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.

Friday, July 20, 2018

Subprime College Crash Continues Under the Radar

The subprime college crash continues for the seventh consecutive year with little attention from the government or media.

Subprime is a more appropriate name than for-profit, because several non-profit schools offer limited value at a high price. Campus closings, steep decreases in enrollment, low student loan repayment rates, low graduation rates, and low returns on investment are strong  indicators of "subprime."

University of Phoenix, now part of Apollo Global Management, continues to close campuses. In total, they have closed more than 450 campuses and learning sites. I expect UoPX to close half of their remaining campuses in the next 12-18 months.

Art Institutes are closing most of their campuses in 2018 after being taken over by Dream Center Education Holdings.  David Halperin has been covering the story in the Huffington Post, but it has received little attention.  Argosy University, another system of DCEH schools, is teaching out at least 14 campuses.

DeVry University will be closing more campuses after their parent company, Adtalem, dumped their brand and practically gave it away to Cogswell Education/Palm Ventures. They have already closed eight sites in 2018. Over the past few years, DeVry has closed 44 of their 90 learning sites.

National American University (NAUH) is in major trouble. Their stock price has been struggling at $1 a share, making it vulnerable to delisting. T. Rowe Price is keeping it propped up. NAUH recently mortgaged their real estate for $8M.

Zenith (ECMC) is completely out of subprime college ownership. The former Corinthian Colleges was propped up by the non-profit student loan company with help from the government.

Kaplan University is now operating as Purdue University Global. But the school remains a subprime effort despite fraudulent claims that it offers a "world-class education."