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Wednesday, June 5, 2019

Purdue University doubling down with subprime Purdue University Global


Despite severe and growing financial losses and several campus closings, Purdue University Global (PG) is being kept alive by its famous cousin, the real Purdue University. Purdue.edu now prominently displays and links to Purdue University Global.  Purdue’s leaders also proudly support PG as its online school for adult learners, who they acknowledge are not in the same class of students as those at the real Purdue.  

The scheme has gotten so fraudulent that Purdue University Global (formerly Kaplan University) is freely appropriating Purdue's 150-year history, its world-class reputation, and its famous alumni in creating an unethical if not illegal bait and switch throughout social media.

Purdue Global is not a world-class institution. Its educational quality is mediocre, and its student outcomes rival some of the worst actors in for-profit higher education. Global's numbers:
  • 83 percent (320 of 1,910) of PG instructors are low-wage adjuncts
  • spends only 18 cents for every dollar it receives in tuition
  • 20 percent 6-year graduation rate
  • 26 percent student loan repayment rate
  • 53 percent student loan default rate over 5 years
  • More than 30 percent of its enrollees do not even pass basic composition.*
But that's not the story that Purdue University Global says with the help of QuinStreet, a predatory lead generator.

Recently, I visited the online chat that Purdue University Global uses to enroll students, and what I found was extremely disturbing. Not only did they use the Purdue University history, but also its world-class reputation to sell the school. One enrollment person mentioned astronaut Neil Armstrong in trying to sell me a degree.

How long can this scheme continue? Judging by word of mouth, not too long.

*Information provided by Purdue Global insider.

Thursday, May 2, 2019

Purdue University Global Continues to Defraud Servicemembers, Veterans, and Working Families

Related articles:

"The school that systematically misleads students or enrolls those who don't have the capability of succeeding is unlikely to last long. It will have a difficult time making money, and it will build problematic word of mouth in the community in which it operates."--Kaplan CEO Andrew S. Rosen (p. 169) in Change.edu
In August 2018, I posted a report about Purdue University and its new acquisition, Purdue University Global. The Big-10 school purchased the former Kaplan University from Graham Holdings Company for the sum of $1, while Kaplan Higher Education would be paid service fees for managing the business. The deal sounded like a windfall for Purdue University, but it really wasn’t. Purdue University Global is in deep financial trouble, and Purdue University is liable for any losses related to Purdue Global’s fraudulent business activities.
 
In my earlier report, I alleged that Purdue University Global was using false claims to enroll working people, especially servicemembers and their families. Their advertising and marketing claims offering a “world-class” education were patently false. But their advertising was compelling to the poorly informed. Purdue Global was also employing QuinStreet, a questionable internet lead generator.

In truth, Purdue University Global’s educational quality is mediocre at best, and its student outcomes rival some of the worst actors in for-profit higher education. Global's numbers:
Purdue Global has been able to get away with these fraudulent practices because it does not receive proper oversight. The US Department of Education, the Department of Defense, the Department of Veterans Affairs, the Enlisted Association of the National Guard of the United States, and the Council of College and Military Educators have all looked the other way, as working families, and especially servicemembers and veterans, have been fleeced by the subprime school.

In April 2019, little has changed in terms of Purdue Global’s fraudulent claims. And as Purdue loses more money (it had a $38 million net operating loss in FY 2018), it will have to make bold moves to survive. While little public information is available, we do know that Purdue Global continues to spend money on television and print ads.
 
The ads appearing in the April 15, 2019 editions of the Army, Navy, Air Force, and Marine Times made all the same claim, that the school offered a "world-class" education. Purdue Global also placed ads on tv shows like MTV’s Catfish, which was the ultimate in irony. The show Catfish exposes people who pose as something more than they are, deceiving the person on the other end of the Internet connection.

