Showing posts with label Martin Nesbitt. Show all posts
Showing posts with label Martin Nesbitt. Show all posts

Monday, September 26, 2016

Department of Education strips the Accrediting Council for Independent Colleges and Schools (ACIS) of its accrediting authority

DOE drops the hammer on ACICS

Last week, the U.S. Department of Education announced that it is stripping the Accrediting Council for Independent Colleges and Schools (ACICS) of its accrediting authority. As Donald Trump might put it, this is a HUUGE deal.

ACICS is the biggest accrediting body for the for-profit college industry. As of last June, ACICS accredited 245 schools enrolling about 800,000 students. All those schools must be credentialed by an accreditation agency approved by DOE in order to obtain federal student aid money. So when DOE decertified ACICS, it put more than 200 for-profit institutions at extreme risk of closing.

Why did DOE take such drastic action against ACICS?

Why did DOE take this drastic action? DOE accuses ACICS of lax oversight of the  for-profit college industry. Two large for-profits filed for bankruptcy recently--Corinthian Colleges and ITT Tech; both companies were accredited by ACICS. Other for-profits have been investigated for fraud, misrepresentation, and high-pressure recruiting tactics.

The industry as a whole has notoriously high student-loan default rates. According to a Brookings Institution report, almost half of a recent cohort of for-profit students defaulted on their student loans within five years of beginning repayment. Ben Miller, a senior spokesperson for the Center for American Progress, approved of DOE's action: "With its lengthy track record of shoddy oversight--that has led to billions of dollars squandered--ACICS had abused the public's trust and could not be allowed to continue granting access to federal dollars."

What will happen to the 200 plus colleges and schools that were accredited by ACICS?

What will happen to the 200 plus for-profit colleges that are no longer accredited by a DOE-approved accrediting body? Assuming ACICS loses its appeal of DOE's decision, which seems likely, for-profit colleges will have 18 months to obtain accreditation by another DOE-approved accreditor.  That will be very difficult to do--especially for small for--profit colleges,  As one West Virginia educator explained: "There aren't thousands of accreditors that schools can go to, there's really just a handful. They all have very specific niches to fill." And those accrediting bodies will likely be deluged with applications from colleges that were formerly accredited by ACICS.

In short, the fall of ACICS will inevitably have a domino effect on for-profit colleges. Those that don't quickly become re-accredited by a DOE-approved agency will lose access to federal student-aid money and will collapse. When the colleges collapse, their students' studies will be disrupted. The vast majority of all for-profit students took out federal student loans to finance their tuition. If their college closes, they will have just two choices:  They can transfer to another institution that will take their former college's credits or they can apply to DOE to have their loans  forgiven under DOE's"closed school" exemption process.

Does DOE have a sinister motive in disrupting the for-profit college industry?

The Obama administration will say its drastic action against ACICS is a justified response to the accreditor's shoddy oversight of the for-profit college industry. And maybe that explanation is sincere.

But why did DOE wait until the waning days of President Obama's second term in office to act? I wonder whether DOE might be intentionally disrupting the for-profit college industry so that inside players can step in and scoop up some faltering for-profit colleges in order to reap huge profits.

When Corinthian Colleges filed for bankruptcy last year, DOE engineered a deal for a subsidiary of Educational Credit Management Corporation to buy some of Corinthian's operations. ECMC's unit bought 56 of Corinthian's campuses for only $24 million. Who benefited financially from that deal?

And Apollo Education Group, owner of the University of Phoenix, is being bought out by a consortium of equity groups led by Martin Nesbitt, President Obama's former campaign manager and president of the Obama Foundation.  Tony Miller, a former Deputy Secretary of Education,  will run the University of Phoenix. Cozy!

Time will tell us what is going on here. The for--profit college industry is a sleazy business, and I have argued repeatedly that DOE should shut it down. DOE's decision last week to strip ACICS of its accrediting authority is a big step toward doing just that.

