http://searchengineland.com/an-seo-playbook-for-2012-103906
Search Engine Optimization is growing up. I am not ready to say the Wild West SEO days are completely eradicated, but in 2011 good search engine optimization is less about trickery and more about engaging content and audience development than ever before.
Over the years, quality optimizers have become more prone to avoid technical tricks like using CSS image replacement to inject keyword text or controlling the flow of PageRank by hiding links from search engines.
Search engines keep getting better at crawling and indexing. If you are unwilling to burn your website or risk your career, you follow the search engines’ terms of service.
During 2011 the conservative attitude toward code crossed chasm to apply to content. For years, websites churned-out poorly written, generic articles in the name of long-tail keyword optimization. It worked so well some people turned crappy content into startups.
Now, thanks to Panda, Google’s site-wide penalty for having too much low quality content, people are asking why anyone would put pages on a website that no one wants to read, share or link to? Without taking potshots at the past, most of those articles look juvenile and antiquated.
Made in Japan went from signifying cheap to marvelous. Made for the Web is growing-up too. It is this evolution which guides my SEO highlights for 2012. I separate things to keep in mind by code, design and content.
Code – Keep It Simple
While Google likes to tell us they are very good at crawling and understanding imperfect code, I prefer to assume search engines are dumb and help them every way I can. Simple code is honest code. It’s also easy to parse and analyze. Just because you can AJAX-up a page with accordions and fly-outs does not mean you should. The more code on a page, the more things that can go wrong from spider access to browser compatibility.
Follow standards and get as close to validated markup as reasonably possible. Make it easy for search engines to spider your site. Validating HTML and CSS does not automagically raise your rankings, but it will prevent crawl errors.
At the same time, don’t insist on validation since some perfectly good code will never validate. Follow search engine recommendations to Make AJAX, XML and Other Code Crawl able.
Make your CSS class and ID names obvious, especially for section div tags. Again, Google tells us they have gotten good at identifying headers, sidebars and footers. Part of that is almost assuredly knowing the most common div names.
Make it easy on Google and Bing by naming your header div header.
Name the CSS ID of your right sidebar div right-sidebar.
Why would you name a CSS Class xbr_001 when you can name it navigation? At the very least, it will make life a lot easier on your SEO team. They have enough work without the need to translate ambiguous naming structures.
Reserve h# tags for outlining principal content. I am amazed at the number of big brand websites that still use h# tags for font design. Tell your designers that h1, h2, h3, h4, h5 and h6 are off-limits and reserved for content writers and editors.
The only exception to this should be if your content management system uses h1 tags to create a proper headline. Embargo h# tags out of your headers, navigation, sidebars and footers too. They don’t belong there.
Web Design – Less Navigation Is More
Look at the Zen like efficiency of any Apple product. Steve Jobs was ruthless about eliminating the unnecessary and achieving clean Bauhaus efficiency.
By contrast, too many websites, especially enterprise sites, try to be all things to all people. Their administrators or managers fear they might miss out on a conversion for lack of a link.
Websites should have clean vertical internal linking. Every page should not link to every page. You do not need a site-wide menu three levels deep. As long as people feel that they are progressing toward their goal or the useful information they seek, they will click on two, three or four links to get there.
Look at your website analytics. Which pages receive the fewest visits? Are any in your navigation? If no one uses a link, why does it to be there?
A website’s most widely visited pages tend to be close to the homepage. Review your categories and sub-categories. Can you eliminate whole categories by merging or reassigning content? For example, does the management team need its own category or can you move it into the About section?
This is not just about eliminating distraction. It is a way to increase the internal flow of authority (PageRank, link juice, etc.) to SEO hub pages.
Content – Engagement & Agility
Emphasize Community and Conversation. If your business depends on the Internet and you have the budget to hire one more person, consider employing a community evangelist. High rankings require authority. Authority comes from off-site links and, to an extent, brand mentions.
Earning enough links to make a dent in your SEO requires a continuous stream of link worthy content combined with forging and fostering relationships with people who create links or influence lots of others through online conversation. This requires a large commitment of time to work with writers and designers and to network. Even when decentralized, this rarely works without a strong empowered leader.
Get out of the sales funnel. The people you want to buy your products or services are not going to blog about your company or mention it on Twitter. More likely, they are peers.
A good exercise to undertake is ask each employee, if they could pick one professional conference to attend, what would it be? Then look for the session speakers on Twitter, LinkedIn and Facebook. Find which ones are active online and gauge their influence. Are people in your company qualified to write authoritatively about these topics or speak at conferences?
This is how to find content topics for the post-Panda Web, things people want to converse about and link to. For example, if you have a cutting-edge API team, an API development blog could be the key to higher domain authority.
Understand Social Technographics. It will help you to find influencers and create content that people will want to link to and talk about.
Embrace Agility
Realign your content generation and approval process so you can create near-daily web content and, if necessary, respond publically to something within an hour.
With Query Deserves Freshness, trending topics, news search and simply because of how social media conversations come and go, agility is important for getting noticed and getting links.
