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    The Trump administration’s plan to cut billions of dollars in research spending by eliminating indirect cost reimbursements would devastate university science, especially at public institutions, experts warned. [This is an article from The Chronicle of Higher Education, America’s leading higher education publication. It is presented here under an agreement with University World News.] The US secretary for health and human services, Tom Price, told Congress this week that the idea is to save taxpayers money while giving them the same amount of research activity. Indirect cost payments are funds spent on "something other than the research that’s being done," Dr Price told a House of Representatives subcommittee on health appropriations on Wednesday. But university representatives made clear on Thursday that it simply does not work that way. Indirect costs reflect the legitimate expenses of providing scientists with labs and complying with a host of essential services that somehow will still need to be paid, the representatives said. Under current law, a researcher who receives a federal grant to conduct research cannot simply be billed by his or her university for those costs, said Tobin L Smith, vice president for policy at the Association of American Universities, which represents major research institutions. And universities absolutely won't force students to cover the difference, Smith said. "The reality is we don't have other revenue sources to pay for those things, because let's face it, we are not going to rob tuition to pay for those costs," he said. "It just is not going to happen." It's not clear what universities would do if Congress actually accepted the administration's proposal to end indirect cost payments, said David Kennedy, director of costing policy and studies at the Council on Governmental Relations, another association of research universities and affiliated medical centres. State institutions probably would suffer first and hardest, Kennedy said, because they would have virtually no ab
    7 years ago by @prophe
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    Arizona Summit Law school, a troubled for-profit institution owned by the InfiLaw System, has been placed on probation by its accrediting body, the American Bar Association. The association’s move was announced on Monday and followed Arizona Summit’s affiliation with Bethune-Cookman University, a nonprofit historically black college in Daytona Beach, Fla. Arizona Summit Law in Phoenix is the second school owned by InfiLaw to be placed on probation for failing to meet A.B.A. accreditation standards. Sterling Partners, a private equity firm in Chicago and Baltimore, is an investor. The first, Charlotte School of Law in Charlotte, N.C., lost its eligibility for federal student aid in January as a result of the probation. Its enrollment has declined sharply, and the school has said it is trying to restart federal aid and is exploring affiliation with a nonprofit college in a Northeastern state. At Arizona Summit, the bar association found that admissions practices, academic programs, and graduation and bar exam passage rates were below par. These deficiencies, according to a statement by the A.B.A. Section of Legal Education and Admissions to the Bar, “have resulted in the law school now being in a position where only immediate and substantial action can bring about a sufficient change to put the law school on a realistic path to being in compliance within the time allowed” by the bar association’s rules. Only 24.6 percent of Arizona Summit graduates who took the Arizona state bar exam for the first time in July 2016 passed, an exceptionally low rate. Charlotte School of Law reported nearly the same passage rate for its graduates who took the North Carolina bar exam last month. The bar association said that because the situation at Arizona Summit was critical and urgent, it could have hearings this year to consider any additional remedial action or sanctions “up to and including withdrawal of the law school’s approval.” The probation decision was made by the bar association’s Council of the Section of Legal E
    7 years ago by @prophe
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    Remember when candidate Trump promised to make college affordable for everyone? Yeah, that’s not happening.  Instead, Trump is turning to the notorious corporateers who have been pouring McDiplomas on the nation’s steaming trillion-dollar student debt pyre to shake up higher education. Education Secretary Betsy DeVos’s controversial pick for a special assistant—for-profit college corporate lawyer Robert Eitel, may be a portent. As counsel for Bridgepoint, the parent company of the now-tainted brands of Ashford University and University of the Rockies, was forced by the Obama administration last year to refund $24 million in tuition and debt costs to students, plus civil damages, after the Consumer Financial Protection Bureau found that its heavy marketing scheme for its online programs, and “deceived its students into taking out loans that cost more than advertised.” Bridgepoint is just one player in a sector of for-profit institutions that are known for exploiting millions in federal loans and grants, providing substandard