But if we see more political insiders come in and buy struggling for-profits as Martin Nesbitt is doing with the University of Phoenix, that may be an indication, that DOE's death sentence for ACICS is nothing more than a calculated play to drive down the value of for-profit colleges so that powerful financial interests can scoop them up.

One thing we know for sure: Bill and Hillary Clinton are very close to the for-profit college racket. Bill, we remember, got paid nearly $18 million to serve as "Honorary Chancellor" of Laureate Education Group; and Hillary is tight with Goldman Sachs, which has an ownership interest in a for-profit education company.

Image result for bill clinton and laureate education

References

Lauren Camera. Education Department Strips Authority of Largest For-Profit Accreditor. U.S. New & World Report, September 2, 2016. Accessible at http://www.usnews.com/news/articles/2016-09-22/education-department-strips-authority-of-acics-the-largest-for-profit-college-accreditor

Paul Fain. Federal panel votes to terminate ACICS and tightens screws on other accreditors. Inside Higher Ed, June 24, 2016. Accessible at https://www.insidehighered.com/news/2016/06/24/federal-panel-votes-terminate-acics-and-tightens-screws-other-accreditors

Jake Jarvis. In wake of ACIS decision, a crisis for WV's for profit schools. Charleston Gazette-Mail, September 25, 2016. Accessible at http://www.wvgazettemail.com/news-education/20160925/in-wake-of-acics-decision-a-crisis-for-wvs-for-profit-schools

Ronald Hansen. Apollo Education sale 'golden parachute' could be worth $22 million to executives. Arizona Republic, March 8, 2016. Accessible at http://www.azcentral.com/story/money/business/2016/03/08/apollo-education-sale-executives-payout-22-million/81483912/

Rosiland S. Helderman and Michelle Ye He Lee. Inside Bill Clinton's nearly $18 million job as 'honary chancellor' ofr a for-profit college. Washington Post, September 5,  2016. Accessible at https://www.washingtonpost.com/politics/inside-bill-clintons-nearly-18-million-job-as-honorary-chancellor-of-a-for-profit-college/2016/09/05/8496db42-655b-11e6-be4e-23fc4d4d12b4_story.html

Abby Jackson. An embattled for profit education company partly owned by Goldman Sachs keeps downsizing. Business Insider, June 13, 2016. Accessible at http://www.businessinsider.com/for-profit-brown-mackie-shutting-down-2016-6

Patria Cohen and Chad Bray. University of Phoenix Owner, Apollo Education Group, Will Be Taken Private. New York Times, February 8, 2016. Accessible at http://www.nytimes.com/2016/02/09/business/dealbook/apollo-education-group-university-of-phoenix-owner-to-be-taken-private.html

John Sandman. Debt Collector ECMC Closes Deal for Corninthian College Campuses. Mainstreet.com, February 9, 2015. Accessible at https://www.mainstreet.com/article/debt-collector-ecmc-closes-deal-for-corinthian-college-campuses

Soyong Kim. Apollo teams with Washington insider for education deal. Reuters, January 12, 2016. Accessible at http://www.reuters.com/article/us-apollo-education-m-a-apollo-global-idUSKCN0UQ23W20160112




Sunday, August 21, 2016

"Looters Will Be Shot"--Except for hedge fund managers, shoddy manufacturers, and owners of for-profit colleges

I passed by a low spot on Highway 16 a few days after the Great South Louisiana Flood of 2016, and I saw a house that had obviously been inundated with water.  Nailed to a tree in the front yard was a spray-painted sign: "Looters will be shot."

But of course, the sign isn't quite accurate. Some looters might get shot: the scumbags prowling flooded subdivisions looking for something to steal. It wouldn't bother me if someone nailed one of them with a Bushmaster assault rifle. That's what those rifles are for, after all.

But other looters are perfectly safe from any kind of vigilante justice.  Hedge fund managers, for example, get a special tax break for the ultra wealthy. President Obama--that hopie change guy--didn't bother to clean up that scam, which he easily could have done.