Update Your Content
If your website has older articles that read like Wikipedia or a hardcover World Book Encyclopedia, swap out old content for new. In the future, Panda will not get leaner, it will get meaner. If you have reason to worry, start fixing it now. Do not wait and hope Panda will not see your low quality content. I want to be very clear here:
If you have decent quality content that provides real value, keep it whether it is SEO optimized or not. Yes, get to work optimizing older content doing things like selecting hub pages, optimizing text and cross-linking. But do not delete your old content.
If you have content that seems overtly advertorial, is cheesy or reads robotic because it is so stuffed with keywords, begin the process of writing one-for-one replacements and update your old content over time. For the old-time SEOs out there, this brings new meaning to a page a day.
If you have been hit by Panda already, I suggest removing your poor quality content, set-up 301 redirects to salvage the link authority, then begin rebuilding with high quality, link worthy content. Panda is a site-wide penalty. It is not going to go away until the offending content is removed or replaced.
Those are my 2012 SEO playbook highlights. In the past, content creation and link building were too separated. We had writers covering every long-tail key phrase possible while, in another room, link ninjas emailed and telephoned soliciting for individual links.
That model is becoming less and less sustainable. The Web is too big. Too many people contribute content. Social media offers an entirely new world of context. Today, SEO means finding an audience you can connect with, become a part of the community, give them insanely awesome content and reciprocate. This is the new SEO arms race.
Opinions expressed in the article are those of the guest author and not necessarily Search Engine Land.
Related Entries
SEOnomics: A New Way Of Thinking About SEO For Business
Employing Microformats & Structured Data For Enhanced Search Engine Visibility
From Garbage To Gourmet: Fixing SEO Content Strategies
Schema.org: Google, Bing & Yahoo Unite To Make Search Listings Richer Through Structured Data
Friday, December 9, 2011
Thursday, December 8, 2011
Private equity still strong, despite market challenges
Despite widespread pessimism over the global economic outlook, almost a quarter of private equity investors believe private equity has become more attractive in light of recent volatility in financial markets.
A further 64 per cent of investors do not view private equity any differently as a result of the current financial climate and 14 per cent find it less attractive, Preqin research has found.
Many investors feel that private equity has become increasingly attractive as public markets have become more volatile, with some identifying opportunities in times of economic distress and others planning to look to emerging markets for new investments.
More than three-quarters, 76 per cent, of a sample of 300 investors interviewed in October and November 2011 plan to make new fund commitments over the coming 12 months, while 92 per cent expect to maintain or increase their allocations over the longer term, further illustrating their confidence in the asset class. Just 8% intend to decrease their exposure to private equity over the next three to five years.
Emma Dineen, manager – private equity investor data, said, “The global financial crisis undoubtedly prompted many LPs to re-evaluate their private equity strategies. Many have become more cautious and selective when choosing fund managers to invest with. However, despite recent volatility in the wider financial markets, investors generally remain positive about the private equity asset class, and many believe that there are good investment opportunities ahead.
“While investor appetite is there, the crowded fundraising market means that investors are well positioned to be selective about the funds they choose to commit to, so the challenge remains for fund managers to market their funds in the best possible way and to ensure that they target the right investors if they are to enjoy success in this competitive market,” she added.
http://www.altassets.net/knowledge-bank/leading-edge/private-equity-still-strong-despite-market-challenges.html
A further 64 per cent of investors do not view private equity any differently as a result of the current financial climate and 14 per cent find it less attractive, Preqin research has found.
Many investors feel that private equity has become increasingly attractive as public markets have become more volatile, with some identifying opportunities in times of economic distress and others planning to look to emerging markets for new investments.
More than three-quarters, 76 per cent, of a sample of 300 investors interviewed in October and November 2011 plan to make new fund commitments over the coming 12 months, while 92 per cent expect to maintain or increase their allocations over the longer term, further illustrating their confidence in the asset class. Just 8% intend to decrease their exposure to private equity over the next three to five years.
Emma Dineen, manager – private equity investor data, said, “The global financial crisis undoubtedly prompted many LPs to re-evaluate their private equity strategies. Many have become more cautious and selective when choosing fund managers to invest with. However, despite recent volatility in the wider financial markets, investors generally remain positive about the private equity asset class, and many believe that there are good investment opportunities ahead.
“While investor appetite is there, the crowded fundraising market means that investors are well positioned to be selective about the funds they choose to commit to, so the challenge remains for fund managers to market their funds in the best possible way and to ensure that they target the right investors if they are to enjoy success in this competitive market,” she added.
http://www.altassets.net/knowledge-bank/leading-edge/private-equity-still-strong-despite-market-challenges.html
Wednesday, October 12, 2011
Slow (to No) Hiring Activity Expected for October 2011
Slow (to No) Hiring Activity Expected for October 2011
10/6/2011 By Theresa Minton-Eversole
Though this is the time of year that U.S. employers begin shoring up their staffs for the holiday shopping season, job growth is not expected to rebound much in October 2011, according to the Society for Human Resource Management’s (SHRM) Leading Indicators of National Employment (LINE) survey for October 2011.