academics and granting worthless diplomas. While many companies were reined in by regulators under Obama, the industry as a whole has survived, and is now poised for revival under Trump. In fact, even those companies penalized for defrauding students have not been held fully accountable over federal student debts; Bridgepoint’s sanction, for example, did not encompass federal loans, even though graduates are typically chained to about $33,000 in taxpayer-subsidized debt. But the for-profit college companies hobbled by financial crisis under Obama might see a major resurrection under Trump’s and DeVos’s deregulatory agenda. One tactic may be for belly-up for-profits to reinvent themselves as nonprofits, in order to skirt future regulations and wriggle out of liability for financial abuses. The Corinthian college chain, for example, following bankruptcy, was placed under the control of a nominal “nonprofit” called Zenith (which was later exposed for having compromising financial entangle
    7 years ago by @prophe
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    Ratings agency dings small university for spending big after a new president took over. As focus shifts to a budget deficit, question becomes whether Drew can cut spending while growing enrollment. MaryAnn Baenninger inherited a budget deficit when she came to Drew University in the summer of 2014. The next year, the small private university’s deficit grew. And that was by choice. Drew spent more as Baenninger sought to put money into the university’s campus, students and employees. The university issued its first raises in about five years. It hired a respected enrollment guru and increased its financial aid spending. It renovated the dining hall. The spending was a change for Drew, a pricey university to the west of New York City in Madison, N.J., which had been preparing for budget cuts following several years of dropping enrollment before Baenninger arrived. But, according to Baenninger and members of her administration, the spending helped to keep talented staff and faculty members from leaving, improve student retention and increase applications from prospective students. “We were losing kids on the food, for God’s sake,” Baenninger said. “Our salaries were going downhill. Now they’re going up.” Recently, however, the spotlight has shifted to Drew’s deteriorating financial situation. Moody’s Investors Service drove home that point this month by downgrading Drew’s bonds for the second time in 15 months. Moody’s dropped one series of bonds from Ba3 to B2 and two others from Ba3 to B3, sinking them farther into junk territory and signifying that they are highly speculative. Moody’s pointed to operating deficits that are expected to last longer than previously projected, along with a competitive student market constraining possibilities for short-term revenue growth. It said Drew has no more unrestricted liquidity left and would have to rely on loans and distributions from temporarily restricted endowment assets for working capital. Moody’s also assigned a negative rating outlook. “The negative outlook reflect
    7 years ago by @prophe
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    The Bihar Legislative Council today passed seven bills including the Bihar Private University (Amendment) Bill, 2017 which paved way for running private universities from rented premises in the state. State Education minister Ashok Choudhary introduced the bill proposing to allow private universities to function from rented premises with a built up area of 5,000 sqm up to two years till construction of permanent infrastructure. Countering BJP member Vinod Narayan Jha's assertion that not a single university has shown interest in opening its campus in Bihar, Choudhary said the state government has received 14 proposals for setting up universities. Out of them, the government has set up a committee to look into the Detailed Project Report of 12 proposals. Three universities would start running their courses soon and the government has decided to allow such universities to run their academic activities from rented accommodation for two years if they fulfil all requisite criteria, he said. "Our aim is to increase the Gross Enrolment Ratio (GER) in universities. So, we opened the door for private institutions. At present, the state's GER is 13.9 per cent against the national average of 24 per cent. The government intends to push that up to 30 per cent by 2020," he said. State Parliamentary Affairs minister Shrawan Kumar introduced the Bihar State Legislature (Members' salaries, allowances and pension) (amendment) Bill, 2017 which was passed by the legislative Assembly yesterday. An amendment has been proposed in the preamble of the State Legislature (Members' salaries, allowances and pension) (Amendment) Act to incorporate provision of pension for retired members of the bicameral state legislature. The House passed Bihar Farmers and Rural Areas Development Agency (Repeal) Bill, 2017, the Patna University (Amendment) Bill, 2017, the Bihar State University (Amendment) Bill, 2017 and the Bihar Appropriation Excess Expenditure Bill, 2017. The Legislative Council also passed the Bihar Protection of Interest of Dep
    7 years ago by @prophe
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