Other corporate looters run for-profit colleges. In fact, Martin Nesbitt, chairman of the Obama Foundation, is CEO of an equity fund that plans to get into the for-profit-college scam business.

In fact, the working people of America get looted all the time, whether or not they are victims of a natural disaster.  For example, I was pushing a wheelbarrow load of wet sheet rock to a trash pile yesterday, and the axle of the wheelbarrow broke. It couldn't handle the modest load that it was supposedly designed to carry.

A co-worker examined the damage and told me to throw the wheelbarrow on the trash pile along with the sheet rock, which I did. This was a new True Temper wheelbarrow! I'd say whoever bought that wheelbarrow was looted.

And today, I was reminded of another corporate looter. I took some time off from flood-damage cleanup to smoke a rack of ribs in my Cabala's electric smoker--which is a piece of shit. For one thing, Cabala didn't make the smoker; Masterbilt did. Cabala's just put its name on the thing to deceive buyers into thinking they were buying a quality product.

The thermometer on the smoker's lid (marked Masterbilt) registers temperatures up to 700 degrees, but I've never gotten the damn thing hotter than 250.  The plastic handle broke the first time I dropped the lid, and the little wooden side tray is busted. Do you think I was looted when I bought that piece of junk? You're damned right I was.

In fact, the Great South Louisiana Flood of 2016--Redneck Katrina--reminded me again and again of how much cheap crap the multinational corporate looters sell to working Americans. Thousands of tons of debris line the streets of Denham Springs, Louisiana--piles of worthless stuff. Microwave ovens, refrigerators, freezers, fake-wood furniture: all crap.

In fact, I don't think many flood victims mourn the loss of their chattel. They knew it was junk when they bought it. They know the Chinese are making more crap for us right now and that they can buy their new crap at the Denham Springs Walmart just as soon as it cleans up its own flood damage and reopens.

Even our homes are crap, sold to us by looters. The doors on new spec houses aren't made out of wood anymore; they're made from some kind of laminate. If the bottom six inches of one of these fake-wood doors is subjected to water for just 24 hours, the whole door is ruined. I know; I tossed out about 30 of them.

But at least you can save the hinges, you might think, and the door frames. But no--these cheap faux-wood doors are sold new with hinges and door frames already attached. When you throw your ruined door on the trash heap, you might as well toss in the hinges and the door frame.

So--to return to my main point--not all looters will be shot. So if you are a looter who wants to rip off your neighbor, don't steal his home generator. You might get your ear shot off.

No, do what Martin Nesbitt is doing; buy a for-profit college.

Image result for martin nesbitt and president obama


References

Blake Neff. America's Largest For-Profit College Sold to Group Led By Obama's Best Friend. Daily Caller, February 28, 2016. Available at http://dailycaller.com/2016/02/08/americas-largest-for-profit-college-sold-to-group-led-by-obamas-best-friend/

Gretchen Morgenson. Ending Tax Break For Ultrawealthy May Not Take Act of Congress. New York Times, May 6 2016. Available at http://www.nytimes.com/2016/05/08/business/ending-tax-break-for-ultrawealthy-may-not-take-act-of-congress.html?_r=0

Tuesday, May 24, 2016

University of Phoenix is eliminating mandatory arbitration clauses in its student agreements. Hmmm. When a for-profit does the right thing, it's probably in trouble

On May 19th, Apollo Education Group, which owns University of Phoenix, announced that it is eliminating mandatory arbitration clauses in its student contracts. This is good news and is in harmony with the Department of Education's desire to do away with arbitration clauses in for-profit universities' student agreements.

Arbitration clauses, as many commentators have noted, tend to favor corporate entities over individuals. Students who signed arbitration agreements can't sue the institution they attended in court even if they have a fraud claim. Arbitration clauses generally prohibit class action suits, which would be a useful way for a group of defrauded students to band together to get relief. And arbitration decisions are generally secret. Thus, even if a university loses an arbitration dispute with a student who was victimized, other injured students are unlikely to learn about it.