Hiring expectations are anemic in October 2011, with the rate of job creation expected to be virtually unchanged from that of October 2010 in manufacturing. Job creation is expected to fall moderately in services in October 2011, compared with October 2010.
“HR professionals are reporting that hiring is basically at a standstill for October [2011],” said Jennifer Schramm, GPHR, SHRM’s manager of workplace trends and forecasting. “Manufacturing firms are adding jobs at the same rate as at this time last year, while private service-sector firms are reporting a small downturn in hiring compared to October [2010].”
The LINE report examines four key areas: employers’ hiring expectations, job vacancies, difficulty in recruiting top-level talent and new-hire compensation. It is based on a monthly survey of private-sector human resource professionals at more than 500 manufacturing and 500 service-sector companies. Employment Expectations Manufacturing Service.
In October 2011, hiring activity will rise slightly in manufacturing and will drop moderately in services compared with October 2010.
+1.1
-10.4
Recruiting Difficulty
In September 2011, the index for recruiting difficulty rose slightly in both sectors compared with September 2010.
+4.9
+4.6
New-Hire Compensation
The rate of increase for new-hire compensation in September 2011 rose in both sectors compared with September 2010.
+6.7
+2.9
Source: SHRM Leading Indicators of National Employment (LINE), www.shrm.org/line
Employment Expectations
The manufacturing hiring index will rise in October 2011 on a year-over-year basis by a net of just 1.1 points (a net of 30.4 percent of companies will hire in October 2011, compared with a net of 29.3 percent that added jobs in October 2010). Service-sector hiring, however, will decrease in October 2011 by a net of 10.4 points (a net of 29.0 percent will add jobs, compared with a net of 39.4 percent that added jobs in October 2010), according to LINE data.
The LINE results for October 2011 reflect a trend of subpar growth in job creation, in accord with recent federal data. Nonfarm payrolls were unchanged in August 2011, according to the U.S. Bureau of Labor Statistics (BLS), and the manufacturing sector, which has been one of the economy’s strongest performers for job growth, lost a net of 3,000 jobs during the month.
Exempt, Nonexempt Position Vacancies
LINE data cover exempt vacancies, which are primarily salaried positions, and nonexempt vacancies, which are mostly hourly employees. Changes in the number of job vacancies can be one of the earliest indicators of a shift in the balance between labor supply and demand.
In the manufacturing sector, a net total of 10.4 percent of respondents reported increases in exempt vacancies in September 2011, which represents a 3.0-point decrease from September 2010. A net total of 11.2 percent of manufacturing respondents reported that nonexempt vacancies increased in September 2011, representing a net 0.1-point decrease from September 2010. There were 257,000 job openings in manufacturing in July 2011, up slightly from June 2011, according to the BLS.
Service-sector job creation is expected to be even less impressive. In its annual holiday hiring forecast, global outplacement consultancy Challenger, Gray & Christmas, Inc., predicted in September 2011 that seasonal job gains in the retail sector would be about the same or possibly lower than in September 2010.
“The retail environment has improved significantly since 2008, when the recession was at its worst,” said John A. Challenger, CEO of Challenger, Gray & Christmas. “However, retailers are seeing several signs that consumer spending is dipping just as they are beginning to make decisions about how many workers to add for the upcoming holidays. It would be surprising if holiday hiring exceeded last year’s level.”
Even if retailers foresee strong sales, it might not result in increased hiring, according to Challenger. A survey of major U.S. retailers by management consultants at the Hay Group found that 68 percent expect sales to be higher than in 2010. Yet the same percentage plans to hire the same number of seasonal workers as were hired in 2010. About one-fourth of respondents said they plan to reduce the number of seasonal hires.
The dismal forecast is reflected in the most recent LINE data, too. In the service sector, a net total of 7.4 percent of respondents reported increases in exempt vacancies in September 2011—a 2.5-point increase from September 2010. For nonexempt service positions, a net total of 18.0 percent of respondents reported increased vacancies in September 2011, marking a 3.5-point increase from September 2010.
Recruiting Difficulty
“Even with subdued hiring rates and elevated unemployment, once again we are seeing the recruiting difficulty index rise in both sectors,” said Schramm. “This suggests that employers are having difficulty connecting with job seekers who possess the skills they are looking for.”
For example, a net of 9.7 percent of manufacturing respondents had more difficulty with recruiting in September 2011—a net increase of 4.9 points from September 2010 and the highest net of recruiting difficulty for the month of September in four years.
A net of 11.6 percent of service-sector HR professionals had more difficulty recruiting in September 2011—an increase of 4.6 points from September 2010 and also the highest net in four years. The recruiting difficulty data suggest that the labor market is suffering from structural issues along with decreased demand.
Considering that millions of people are seeking work and cannot obtain employment in their industries, the rise in recruiting difficulty might be attributed to new or enhanced skill requirements for new high-level jobs, noted Schramm. “With the exception of March 2011, recruiting difficulty has risen on an annual basis in both sectors for every month since December 2009,” she noted.
New-Hire Compensation
During the recession, a high rate of unemployment and a large pool of job seekers in the market gave many companies the option of holding down the wages and benefits they offered new hires in the effort to control costs. New-hire compensation is now beginning to rise, albeit only slightly.
