WASHINGTON, D.C. . The Student Access, Student Choice (SASC) coalition of private sector colleges and universities today released the following statement in response to the Obama Administration’s plans to end or cut back regulations that are harmful for businesses and the …
In a recent op-ed (For-profit colleges need to be closely examined), Attorney General Jack Conway questions the business practices of some of Kentucky’s for-profit colleges. As leaders of career colleges in Kentucky, we find his argument that all private sector …
Politicians, Bureaucrats & Wall Street Short Sellers Collude To Limit Student Choice Washington, D.C. . The Hispanic Leadership Fund (HLF) today released the following statement from its President Mario H. Lopez in response to the Senate Committee on Health, Education, …
Broward County, FL . The President of the Broward County Veterans Council Bill Kling today released the following statement, criticizing the Senate Committee on Health, Education, Labor, and Pensions (HELP) and its roundtable on private sector colleges and universities: .On …
A top aide to Iowa Democratic Sen. Tom Harkin supplied an answer last year to a thorny question a friendly witness would face the next day at a pivotal hearing on for-profit colleges, raising questions of witness tampering, an email …
Top aides to Iowa Democratic Sen. Tom Harkin collaborated with a special interest group and a law firm with a financial stake in the matter to edit the written and oral testimony of a witness at a key investigative hearing last year, documents obtained by The Daily Caller show.
Officials from The Institute for College Access & Success (TICAS) and the James, Hoyer, Newcomer & Smiljanich law firm edited Josh Pruyn.s testimony for a pivotal Aug. 4, 2010 hearing before the Senate Health, Education, Labor and Pensions Committee (HELP), as did Harkin aides. (RELATED: Document suggests witness tampering by Sen. Tom Harkin.s office)
The Department of Education.s .gainful employment. rule has moved from threat to reality. And that reality will be a giant step backward for nontraditional students seeking to improve their employment prospects through higher education. So what does this new regulation really mean?
Last week the Department of Education released its final .gainful employment. regulations. These new rules will create piles of new red tape for career colleges and universities. Even worse, they will most likely result in fewer choices for students, lost opportunities for those seeking career andtechnical education and, ultimately, less innovation.
With more than two trillion dollars of debt put on the backs of American taxpayers over the last two years, it is not surprising that Washington’s spending spree also produced a bumper crop of waste, fraud and abuse.
With the publication of the .Gainful Employment. rule this past Thursday, we bear witness to one of the most egregious (albeit inventive) examples of the unseemly intersection of special interests and big government. Fraud and corruption take on a new face in the intersection of Wall Street, the not-for profit world, and the U.S. Department of Education (DoED).
Education & The Workforce Committee | June 3, 2011
Washington, DC . U.S. House Education and the Workforce Committee Republicans expressed strong opposition to the Department of Education’s gainful employment regulation. In a series of press statements released this week, committee members criticized the administration’s assault on student choice and the workforce, and pledged to fight the burdensome, job-destroying regulation. Read statement excerpts below:..
The New York Observer Headline: “Steve Eisman’s $7 Billion Hedge Fund FrontPoint On Death’s Door” (Max Abelson, “Steve Eisman's $7 Billion Hedge Fund FrontPoint On Death's Door,” The New York Observer, 11/26/10)
FrontPoint Part Of Insider Trading Investigations & Former Manager Charged:Federal Prosecutors Filed Charges Against Former FrontPoint Manager. “Federal prosecutors have filed securities fraud charges against a former hedge fund manager at FrontPoint Partners, making him the latest target in the government’s sweeping insider trading investigation. Joseph F. Skowron, the hedge fund manager, who specialized in health care funds, also faces charges for conspiring to hide his role in an illicit trading scheme, according to a complaint filed by federal prosecutors in Manhattan. Mr. Skowron, known as Chip, surrendered to the F.B.I. on Wednesday.” (Ben Protess, “Former Frontpoint Manager Charged With Insider Trading,” New York Times, 4/13/11)
FrontPoint Clients Are Seeking $3 Billion Amid Insider Probe. “FrontPoint Partners LLC got withdrawal requests from investors of about $3 billion for the end of the year after a manager of its health-care funds allegedly received insider information. FrontPoint, based in Greenwich, Connecticut, is working with several clients who have indicated they may rescind their redemption requests, and as a result it expects to start next year with $5 billion in assets, according to a letter sent to investors today. The firm had $7.5 billion under management at the beginning of November.”(SaijelKishan, “FrontPoint Clients Seek $3 Billion Amid Insider Probe,” Bloomberg, 11/26/10)
“Clients Pulled Money After A Portfolio Manager At The Firm Allegedly Received Tips About The Results Of Human Genome Sciences Inc. Trials For The Drug Albuferon, According To A Person Briefed On Matter.” (SaijelKishan, “FrontPoint Clients Seek $3 Billion Amid Insider Probe,” Bloomberg, 11/26/10)