Please forgive my cynicism about the for-profit industry, but here's my first reaction. When a for-profit college does the right thing, it's probably in trouble. And University of Phoenix is in big trouble.

Enrollments are down by more than half from Phoenix's peak enrollments. Its stock price, once as high as $90 a share, is now selling for a little more than nine bucks. The key senior executives have negotiated a deal with three private equity groups to buy the Apollo Education Group and Phoenix, and all the big boys will get golden parachutes.

The key player in the buyout partnership is Martin Nesbitt, literally Barack Obama's best friend. And the guy in charge (if the deal goes through) will be Tony Miller, former Deputy Secretary of Education in the Obama administration.  Such a cozy arrangement.

So what the heck--why not eliminate mandatory arbitration clauses now, especially since that is what the Department of Education wants the for-profits to do.

But--as I've said before--DOE's push against mandatory arbitration clauses is tardy. President Obama has been in office seven and half years, and DOE is just now getting around to addressing this serious problem. And new rules will be going through a negotiated rulemaking process that the for-profit industry knows well. There is a very good chance that any new rule restricting mandatory arbitration clauses in student enrollment agreements will be watered down.

Nevertheless, Apollo Education Group's announcement is a good start, and higher-education reformers should take heart. Not that there are any higher-education reformers. Just you and me; that's just about everybody.

References

U.S. Department of Education. U.S. Department of Education Takes Further Steps to Protect Students from Predatory Higher Education Institutions. March 11, 2016. Accessible at http://www.ed.gov/news/press-releases/us-department-education-takes-further-steps-protect-students-predatory-higher-education-institutions?utm_content=&utm_medium=email&utm_name=&utm_source=govdelivery&utm_term=

News Release. Apollo Education Group to Eliminate Mandatory Arbitration Clauses. May 19, 2016.
Accessible at http://phx.corporate-ir.net/phoenix.zhtml?c=79624&p=irol-newsArticle&ID=2169809

Ronald Hansen. Apollo Education sale 'golden parachute' could be worth $22 million to executives. Arizona Republic, March 8, 2016. Accessible at http://www.azcentral.com/story/money/business/2016/03/08/apollo-education-sale-executives-payout-22-million/81483912/

Sarah Jones. Top Apollo Education Investor Urges Board to Resist Takeover. Bloomberg News, January 29, 2016. Accessible at http://www.bloomberg.com/news/articles/2016-01-29/top-apollo-education-investor-urges-board-to-resist-takeover

Patria Cohen and Chad Bray. University of Phoenix Owner, Apollo Education Group, Will Be Taken Private. New York Times, February 8, 2016. Accessible at http://www.nytimes.com/2016/02/09/business/dealbook/apollo-education-group-university-of-phoenix-owner-to-be-taken-private.html

Soyong Kim. Apollo teams with Washington insider for education deal. Reuters, January 12, 2016. Accessible at http://www.reuters.com/article/us-apollo-education-m-a-apollo-global-idUSKCN0UQ23W20160112

Dan Primack. Obama's 'best friend' raises millions for private equity fund. Fortune Magazine, August 11, 2014. Accessible at http://fortune.com/2014/08/11/obamas-best-friend-raises-millions-for-private-equity-fund/

Thursday, April 28, 2016

University of Phoenix to be sold to private equity groups: Insiders float away on golden parachutes

Earlier this year, Apollo Education Group, owner of University of Phoenix, announced that it was in negotiations with three private equity funds to sell out for a little more than $1 billion.

Vistria, one of the potential buyers, is run by Martin Nesbitt, widely described as President Obama's best friend.  And that label is probably not hyperbole. Nesbitt was Obama's campaign manager for both his 2008 and 2012 presidential campaigns, and Nesbitt now heads the Obama Foundation, which will oversee the construction of Obama's Presidential Library. Yes, Nesbitt may really be Obama's best friend.