In the manufacturing sector, a net total of 8.7 percent of respondents reported increasing new-hire compensation in September 2011—an increase of 6.7 points from September 2010. In the service sector, a net total of 7.9 percent of companies increased new-hire compensation in September 2011, representing a 2.9-point increase from a year ago. With the exception of September 2010, the rate of new-hire compensation has risen in small increments on an annual basis in both sectors for every month since February 2010.
“Skills shortages may be why we are seeing some increases in the new-hire compensation indices,” said Schramm. “For the 12th consecutive month, the rate of increase for wages and benefits rose on an annual basis in both sectors. This does not mean that everyone is seeing their wages increase; overall most employers are keeping new-hire compensation flat. But the percentage reporting increases continues to rise incrementally, indicating that the need to find talent is pushing some employers to boost their starting wages and compensation.”
Theresa Minton-Eversole is an online editor/manager for SHRM.
10/6/2011 By Theresa Minton-Eversole
Though this is the time of year that U.S. employers begin shoring up their staffs for the holiday shopping season, job growth is not expected to rebound much in October 2011, according to the Society for Human Resource Management’s (SHRM) Leading Indicators of National Employment (LINE) survey for October 2011.
Hiring expectations are anemic in October 2011, with the rate of job creation expected to be virtually unchanged from that of October 2010 in manufacturing. Job creation is expected to fall moderately in services in October 2011, compared with October 2010.
“HR professionals are reporting that hiring is basically at a standstill for October [2011],” said Jennifer Schramm, GPHR, SHRM’s manager of workplace trends and forecasting. “Manufacturing firms are adding jobs at the same rate as at this time last year, while private service-sector firms are reporting a small downturn in hiring compared to October [2010].”
The LINE report examines four key areas: employers’ hiring expectations, job vacancies, difficulty in recruiting top-level talent and new-hire compensation. It is based on a monthly survey of private-sector human resource professionals at more than 500 manufacturing and 500 service-sector companies. Employment Expectations Manufacturing Service.
In October 2011, hiring activity will rise slightly in manufacturing and will drop moderately in services compared with October 2010.
+1.1
-10.4
Recruiting Difficulty
In September 2011, the index for recruiting difficulty rose slightly in both sectors compared with September 2010.
+4.9
+4.6
New-Hire Compensation
The rate of increase for new-hire compensation in September 2011 rose in both sectors compared with September 2010.
+6.7
+2.9
Source: SHRM Leading Indicators of National Employment (LINE), www.shrm.org/line
Employment Expectations
The manufacturing hiring index will rise in October 2011 on a year-over-year basis by a net of just 1.1 points (a net of 30.4 percent of companies will hire in October 2011, compared with a net of 29.3 percent that added jobs in October 2010). Service-sector hiring, however, will decrease in October 2011 by a net of 10.4 points (a net of 29.0 percent will add jobs, compared with a net of 39.4 percent that added jobs in October 2010), according to LINE data.
The LINE results for October 2011 reflect a trend of subpar growth in job creation, in accord with recent federal data. Nonfarm payrolls were unchanged in August 2011, according to the U.S. Bureau of Labor Statistics (BLS), and the manufacturing sector, which has been one of the economy’s strongest performers for job growth, lost a net of 3,000 jobs during the month.
Exempt, Nonexempt Position Vacancies
LINE data cover exempt vacancies, which are primarily salaried positions, and nonexempt vacancies, which are mostly hourly employees. Changes in the number of job vacancies can be one of the earliest indicators of a shift in the balance between labor supply and demand.
In the manufacturing sector, a net total of 10.4 percent of respondents reported increases in exempt vacancies in September 2011, which represents a 3.0-point decrease from September 2010. A net total of 11.2 percent of manufacturing respondents reported that nonexempt vacancies increased in September 2011, representing a net 0.1-point decrease from September 2010. There were 257,000 job openings in manufacturing in July 2011, up slightly from June 2011, according to the BLS.
Service-sector job creation is expected to be even less impressive. In its annual holiday hiring forecast, global outplacement consultancy Challenger, Gray & Christmas, Inc., predicted in September 2011 that seasonal job gains in the retail sector would be about the same or possibly lower than in September 2010.
“The retail environment has improved significantly since 2008, when the recession was at its worst,” said John A. Challenger, CEO of Challenger, Gray & Christmas. “However, retailers are seeing several signs that consumer spending is dipping just as they are beginning to make decisions about how many workers to add for the upcoming holidays. It would be surprising if holiday hiring exceeded last year’s level.”
Even if retailers foresee strong sales, it might not result in increased hiring, according to Challenger. A survey of major U.S. retailers by management consultants at the Hay Group found that 68 percent expect sales to be higher than in 2010. Yet the same percentage plans to hire the same number of seasonal workers as were hired in 2010. About one-fourth of respondents said they plan to reduce the number of seasonal hires.
The dismal forecast is reflected in the most recent LINE data, too. In the service sector, a net total of 7.4 percent of respondents reported increases in exempt vacancies in September 2011—a 2.5-point increase from September 2010. For nonexempt service positions, a net total of 18.0 percent of respondents reported increased vacancies in September 2011, marking a 3.5-point increase from September 2010.
