, www.youtube.com/watch?v=7aJWUA3-E0E%2Bhttps%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv.

Dee1music. “Dee-1 - Sallie Mae Back (Official Video).” YouTube, YouTube, 11 Feb. 2016, www.youtube.com/watch?v=JqbXQa05Z6c.

Dorsey, C. Richaude. “Studen Loan Song.” YouTube, YouTube, 3 Nov. 2016, www.youtube.com/watch?v=JZG8H-1pwu4%2Bhttps%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv.

ebonysongstress. “Student Loan Song by C. Richaude.” YouTube, YouTube, 5 Jan. 2008, www.youtube.com/watch?v=ILcTrUHqHa0&list=PLBiTf7f_nVjgtZ7HCrrPEHY9xvIIHSkXd.

Grosscup, Ben. “‘Four Years of College’ (Parody of ‘Sixteen Tons’ by Ben Grosscup).” YouTube, YouTube, 28 Feb. 2016, https://www.youtube.com/watch?v=_sWosZ2qshc

Hammer, Dave. “Student Loan Blues.” YouTube, YouTube, 2 Apr. 2013, www.youtube.com/watch?v=QQtb8EtD458%2Bhttps%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv.

Harris, Lisa E. “Sally Mizzle (The Student Loan Song).” YouTube, YouTube, 6 Oct. 2016, www.youtube.com/watch?v=_WHXc7FTkPQ.

Lazer, Glenn. “Student Debt Metal Song.” YouTube, YouTube, 13 June 2019, www.youtube.com/watch?v=w5JBNcTDtVo%2Bhttps%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv.

pincgator. “PINC GATOR STUDENT LOAN SONG.” YouTube, YouTube, 29 Oct. 2008, www.youtube.com/watch?v=qD8KVaMbF7E.

“Twenty One Pilots: Stressed Out [OFFICIAL VIDEO].” YouTube, YouTube, 27 Apr. 2015, www.youtube.com/watch?v=pXRviuL6vMY.

Wilson, David. “Simple Mind (The Student Loan Song) by David Wilson.” YouTube, YouTube, 6 June 2016, www.youtube.com/watch?v=hDVtuoPmTPQ%2Bhttps%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv.
?v=_sWosZ2qshc.

Sunday, July 7, 2019

Mental Health: What Happens When Big 10 Grads Think "College is Bullsh*t"?

Pictures speak louder than words. And emotions move people more than rationality. And the harsh words that Mike Newman (aka Ekim Namwen) speaks in his video "college is bullsh*t" express the anger and depression of a 30-something year old Ohio State graduate who gets it. While Newman's work is thoughtful and original, the emotions are common in many once-aspiring graduates from state flagship universities who never quite get ahead.

If you can deal with the critical tone and the emotions expressed in this video, it's well worth looking at it from start to finish. If not, start looking at it from 28:30. Newmans's intent has been to finish a serious decade-long documentary on higher education, but two recent suicides at OSU led him to speak out against the madness of higher education: its outrageous costs, its greedy anti-labor administration, and its uncaring bureaucracy.

The College Meltdown has been going on for more than a decade, and things are getting worse. Books critical of higher education could fill a book case or two. That's admirable. And of course, there are some great exceptions amid the meltdown, such as free community college, and potential free market innovations such as TuitionFit, but the general direction of US higher education is downward.

The current reality is that millions of Americans are traumatized and silently suffering. Many Americans regret borrowing so much money to get the college degree they obtained, if they got a degree at all. The average family holds about $47,000 in student loan debt. And aside from a few student debt groups (like the Debt Collective and I Am Ai) and a few adjunct groups, there is very little resistance. Calls for change are met by other calls (by the rich and powerful) to abandon the dreams of higher education.

We can't blame the problems of higher ed just on higher education. US inequality has been increasing for a half century, and it displays itself across society, from "savage inequalities" in the college pipeline to how end of life is medicalized and made so expensive, at the expense of state and federal budgets.

But there has to be some recognition of the damage that has been done by business minded college administrators and college boards, by the madness of crushing student loan debt and underemployment, and the system that turns almost everything good into sh*t.

Thursday, July 4, 2019

US Departments of Education, Defense, and Veterans Affairs Shirk Responsibilities to Servicemembers, Veterans, and Their Families

As a military veteran working to expose some of the most predatory practices by subprime colleges, the idea that anyone at the US Department of Education, US Department of Defense (DOD) or Department of Veterans Affairs (VA) would say "Thank you for your service" rings hollow, especially on the 4th of July.

The US government has systematically shirked its oversight of subprime colleges that target servicemembers, veterans, and their families, especially during the Trump Administration.

I have to give some credit to President Obama for trying to do something against these schools, with Executive Order 13607, but much of that work has been undermined by DOD and VA officials.

I have filed a FOIA and a complaint about Waste, Fraud, and Abuse to DOD, but have been told not to hold my breath. And I have also filed a complaint with the VA, but have even less faith that they will do their job.

Tuesday, July 2, 2019

Alaska is Leading the College Meltdown. Who's Next?

Related graph: State by State Funding for Higher Education, 2008-2017

In an recent article, titled "Enrollment declines, campus closings, economic losses, and the hollowing out of America," I posted the state-by-state enrollment drops from 2011 to 2018. These numbers are posted here. Alaska was at the top of the list, with a 31 percent drop in enrollment. However, there are other states with significant enrollment losses.

Besides Alaska, New Mexico, Hawaii, Michigan, Illinois, Oregon, Missouri, West Virginia, Montana, Minnesota, Arkansas, Louisiana, Kentucky, Indiana, Oklahoma, Pennsylvania, Ohio, and Wisconsin have had the largest enrollment losses. What states do about the losses has varied, from austerity and tax cuts on the right side to prison reduction and social investments, such as free community colleges on the left.

What drives austerity, and higher education cuts, depends on many factors, and politics are important. State economies, movement of people and companies out of state, obligations to K-12 education, Medicaid, and infrastructure, enrollment losses and tax structures also play a large part in how dramatic these cuts will be. Alaska's recent cuts are a worst case scenario, but that doesn't mean we won't see dramatic funding cuts in other states and counties in the coming years.

I was reminded by one College Meltdown reader that Alaska was not the first state to feel Republican slash and burn tactics. Louisiana, under Bobby Jindal, felt it.

In fact, eight states cut funding more than 30 percent from 2008 to 2017: Arizona, Louisiana, Illinois, Pennsylvania, Alabama, Oklahoma, South Carolina, and New Mexico.

While Democrats and Republicans are diverse within their own parties, we can take a first look at the situation by charting higher education enrollment and state control and make the hypothesis that states with the largest enrollment losses and Republican control of state politics are most vulnerable to austerity, at least in the short run.

My first guess for the most vulnerable states? Missouri, West Virginia, Arkansas, Kentucky, and Indiana, and as many as 18 other states, because they are Republican controlled. But many others will have to make tough economic decisions, to increase taxes, reduce funding, and to make cuts elsewhere. This is especially true in states like Illinois, Michigan, and Wisconsin. The problem with raising taxes is that many people don't like to pay taxes, and they see higher education as an individual choice rather than a public investment. In some cases, they also see (or hear about) administrative largesse and university amenities that border on insanity.

Smart leaders will look for smart (and just) answers.

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