Saturday, January 26, 2019

Deceived by DeVry

Subprime DeVry University Continues to Deceive Consumers
In 2019, DeVry University continues to deceive consumers through its DeVry website and online recruiting. As a subsidiary of Cogswell Education and Palm Ventures, a shoe-string operation in comparison to its previous parent company, matters could get worse. This briefing illustrates some of Devry’s current deceptive practices.

Lack of Transparency Used For Location Bait and Switch 
As a selling tool, DeVry University claims to have more than 45 convenient locations. However, it has closed about 50 campuses and learning sites between 2011 and 2019. Closures have occurred in cities throughout the U.S., including Pittsburgh, Detroit, Houston, Indianapolis, Memphis, Milwaukee, Minneapolis, Portland (OR), Seattle, St. Louis, and Tampa. DeVry’s campus closing determinations have been far from transparent, even to employees
In January 2018, several DeVry schools we believed were planned for closure remained on the “Find a Location Nearest You” map. These locations included Anaheim, Bakersfield, Cherry Hill, Colorado Springs, Dayton, Oakland, Oklahoma City, and Palmdale. By July 2018, all of of these learning locations were reported to the US Department of Education as closed schools. While these locations have been removed from DeVry’s map, prospective students had been led to believe that the locations existed.
Typically, the school closing process, known as “teach out,” takes 12-18 months. But in the case of DeVry’s closings, teach outs have occurred with less warning, leaving students and teachers little time to react to their campus closings. This lack of transparency has also allowed DeVry to sell its convenient locations even as it plans to close campuses that may be closest to prospective students. With a recent history of campus closings and the sale of DeVry to Cogswell Education, we anticipate several additional closings of “convenient” but unprofitable learning locations that may already be slated for closure.

Financial Aid Bait and Switch
DeVry has advertised a variety of loan options, including Federal Direct Loans, Federal PLUS Loans, Perkins Loans, and private student loans.
Although DeVry provides a list of potential lenders for private student loans, interest rate information does not appear to be readily available from the site.
When consumers use the Department of Education's College Navigator to get the net price for DeVry, they are redirected to a DeVry lead generator.
Pricing inconsistencies exist. One anonymous DeVry insider said this about the pricing:
There are three completely different total program costs potentially given to prospective students and differing lengths of the programs."
"DeVry’s admissions advisor’s cost calculator used to sell DVU on the phone, shows one amount. The website’s tuition chart lists something totally different, and finally the academic catalogue lists a third completely different figure with students."
"Also most admissions advisors are telling prospective students it is possible to complete a bachelor’s degree in 2 years 8 months! Then Student Finance tells students the truth that its 4 years at best due to lack of course availability and practicality (not taking 20 credit semesters). The catalogue info backs up Student Finance."
"I can’t understand how DOE or someone hasn’t caught that yet. You could call an advisor today go through their admissions planning and get cost 1, then look in the website tuition chart for 2, then look in the catalogue for a 3rd totally different cost and time est. your advisor just told you."
Former DeVry students owe more than $12 billion in student loan debt. The 5-year student loan default rate at DeVry is 43 percent. 

TechPath and Other Claims about Cutting Edge Technology
DeVry leads its potential customers to believe they will be learning innovative skills using cutting edge technology. DeVry advertises its TechPath program, a “distinctive learning approach that grew out of the understanding that students need a different kind of education to prepare them for a world that’s tech-intent, constantly changing and connected as never been through the digital mesh.”
DeVry insiders, however, have reported that campuses have not kept up with technology. And online teaching may be counterproductive for many students.
Brookings Institution Research indicates that the average DeVry University student takes two-thirds of his or her courses online with negative effects on course GPAs and persistence.