Why is Apollo Education Group, a publicly traded company, selling out to three private equity groups? Perhaps because things aren't going well with the University of Phoenix, Apollo's principal asset.

In its heyday, UP enrolled almost half a million students and raked in more than a billion dollars a year in federal student aid money. UP's parent company was worth $16 billion, and its stock soared to $95 a share.

But times have changes. UP's enrollment has plummeted to less than 200,000, forcing it to close some campuses. In 2015, the Federal Trade Commission began investigating. Today the stock is trading at below $8 a share, and the company is worth less than 1/16 its peak value.

So the big boys decided  it was time to put some lipstick on their pig and sell it.  

And if the sale goes through, Apollo's insiders will do very well. According to a story appearing last month in the Arizona Republic, the sale would provide gold parachutes to several top executives:
  • Greg Cappelli, Apollo Education's CEO, would get $4.2 million in cash and $3.1 million in equity and other benefits.
  • Sean Martin, Apollo Education's General Counsel, would get $1.4 million in cash and $4.2 million in stock.
  • J. Mitchell Bowling, Chief Operating Officer, would get $1.5 million in cash and $1.8 million in stock.
  • Timothy Slottow, president of University of Phoenix, would get $2 million case and $717,000 in stock.
  • Gregory Iverson, Apollo Education's chief financial officer, would get almost a million in cash and $1.7 million in stock.
Not bad compensation for the guys who ran the University of Phoenix into the ground!

And who are the potential buyers? Three private equity groups are partnering to buy Apollo Education Group: Phoenix-based Najafi Companies; Apollo General Management (not affiliated with Apollo Education Group); and Chicago-based Vistria Group, founded and run by Obama's good friend, Martin Nesbitt. Tony Miller, who served as President Obama's Deputy Secretary of Education from 2009 to 2013, has been tapped to run the University of Phoenix operations.

But the deal may not go through. First of all, shareholders may not approve the sale. Schroders Global Recovery Fund, a British equity group, is Apollo Education's biggest shareholder. Schroders bought its stock when Apollo was worth about $3 billion, probably thinking Apollo's stock price would rise and it would make a killing.

Schroder doesn't want to sell to the private equity groups because it would suffer a huge loss.  The Schroders team said this: "We see the potential for multiple hundreds of percent of upside in Apollo’s stock from current levels over a period of years."  And Andrew Lyddon, Schroders' fund manager, said last January that Apollo Education has "had everything thrown at it, but we think it would be terrible for shareholders at this point if management were to capitulate.”

Earlier this week, the Apollo Education board issued a statement stating that a sale to the consortium "is in the best interests of shareholders" and indicated that it would explore the possibility of selling the University of Phoenix if the sale of Apollo Education doesn't go through. (Apparently, the board can sell the University of Phoenix without shareholder approval.)

I am not a "master of the universe" financial wizard. I can hardly balance my own checkbook. Nevertheless, I doubt whether this sale will ever be finalized. The opposition of the Schroders group may stop it--the folks would take a big haircut if Apollo Education sold out for only about $1 billion.

But apart from this challenge, I think there is a growing awareness that the for-profit college industry is ceasing to be a good investment for private equity groups. People made a killing in this racket a few years ago, but students are becoming more sophisticated than they once were and enrollments are dropping. Moreover, public universities now offer an array of online degree programs that once made the University of Phoenix distinctive; and the public universities usually offer online programs at much more affordable prices than the for-profits.

It would not surprise me if Martin Nesbit and his rich hedge-fund cronies decided to back out of their tentative deal to buy Apollo Education Group. And that would be a shame, because that would suck all the air out of a bunch of golden parachutes.