“The Firm Had Been Pulled Into The Gargantuan Insider Trading Investigations Because Of The Charming Joseph F. ‘Chip’ Skowron III, Frontpoint’s Health-Care Funds Co-Head. He Allegedly Saved Frontpoint $30 Million Thanks To Illegal Information From A Man Named Yves M. Benhamou.”(Max Abelson, “Steve Eisman's $7 Billion Hedge Fund FrontPoint On Death's Door,” The New York Observer, 11/26/10)
Wall Street Short Seller Steve Eisman Serves As FrontPoint Portfolio Manager:“Steven Eisman’s The Portfolio Manager Of The Frontpoint Financial Services Fund, Which Began Operations On March 26, 2004.”(MIT Website, http://mitsloan.mit.edu, Accessed 11/22/10)
Eisman Was Featured In Michael Lewis’ Book “The Big Short” For Foreseeing Housing Meltdown And Making Millions By Shorting It. (Michiko Kakutani, “Investors Who Foresaw, And Jumped On, The Meltdown,” The New York Times, 3/15/10)
Eisman Has Access Over Government Officials Creating “Gainful Employment” Rule Even As He Profits From It:Eisman Met With Senior Department Of Education Officials In April, Less Than Two Months Before The Department Issued Its First Batch Of Regulations Targeting For-Profit Colleges. “On April 26, 2010, Steven Eisman, famed short-seller, met secretly with two senior DOE officials, Deputy Undersecretary of DOE Robert Shireman and Acting Deputy Assistant for Policy and Budget, David Bergeron. Less than two months later, the Department issued its first batch of regulations targeting only for-profit colleges.” (Lanny Davis, “Op-Ed, What Transparency By The Department of Education?” The Huffington Post, 11/26/10)
“The Department Didn’t Disclose This Eisman Meeting With Such Top Officials . Only An Enterprising Reporter At Fortune Dug It Out And Wrote About It Last Month.”(Lanny Davis, “Op-Ed, What Transparency By The Department Of Education?” The Huffington Post, 11/26/10)
According To Fortune Reporter, The Meeting Was To Discuss A Speech Eisman Was About To Make. (David Kaplan, “Did Steve Eisman Unduly Influence The Education Dept.?” Fortune, 11/2/10)
“The DOE’s Discussion With Eisman In April Had Involved Two DOE Officials: David Bergeron, An Acting Deputy Assistant Secretary For Policy And Budget, And Robert Shireman, At The Time A Deputy Undersecretary And The Key Critic Of For-Profit Abuses, Who Joined By Phone.”(David Kaplan, “Did Steve Eisman Unduly Influence The Education Dept.?” Fortune, 11/2/10)
Two Days After Meeting, DOE Official Shireman Gave A Speech Comparing For-Profit Colleges To Financial Institutions That Caused 2008 Meltdown; Twice Using Word “Subprime.” “Two days after that discussion with Eisman, on April 28, Shireman delivered a speech in St. Paul at the annual meeting of state regulators in which he likened for-profit colleges to the financial institutions that took excessive risks and caused the 2008 meltdown. He twice mentioned ‘subprime,’ though his rebuke was less colorful than the one Eisman later offered at the Sohn conference and in congressional testimony.” (David Kaplan, “Did Steve Eisman Unduly Influence The Education Dept.?” Fortune, 11/2/10)
“Eisman Also Had An April 15 Telephone Conference With Staffers From Harkin’s Health, Education, Labor And Pensions Committee, And Met With Harkin Staff In May, According To Justine Sessions, A Spokeswoman For The Senator.” (Kambiz Foroohar And Esme E. Deprez, “Big Short Eisman Vies With Goldman In Faceoff Over For-Profits,” Bloomberg, 1/24/11)
Eisman Gave Highly Publicized Speech In May 2010 Comparing For-Profit Colleges To Subprime Mortgage Industry. “The highly publicized speech at the Ira Sohn Investment Research Conference in Manhattan on May 26 was titled ‘Subprime Goes to College.’ In it, Eisman compared for-profit schools to the subprime mortgage industry and warned of $275 billion of defaults by students at for-profits over the next decade . unless the DOE adopted new regulations. After his speech, shares of for-profit education companies ITT Educational Services (ESI) and Corinthian Colleges (COCO) each declined 3%.”(David Kaplan, “Did Steve Eisman Unduly Influence The Education Dept.?” Fortune, 11/2/10)
During Presentation, Eisman Noted He Was Shorting Private Education Stocks. “CNBC’s Herb Greenberg is reporting that hedge fund manager Steve Eisman has recently established a short position in Strayer Education (NASDAQ: STRA). On May 24th, Eisman revealed that he was shorting private education stocks in a presentation entitled ‘Sub-prime Goes To College.’” (Scott Rubin, “Steve Eisman Is Shorting Strayer,” http://www.benzinga.com, 8/30/10)
Mother Jones Headline: “Steve Eisman’s Next Big Short: For-Profit Colleges” (Andy Kroll, “Steve Eisman’s Next Big Short: For-Profit Colleges,” Mother Jones, 5/27/10)
“A Month Later, In June, Eisman Made The Same Remarks In Testimony Before The Senate Education Committee.”(David Kaplan, “Did Steve Eisman Unduly Influence The Education Dept.?” Fortune, 11/2/10)
“In An Interview Last Month [October] Eisman Declined To Say Whether His Short Positions Benefited From The Price Declines After The Sohn Speech Or Senate Testimony.” (David Kaplan, “Did Steve Eisman Unduly Influence The Education Dept.?” Fortune, 11/2/10)
Students at career colleges have a higher completion rate (38%) than students at community colleges (17%) three years after enrollment.
Career colleges have a graduation rate nearly 20% higher than that of public institutions.
Students enrolled in a 2-year (or shorter) career college program had total income gains, on average, of $7,900, compared to comparable students at public schools ($7,300).