Recruiting Difficulty
“Even with subdued hiring rates and elevated unemployment, once again we are seeing the recruiting difficulty index rise in both sectors,” said Schramm. “This suggests that employers are having difficulty connecting with job seekers who possess the skills they are looking for.”
For example, a net of 9.7 percent of manufacturing respondents had more difficulty with recruiting in September 2011—a net increase of 4.9 points from September 2010 and the highest net of recruiting difficulty for the month of September in four years.
A net of 11.6 percent of service-sector HR professionals had more difficulty recruiting in September 2011—an increase of 4.6 points from September 2010 and also the highest net in four years. The recruiting difficulty data suggest that the labor market is suffering from structural issues along with decreased demand.
Considering that millions of people are seeking work and cannot obtain employment in their industries, the rise in recruiting difficulty might be attributed to new or enhanced skill requirements for new high-level jobs, noted Schramm. “With the exception of March 2011, recruiting difficulty has risen on an annual basis in both sectors for every month since December 2009,” she noted.
New-Hire Compensation
During the recession, a high rate of unemployment and a large pool of job seekers in the market gave many companies the option of holding down the wages and benefits they offered new hires in the effort to control costs. New-hire compensation is now beginning to rise, albeit only slightly.
In the manufacturing sector, a net total of 8.7 percent of respondents reported increasing new-hire compensation in September 2011—an increase of 6.7 points from September 2010. In the service sector, a net total of 7.9 percent of companies increased new-hire compensation in September 2011, representing a 2.9-point increase from a year ago. With the exception of September 2010, the rate of new-hire compensation has risen in small increments on an annual basis in both sectors for every month since February 2010.
“Skills shortages may be why we are seeing some increases in the new-hire compensation indices,” said Schramm. “For the 12th consecutive month, the rate of increase for wages and benefits rose on an annual basis in both sectors. This does not mean that everyone is seeing their wages increase; overall most employers are keeping new-hire compensation flat. But the percentage reporting increases continues to rise incrementally, indicating that the need to find talent is pushing some employers to boost their starting wages and compensation.”
Theresa Minton-Eversole is an online editor/manager for SHRM.
Wednesday, August 17, 2011
For-Profit College Lobbying Group Sues Obama Administration Over Regulations
More than a month after the Obama administration issued weaker-than-expected regulations aimed at reining in abuses at some for-profit colleges, a trade association for the industry filed a lawsuit on Wednesday seeking to strike down the new rules governing excessive student debt.
The lawsuit is a perplexing move for the for-profit college industry, which aggressively fought the Obama administration’s crackdown for more than a year, and ultimately succeeded in getting final regulations last month that were universally regarded as being substantially weakened from those proposed a year earlier.
The market has signaled that investors approved of the measures: Since the Obama administration issued the “gainful employment” regulations in early June, the stocks at many publicly traded for-profit college companies have soared. Executives at for-profit college corporations, including University of Phoenix founder John G. Sperling, have cashed in on the rise by selling millions of dollars worth of stocks since the rules were issued.
Yet despite the apparent victory by the industry’s multi-million dollar lobbying and campaign finance efforts over the past year, the lawsuit from the Association of Private Sector Colleges and Universities calls out the Obama administration’s Department of Education for writing “fatally flawed” regulations that will result in “massive disincentives on private sector schools that currently seek to educate low-income, minority, and other traditionally underserved student populations.”
A spokesman for the association said he was unable to comment on why the lawsuit was filed despite the positive reception of the regulations from the stock market.
Department of Education spokesman Justin Hamilton said in a statement, “Our regulations offer students and taxpayers the protection they deserve. These student safeguards rest on a sound legal foundation.”
Critics of the industry said they were surprised that the trade group would come out swinging after the markets signaled a total victory.
"I’m kind of taken aback by this total rejectionist position," said Barmak Nassirian, associate executive director of the American Association of Collegiate Registrars and Admissions Officers, who has followed regulations on for-profit higher education for years. “They’ve decided that total war is the way to go.”
The lawsuit argues the administration does not have the authority to move forward with the “gainful employment” regulations, which test programs at for-profit colleges and other vocational schools based on the percentage of students who are able to repay student loans and the amount of overall student loan debt compared to students’ income.
“This lawsuit is necessary in order to protect 3.8 million students who attend private sector colleges and universities today and those who will attend our schools in the future,” Brian Moran, the group’s interim president and chief executive, said in a statement.
Supporters of stricter accountability for for-profit colleges -- which have taken in a disproportionate amount of federal student aid dollars over the past decade and contribute to nearly half of all federal student loan defaults -- see the issue of protecting students in a different light.
The “gainful employment” measures were conceived by the administration as both an accountability test for the federal student loan program and as a consumer protection measure for students who are often reeled in by aggressive recruiting tactics. Under the administration’s original proposal last summer, programs could immediately lose access to lucrative federal student aid dollars that fuel the bulk of profits if too many students had unsustainable debts.