Decline in Educational Quality
Teaching staff have reported that educational quality has declined significantly as online class sizes increased. One former instructor stated:

“And, with the cap removed, faculty were teaching 40 or more students in online classes in a cultural contest that promoted the student to customer, obviating any faculty authority to establish rules and at times, even basic human decency. The ax, ever ready to fall on our necks, had us all rather desperately seeking other employment, while doing all we could to "persist" (pass) students with the highest possible grades, futilely hoping to preserve our ECE (student evaluation) scores. Students who lacked skill, who couldn't even submit work, their backs to the wall, often lashed out verbally and in the evaluation process. A student caught plagiarizing could get pay back at evaluation time, and they did….”

A former instructional designer who worked at DeVry more than five years added that "You will not have a voice...DeVry "used to be innovative and desired to push the edges of online education courses with creative solutions to interactivity...but leadership changed and bean counters began shaving copper at the downfall of the student learning experience...such a sad demise from the glory days."

DeVry Claims to be Military Friendly 

DeVry enrollment representatives claim that DeVry is military friendly, and the website states “[f]rom training Army Air Corps instructors on electronic devices in the 1940’s to being one of the first schools approved to accept the original G.I. Bill following WWII, we’ve been education and supporting America’s military personnel and the veteran community for decades.”

However, VA’s GI Bill Comparison Tool reveals more than 200 student complaints, as well as a caution warning related to the recent Federal Trade Commission settlement and how the school is operating under Heightened Cash Monitoring.

While DeVry campuses claim to offer various veterans programs, including VetSuccess on Campus, 8 Keys to Veteran Success, and a Student Veteran Group, one DeVry employee stated that "Students are tossed around by an organization that doesn't care nor have a clue of what it's doing. Disabled Veterans ADA Accommodations are not properly managed or enforced."

Friday, August 10, 2018

Purdue University and Its Subprime College Cousin Committing Fraud

Purdue University Global is not Purdue University. It's far from it. In fact, Purdue University Global is actually the former Kaplan University, a once declining for-profit college with a subprime history.
Purdue Global, the real Purdue's subprime cousin, is an open enrollment institution with more than 30,000 working class students. In 2016, then known Kaplan University included more than 6,000 military service members and 5,800 military veterans. The school today still heavily targets them.

[Purdue University Global is targeting service members and veterans through Army Times, Navy Times, and Marine Times, using practices that may violate DOD rules.]

The faculty, comprised mostly of poorly paid adjuncts, may be good, but not great. There are a handful of small campuses, from South Portland, Maine to Omaha, Nebraska. But most of Global's students are working exclusively online, which enables the school to keep costs down.

Purdue University Global's graduation rate and student loan debt numbers are all subprime. The newly rebranded enterprise has a 23-39% graduation rate, a 25% student loan repayment rate, and a 5-year student loan default rate of 53%. But you won't find the information if you type in "Purdue University Global."
As of August 8th, the College Navigator and College Scorecard have no consumer information for Purdue University Global. Instead, you have to search for Kaplan University, its former name.
According to the College Scorecard, the median income for those who have attended Kaplan University/Purdue Global is $33,500 a year --far from the $55,000 that Purdue University students make after attending, and not enough to pay off student loans.
Purdue Global's Concord Law School has a California Bar pass rate of 16-27%.
The school's subprime status hasn't stopped Purdue University Global from using its Big 10 cousin's history and prestige and fraudulently offering a "world-class education" to unwitting customers.

This bait and switch ploy is not happening without the consent of the older, wealthier cousin, Purdue University. Purdue University now owns the school once known as Kaplan University.

[Image below: The lush Purdue University campus in West Lafayette, Indiana is used to sell Purdue University Global. But credits from Global may not transfer from the subprime college to the Big 10 school.]

[Below: Purdue University President Mitch Daniels is also a Senior Administrator at Purdue University Global.]

[Image below: Purdue University Global uses a predatory lead generator, QuinStreet, to find unwitting consumers.]
[Image below: Purdue University Global online enrollment representatives use the prestige of Purdue University to peddle the school.]

False and misleading information like this will not put Purdue University Global on the map. Consumers will eventually see through the deception. But it will make Purdue University, the real Purdue University, the target for government fraud investigations.