References

Ronald Hansen. Apollo Education sale 'golden parachute' could be worth $22 million to executives. Arizona Republic, March 8, 2016. Accessible at http://www.azcentral.com/story/money/business/2016/03/08/apollo-education-sale-executives-payout-22-million/81483912/

Sarah Jones. Top Apollo Education Investor Urges Board to Resist Takeover. Bloomberg News, January 29, 2016. Accessible at http://www.bloomberg.com/news/articles/2016-01-29/top-apollo-education-investor-urges-board-to-resist-takeover

Patria Cohen and Chad Bray. University of Phoenix Owner, Apollo Education Group, Will Be Taken Private. New York Times, February 8, 2016. Accessible at http://www.nytimes.com/2016/02/09/business/dealbook/apollo-education-group-university-of-phoenix-owner-to-be-taken-private.html

Soyong Kim. Apollo teams with Washington insider for education deal. Reuters, January 12, 2016. Accessible at http://www.reuters.com/article/us-apollo-education-m-a-apollo-global-idUSKCN0UQ23W20160112



 

Thursday, April 7, 2016

4.6 million student debtors are in long-term repayment plans, default rates are up, and President Obama's "best friend" is buying University of Phoenix: "Things fall apart; the centre cannot hold."

Things fall apart; the centre cannot hold;
 Mere anarchy is loosed upon the world,
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned;
The best lack all conviction, while the worst
Are full of passionate intensity.


The Second Coming
William Butler Yeats

As William Butler Yeats put it, "Things fall apart; the centre cannot hold." Everywhere, we see signs that the federal student-loan program is on the verge of collapse. And when the loan program collapses, so will American higher education.

Here are some portents of the coming disaster:

Student borrowers are enrolling in long-term repayment plans in record numbers

First, the U.S. Department of Education recently announced that 4.6 million student debtors are enrolled in Income-Driven Repayment plans (IDRs) to pay off their college loans. This is a 48 percent increase since December 2014 and a 140 percent increase since December 2013. 

People in IDRs are obligated to pay on their student loans for 20 or even 25 years, and most are making payments so small that that their loan balances are going up, not down, due to unpaid accumulating interest. In other words, most people in IDRs will never pay off their college loans.

Yet lenient income-based plans are President Obama's chief strategy for addressing the student-loan crisis. As the DOE blog put it,"President Obama has fought hard to make college more affordable and to help borrowers keep their student loan payments manageable." And thanks to those efforts, DOE continues, students in the new IDRs never have to pay more than 10 percent of their monthly income on your federal student loans."   Indeed, borrowers who are  "temporarily unemployed" don't have to pay anything. "After all, as DOE cheerily pointed out, "10 percent of zero dollars is zero dollars."

But of course, 20-year and 25-year repayment plans are crazy, especially when we consider that most people don't sign up for these plans until their backs are against the wall. Remember Brenda Butler, who entered a 25-year repayment plan 20 years after graduating from college? She won't be finished with her student loans until 2037, 42 years after acquiring her degree!

The Feds are garnishing wages and Social Security Checks; and default rates are rising

Meanwhile, the government garnished $176 million in wages from student-loan defaulters during the last three months of 2015. And the government garnishes Social Security checks of 155,000 elderly student-loan defaulters. 

And despite governmental assurances to the contrary, student-loan default rates are rising. According to a recent analysis by Jason Deslisle, 20 percent of all borrowers with loans due are in default. A Brookings Institution report noted that almost half of  a recent cohort of student borrowers who attended for-profit colleges defaulted within 5 years

And let's not forget the nine million people in the repayment phase of their loans who aren't making payments because they've obtained economic hardship deferments or some other deferment from making loan payments.  Those folks are counted as defaulters, but in reality, most of them will never pay back their loans. 

Law schools are in trouble

And then there are the law schools, some of which are in real trouble. Over the last few years, law schools began behaving like pirates, raising tuition rates to insane levels even as the market for lawyers imploded. Now they are seeing  a 20 percent decline in enrollment applications; and many have lowered their admission standards just to get warm bodies in their classrooms. A typical law student now graduates with $140,000 in debt; and many have almost no prospect of getting jobs in the legal field.