After a relentless lobbying and public relations campaign by the industry, programs were given an additional three years to come into compliance with the rules. Instead of potentially losing access to federal student loan and Pell grant dollars after failing debt tests for one year, programs must now fail tests three out of four years in order to be deemed ineligible.
The Association of Private Sector Colleges and Universities has filed litigation against most of the major regulations imposed on their industry since the beginning of the Obama administration. A federal judge ruled earlier this month on a lawsuit by the group that disputed additional regulations on the for-profit higher education industry: rules meant to hold schools accountable for recruiters who make misleading statements to prospective students, and rules meant to crack down on bonuses and raises given to recruiters based on the number of students enrolled.
The judge ruled in favor of the Department of Education on those rules, but found fault with an administration rule that required schools to get separate state authorizations for students attending online.
The industry group has appealed the judge’s decision on the misrepresentation and student recruitment rules
http://www.huffingtonpost.com/2011/07/20/for-profit-college-lobbyi_n_905176.html
For-profit colleges respond to increased scrutiny
ST. LOUIS (AP) — They gather in a generic suburban office park, working-class students chasing a fast track to success: a college degree.
But the message at the University of Phoenix orientation is not quite what these secretaries, mental health aides, working moms and single dads expect.
"We want you to decide if this is right for you," says Sam Fitzgerald, director of academic affairs at the school's four St. Louis campuses. "We're here to help you figure it out."
That candor would have been anathema not too long ago in the lucrative world of for-profit colleges, where recruiters received hefty bonuses and often oversold career prospects.
Yet these are new times for the industry that now accommodates one in every eight American college students, either in class or online. Lawmakers in Congress are probing its excesses, from high loan default rates to reports of exploitative sales pitches to wounded veterans.
The Obama administration in June unveiled new rules that could cut off government aid for programs where too few students repay their loans or acquire decent-paying jobs. Disenchantment — and lawsuits — continue among both former students and skittish investors.
"They have a huge bulls-eye on them," said Kevin Kinser, an associate professor at the State University of New York at Albany who studies the industry. "They can't risk business as usual anymore."
The for-profit industry, which prefers the term "career colleges" or "proprietary" schools, grew rapidly over the last decade amid renewed calls to increase the nation's college graduation rate and a need to help laid-off workers find new careers. The private sector's slice of federal aid money grew from $4.6 billion to more than $26 billion between 2000 and 2010.
Now, the industry will see if it can still make healthy profits from its challenging demographic __ low income workers, older students and those with spotty academic backgrounds— while being much more accountable for its results.
The changes are most apparent at the University of Phoenix and its corporate parent, Apollo Group Inc., which, with nearly 400,000 students, ranks atop the industry.
The school has created its own social network, PhoenixConnect, to better link its far-flung students as well as 600,000 alumni who could help those students and graduates find jobs. It boasts of new alumni association chapters, hundreds of student clubs and mentorship programs.
The three-week orientation program is now required of all prospective students with fewer than 24 college credits. The program is free, but those who don't pass can't continue. The company scrapped its financial incentive program for enrollment counselors and there's less reliance on outside sales companies to generate leads, and more emphasis on finding corporate partners willing to help pay for their employees' education.
The results have been dramatic. New student enrollment has declined by nearly half, and the company reported $159 million less in net revenue after the first three quarters of fiscal year 2011 compared to the previous year.
Officials expect further enrollment declines and more short-term financial pain but insist the approach will pay off with fewer dropouts, higher graduation rates and lower federal loan default rates.
"We have made a conscious decision to make sure the students coming through the door are more likely to be successful," said Mark Brenner, senior vice president for external affairs.
Change is also afoot at Kaplan University, which is owned by The Washington Post Co. and serves about 62,000 students. Another 50,000 students study at Kaplan Higher Education career colleges, which focus more on specific trades.
Stung by a series of whistleblower lawsuits by former employees and a Florida attorney general's investigation, Kaplan created a program that allows new students to attend classes for four or five weeks at no cost before deciding whether to continue. Kaplan also stopped paying incentives to recruiters.
The company reported a 48 percent decline in new enrollments as of April and an attrition rate of 25 percent. Of the latter group, 60 percent are dismissed by Kaplan for lack of academic progress.
The for-profit industry's staunchest defenders include Donald Graham, chief executive officer of The Washington Post Co.
"If we are to be guided only by those factors — student graduation rates and how much debt they incur — we would probably close down all, or almost all, of the institutions of higher education — whomever they may be run by — that serve poor students," Graham said at the company's annual meeting in May.
A committee led by Sen. Tom Harkin, D-Iowa, has held multiple hearings on for-profit colleges over the past year — most recently in early July, after the Obama administration issued its new "gainful employment" rules. Those rules require schools to meet at least one of three conditions to continue receiving Pell Grants and other federal paid-tuition: a loan repayment rate by former students of least 35 percent; annual loan payments of no more than 30 percent of an average student's discretionary income; or annual loan payments that don't exceed 12 percent of a typical graduate's salary.
Regulators say those conditions are needed to ensure that for-profit graduates won't face crippling debts, which combined with low-paying jobs could lead to more loan defaults.
