[ad_1]
The Obama administration has formally decided to end the monitoring of a controversial for-profit college, thanks to a ruling made Wednesday by state secretary for education, Betsy DeVos.
DeVos reinstated the federal recognition of the Independent Colleges and Schools Accreditation Council (ACICS) on Wednesday, ending two years of limbo for the organization, which began after the Obama administration withdrew its recognition from ACICS in March. 2016. ACICS and other accredited colleges require federal recognition in order to function.
College accreditors such as ACICS serve as custodians for billions of dollars in federal financial assistance to colleges, especially those in the for-profit sector.
Although apparently innocuous, this decision could impact millions of students and the future of the for-profit college sector. College accreditors like ACICS serve as guardians of billions of dollars in federal financial assistance to colleges.
Without accreditation approval, colleges can not access this money, which is critical to the financial stability of many colleges, especially those in the for-profit sector.
In the months leading up to Wednesday's decision, advocates for borrowers expressed concern that allowing ACICS to re-supervise colleges could put students at risk. ACICS has maintained the accreditation of Corinthian Colleges, a for-profit chain, which collapsed in 2015 due to allegations that the school would have used placement and graduation rates inflated to attract students until their disappearance.
In the three years to 2016, 17 colleges investigated and supervised by ACICS received $ 5.7 billion in federal financial assistance, according to the Center for American Progress, a group of reflection on the left.
"This decision compromises accreditation as a reliable authority," said Antoinette Flores, associate director of post-secondary studies at CAP. "It's telling other agencies that there are no consequences for making bad decisions over and over again."
Wednesday's decision by DeVos comes after years of legal battles over the future of ACICS. The Accreditor sued to block the decision to end his recognition. In this case, the court concluded that Obama officials failed to consider the evidence presented by ACICS and ordered the department to reevaluate the case.
A department staff report released earlier this year – well beyond the two-year reform period – consistently found more than 50 ACICS operating management issues.
At that time, DeVos decided to temporarily reinstate the accreditation of the accreditor. This last decision officially restores the Department's recognition.
DeVos' decision was based on "a thorough review of previously neglected documents", as well as the 77-page recommendation of a senior agency official, Liz Hill, a spokeswoman for the department, wrote in a statement sent by email.
As part of Wednesday's decision, DeVos is asking ACICS to submit reports within 12 months proving its compliance with the two recognition criteria it currently does not meet: a provision that requires accreditors to use competent representatives and another requiring that accreditors protect themselves from conflict. d & # 39; interests.
DeVos also asks ACICS to submit annual reports on investment audit and other categories.
Michelle Edwards, President of ACICS, welcomed DeVos' decision in a statement, stating that the accreditors had always maintained that ACICS met the federal recognition criteria.
"In the past two years, ACICS has implemented significant reforms designed to address concerns and strengthen our ability to hold schools accountable for meaningful student achievement," she said.
However, a department staff report released earlier this year – well beyond the two-year reform period – consistently found more than 50 organizational operating problems.
Given her experience in accreditation of struggling for-profit colleges, Flores expressed concern that reinstating accreditation would allow schools to operate with limited accountability. "This sends the message to the predator colleges that they can continue to get away with bad actions," she said of the decision.
Get a daily summary of key personal finance readings in your inbox. Subscribe to MarketWatch's free newsletter, Personal Finance Daily. Register here.
Source link