The for-profit college sector: The barbarian are at the gates

Finally, in the private sector, the barbarians are at the gates. Corinthian College, which had 350,000 students or former students as of last year, filed for bankruptcy; and thousands of its victims have filed claims to have their student loans forgiven. The Department of Education brokered a sale of some Corinthian campuses to a company affiliated with Educational Credit Management Corporation, the rapacious college-loan debt collector, just to maintain some semblance of order in the chaos of the Corinthian collapse.

Apollo Education Group, owner of the University of Phoenix, is in real trouble. Enrollments at UP dropped from a a peak of 475,000 in 2010 to less than half that number in 2015. Apollo's stock, which once sold for more than $80 a share, is now trading below 8 bucks.

Apollo is in negotiations to sell out to a group of private equity firms, including Visteria Group. Visteria was founded by Martin Nesbitt, described as President Obama's "best friend." In fact, Nesbitt was treasurer for both of Obama presidential campaigns; and he heads the Obama Foundation that is planning the Obama Presidential Library. 

If the deal goes through, Tony Miller, former Deputy Secretary of Education in the Obama administration and Martin Nesbitt's business partner, will become Apollo Education Group's new Board Chairman.  Very cozy!

"The ceremony of innocence is drowned."

To borrow a phrase from Yeats, "The ceremony of innocence is drowned" in American higher education.  Colleges and universities were once honored as the guardians of our civilization's ideals, the places where young people came to grow and learn, and to develop the civic and moral values that are indispensable to maintaining a healthy and vibrant society.

No more.  Arrogant college presidents, greedy profiteers, and mindless bureaucrats now control our once beloved universities. The best of these characters "lack all conviction, while the worst are full of passionate intensity." 

All of this craziness is paid for by federal student-loan money. And millions of college-loan borrowers are strangling in debt they can never pay off. This cannot go on forever.

President Obama and Martin Nesbitt



Anthony W. Miller official portrait.jpg
Tony Miller, former Deputy Secretary of Education
and soon-to-be Board Chairman of Apollo Education Group
References

Jillian Berman. Americans just had $17 million in wages garnished by the government due to unpaid student loans. Marketwatch.com, March 22, 2016. Accessible at http://www.marketwatch.com/story/the-government-just-garnished-176-million-in-wages-because-of-unpaid-student-loans-2016-03-21

Ronald J. Hansen. Apollo Education, parent company of University of Phoenix, to go prvate at $1.1 billion deal. Arizona Republic, February 9, 2016. Accessible at http://www.azcentral.com/story/money/business/2016/02/08/apollo-education-to-go-private-in-11b-deal/79998782/

Jason Delisle. @usedgov latest data out today shows student loan defaults just hit another record high, 20% of those w/ loans due. Mhttps://twitter.com/delislealleges/status/710539989256429568

Matt Sessa. Student Aid Posts Updated Reports to FSA Data Center. Department of Education, March 17, 2016. Accessible at https://www.nasfaa.org/news-item/7943/3-17_Federal_Student_Aid_Posts_Updated_Reports_to_FSA_Data_Center

Dan Primack. Obama's 'best friend' raises millions for private equity fund. Fortune Magazine, August 11, 2014. Accessible at http://fortune.com/2014/08/11/obamas-best-friend-raises-millions-for-private-equity-fund/

Patricia Cohen and Chad Bray. University of Phoenix Owner, Apollo Education Group, To Be Taken Private. New York Times, February 9, 2016. Accessible at http://www.nytimes.com/2016/02/09/business/dealbook/apollo-education-group-university-of-phoenix-owner-to-be-taken-private.html?

No, You Won't Be Arrested for Falling Behind On Your Student Loans. US. Department of Eduation Official Bog, April, 2016. Accessible at http://blog.ed.gov/2016/04/no-you-wont-be-arrested-for-falling-behind-on-your-student-loans/