The Senate committee found an average dropout rate of 57 percent within two years of enrollment at 16 unnamed for-profit schools. More than 95 percent of students at two-year proprietary schools, and 93 percent at four-year schools, took out student loans in 2007, the committee found. That compares to fewer than 17 percent of community college students and 44.3 percent of students at four-year public schools. Students at for-profit schools also account for nearly half of all student loan defaults, the committee found.
"Some for-profit schools are efficient government subsidy collectors first and educational institutions second," the committee concluded in its report.
In contrast to most nonprofit colleges, proprietary colleges have emphasized expanding their student rolls, regardless of the academic prospects of those enrolled.
"State institutions might like to grow, but they can't afford to. Elite schools define themselves by the fact they don't grow," said industry analyst Trace Urdan, the managing director of Signal Hill Capital Group. "This is a place where growth is the essence of the institution."
Harkin, the industry's most vocal critic, recently compared the high default rates to the subprime mortgage loan meltdown. He remains skeptical that the sector has mended its ways.
"For-profit education must work for students, not shareholders," he said.
Eric Schmitt, 36, earned an associate's degree from Kaplan University's campus in Cedar Falls, Iowa, and then a bachelor's degree from its online school three years ago The aspiring paralegal said he has been unable to find a job in the field. He owes nearly $45,000 in student loans and is working a temporary warehouse job to help support his wife and two children.
Schmitt, who testified before Harkin's committee in June, called the Kaplan Commitment and other industry initiatives "a step in the right direction" but said the gap between education costs and real job prospects could mean "you're going to keep seeing students thrown under the bus."
In a statement issued by Kaplan after Schmitt's testimony, the company said he turned down a paralegal job it helped him line up.
The conversations in Washington and Wall Street mean little to Carl Tabb, a 36-year-old father of 10 who hopes to earn a bachelor's degree in information technology from the University of Phoenix while continuing to work full-time for the Missouri Department of Mental Health and moonlighting repairing home computers.
"I really was not the best student when I was in school," he said. "I always thought I wouldn't make it to college."
Fitzgerald, a former Price Waterhouse consultant, said nontraditional students such as Tabb deserve just a chance to earn a degree and a shot at better future.
"Yeah, we're a for-profit. But that doesn't mean we're in it for the wrong reasons," she said. "We want to set up our students for success."
___
Alan Scher Zagier can be reached on Twitter at http://twitter.com/azagier
But the message at the University of Phoenix orientation is not quite what these secretaries, mental health aides, working moms and single dads expect.
"We want you to decide if this is right for you," says Sam Fitzgerald, director of academic affairs at the school's four St. Louis campuses. "We're here to help you figure it out."
That candor would have been anathema not too long ago in the lucrative world of for-profit colleges, where recruiters received hefty bonuses and often oversold career prospects.
Yet these are new times for the industry that now accommodates one in every eight American college students, either in class or online. Lawmakers in Congress are probing its excesses, from high loan default rates to reports of exploitative sales pitches to wounded veterans.
The Obama administration in June unveiled new rules that could cut off government aid for programs where too few students repay their loans or acquire decent-paying jobs. Disenchantment — and lawsuits — continue among both former students and skittish investors.
"They have a huge bulls-eye on them," said Kevin Kinser, an associate professor at the State University of New York at Albany who studies the industry. "They can't risk business as usual anymore."
The for-profit industry, which prefers the term "career colleges" or "proprietary" schools, grew rapidly over the last decade amid renewed calls to increase the nation's college graduation rate and a need to help laid-off workers find new careers. The private sector's slice of federal aid money grew from $4.6 billion to more than $26 billion between 2000 and 2010.
Now, the industry will see if it can still make healthy profits from its challenging demographic __ low income workers, older students and those with spotty academic backgrounds— while being much more accountable for its results.
The changes are most apparent at the University of Phoenix and its corporate parent, Apollo Group Inc., which, with nearly 400,000 students, ranks atop the industry.
The school has created its own social network, PhoenixConnect, to better link its far-flung students as well as 600,000 alumni who could help those students and graduates find jobs. It boasts of new alumni association chapters, hundreds of student clubs and mentorship programs.
The three-week orientation program is now required of all prospective students with fewer than 24 college credits. The program is free, but those who don't pass can't continue. The company scrapped its financial incentive program for enrollment counselors and there's less reliance on outside sales companies to generate leads, and more emphasis on finding corporate partners willing to help pay for their employees' education.
The results have been dramatic. New student enrollment has declined by nearly half, and the company reported $159 million less in net revenue after the first three quarters of fiscal year 2011 compared to the previous year.
Officials expect further enrollment declines and more short-term financial pain but insist the approach will pay off with fewer dropouts, higher graduation rates and lower federal loan default rates.
"We have made a conscious decision to make sure the students coming through the door are more likely to be successful," said Mark Brenner, senior vice president for external affairs.
Change is also afoot at Kaplan University, which is owned by The Washington Post Co. and serves about 62,000 students. Another 50,000 students study at Kaplan Higher Education career colleges, which focus more on specific trades.
