Final Concert: San Diego Symphony
Garrett Harris 10:39 p.m., May 24
Stocks of for-profit colleges got slaughtered again today (Aug. 6) as the federal government appeared to be making bold steps to do something about the huge default rates at such schools. San Diego's Bridgepoint Education plunged 5.25% to $14.98. It was $27.22 on April 20. Washington Post stock plummeted $31.05 or 7.6% to $377.56. The Post's Kaplan for-profit education operation accounts for two-thirds of the company's revenue and operating income. The U.S. Senate heard testimony about a General Accounting Office investigation finding dubious recruiting tactics, high default rates and low graduation and job placement rates at Kaplan and 14 other institutions, according to Yahoo! Post Chief Executive Officer saw video shot by undercover investigators of misrepresentations by Kaplan's admissions representatives. Graham found them "sickening" and vowed reform.
A Congressional committee headed by Sen. Tom Harkin asked 30 for-profits for information. Bridgepoint said it was among them. It has been investigated by the Department of Education's Office of Inspector General. There has been no final report on that probe.
Former San Diegan Charles Jajdelski is suing Kaplan in Nevada federal court. He began working at Kaplan-owned Maric College in San Diego, then transferred to Vegas when Kaplan bought an institution there. Among many things, Jajdelski says that he saw Kaplan officials destroying diplomas "because the students were phantom," says San Diego attorney Mike Aguirre, one of three lawyers representing Jajdelski. He reported findings of massive irregularities to Kaplan officials and was fired. He also turned over his findings to the federal government. He is suing on employment-related claims.
Comments
refriedgringo Aug. 9, 3:20 a.m.
Makes me wonder how many of those student loans from the government are phantom.
dbauder Aug. 9, 11:10 a.m.
Response to post #1: I hope the governments' various investigations probe that very question. Best, Don Bauder
Visduh Aug. 9, 7:47 p.m.
This story should be getting more comments than some of the local political corruption topics. If Bridgepoint goes under it will bring plenty of local job losses. Doubt that? Just look at the size and shape of the offices the company operates. This points out the value of accreditation, non-profit status, and knowing others who have taken the program. Without those things, any grifter can make his diploma mill look like the next Harvard. Too bad that the private sector cannot run something like Bridgepoint is attempting without the fraud and corporate welfare.
Janedoe Aug. 10, 6:51 a.m.
Spin control much Visduh? Not to mention, in paragraph two you'll notice Bridgepoint is included in the organizations they are requesting information from. You're not quite off the hook yet.
dbauder Aug. 10, 8:14 a.m.
Response to post #3: Visduh, you are absolutely right. It is too bad the private sector can't run for-profit colleges in a respectable way. (I suppose some do, but examples are few and far between.) But these schools have taken the greedy approach, and too many (if not most) have become boiler rooms/diploma mills. It is certainly disappointing. In fact, the behavior of the private sector in almost all areas of the economy has been extremely disappointing in the last quarter century. Best, Don Bauder
dbauder Aug. 10, 8:19 a.m.
Response to post #5: The DOE has a long-running investigation of Bridgepoint. Results won't be fully known for awhile, although what has already come out is incriminating. Now Sen. Harkin's committee wants more. Something HAS to be done about the student loan crisis, which is billowing like the subprime crisis before it. Best, Don Bauder
dbauder Aug. 10, 8:46 a.m.
BRIDGEPOINT TAKES SIXTH BUILDING IN SAN DIEGO: Bridgepoint Education announced this morning (Aug. 10) that it will occupy a building at 5855 Copley Drive in Kearny Mesa -- the sixth building it will be using in San Diego. Among the others are the controversial Sunroad Spectrum building in Kearny Mesa. The company says it occupies 672,000 square feet of office space and employs 2,900 in San Diego. The stock continues under pressure: it is down 3.87% this morning to $14.40. Best, Don Bauder
SurfPuppy619 Aug. 10, 3:55 p.m.
Visduh, you are absolutely right. It is too bad the private sector can't run for-profit colleges in a respectable way. (I suppose some do, but examples are few and far between.)
Education, IMO, should never be "for profit", ever. There is just too much room for corruption and fraud.
I also think all higher education institutions taking DoE studnet loan money should be FORCED to carry a certain % of the debt on their books, say 25-30% of value-so they have skin in the game.
That applies to these so called "non profits" also, who are abusing the non profit status with huge salary, benefits and other perks.......
dbauder Aug. 10, 9:15 p.m.
Response to post #8: There is no question about it: bad judgment aplenty exists in the nonprofit education sector, too. Best, Don Bauder
jham88 Sept. 27, 7:30 p.m.
I absolutely agree with Surfpuppy619's post #8. What is going on with accreditation at Bridgepoint? Are they being dumped by the Midwestern accreditiation organization(I forgot the name or accronym)
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