Stung by a series of whistleblower lawsuits by former employees and a Florida attorney general's investigation, Kaplan created a program that allows new students to attend classes for four or five weeks at no cost before deciding whether to continue. Kaplan also stopped paying incentives to recruiters.
The company reported a 48 percent decline in new enrollments as of April and an attrition rate of 25 percent. Of the latter group, 60 percent are dismissed by Kaplan for lack of academic progress.
The for-profit industry's staunchest defenders include Donald Graham, chief executive officer of The Washington Post Co.
"If we are to be guided only by those factors — student graduation rates and how much debt they incur — we would probably close down all, or almost all, of the institutions of higher education — whomever they may be run by — that serve poor students," Graham said at the company's annual meeting in May.
A committee led by Sen. Tom Harkin, D-Iowa, has held multiple hearings on for-profit colleges over the past year — most recently in early July, after the Obama administration issued its new "gainful employment" rules. Those rules require schools to meet at least one of three conditions to continue receiving Pell Grants and other federal paid-tuition: a loan repayment rate by former students of least 35 percent; annual loan payments of no more than 30 percent of an average student's discretionary income; or annual loan payments that don't exceed 12 percent of a typical graduate's salary.
Regulators say those conditions are needed to ensure that for-profit graduates won't face crippling debts, which combined with low-paying jobs could lead to more loan defaults.
The Senate committee found an average dropout rate of 57 percent within two years of enrollment at 16 unnamed for-profit schools. More than 95 percent of students at two-year proprietary schools, and 93 percent at four-year schools, took out student loans in 2007, the committee found. That compares to fewer than 17 percent of community college students and 44.3 percent of students at four-year public schools. Students at for-profit schools also account for nearly half of all student loan defaults, the committee found.
"Some for-profit schools are efficient government subsidy collectors first and educational institutions second," the committee concluded in its report.
In contrast to most nonprofit colleges, proprietary colleges have emphasized expanding their student rolls, regardless of the academic prospects of those enrolled.
"State institutions might like to grow, but they can't afford to. Elite schools define themselves by the fact they don't grow," said industry analyst Trace Urdan, the managing director of Signal Hill Capital Group. "This is a place where growth is the essence of the institution."
Harkin, the industry's most vocal critic, recently compared the high default rates to the subprime mortgage loan meltdown. He remains skeptical that the sector has mended its ways.
"For-profit education must work for students, not shareholders," he said.
Eric Schmitt, 36, earned an associate's degree from Kaplan University's campus in Cedar Falls, Iowa, and then a bachelor's degree from its online school three years ago The aspiring paralegal said he has been unable to find a job in the field. He owes nearly $45,000 in student loans and is working a temporary warehouse job to help support his wife and two children.
Schmitt, who testified before Harkin's committee in June, called the Kaplan Commitment and other industry initiatives "a step in the right direction" but said the gap between education costs and real job prospects could mean "you're going to keep seeing students thrown under the bus."
In a statement issued by Kaplan after Schmitt's testimony, the company said he turned down a paralegal job it helped him line up.
The conversations in Washington and Wall Street mean little to Carl Tabb, a 36-year-old father of 10 who hopes to earn a bachelor's degree in information technology from the University of Phoenix while continuing to work full-time for the Missouri Department of Mental Health and moonlighting repairing home computers.
"I really was not the best student when I was in school," he said. "I always thought I wouldn't make it to college."
Fitzgerald, a former Price Waterhouse consultant, said nontraditional students such as Tabb deserve just a chance to earn a degree and a shot at better future.
"Yeah, we're a for-profit. But that doesn't mean we're in it for the wrong reasons," she said. "We want to set up our students for success."
___
Alan Scher Zagier can be reached on Twitter at http://twitter.com/azagier
Tuesday, July 19, 2011
Questions on Legislator on Board of For-Profit University
http://www.insidehighered.com/news/2011/07/18/qt
Connecticut State Representative Selim Noujaim, a Republican, was a key player in amending a bill in June so that some state scholarship funds that would have been restricted to students at public and private nonprofit institutions would also be available to those at for-profit institutions. The Hartford Courant reported that Noujaim is a trustee of Post University, for which the for-profit institution pays him $4,500 a year. Connecticut law bars public officials from taking any action that creates a "direct monetary gain" to a business with which the official is associated. Noujaim said he would have recused himself if the bill helped only Post, but said that there was no need to do so since it helped other for-profit institutions. He also said he was not involved in Post for the money, telling the Courant that "I'm in it for the kids."
Connecticut State Representative Selim Noujaim, a Republican, was a key player in amending a bill in June so that some state scholarship funds that would have been restricted to students at public and private nonprofit institutions would also be available to those at for-profit institutions. The Hartford Courant reported that Noujaim is a trustee of Post University, for which the for-profit institution pays him $4,500 a year. Connecticut law bars public officials from taking any action that creates a "direct monetary gain" to a business with which the official is associated. Noujaim said he would have recused himself if the bill helped only Post, but said that there was no need to do so since it helped other for-profit institutions. He also said he was not involved in Post for the money, telling the Courant that "I'm in it for the kids."
Swedish Schools Are Benefiting From For-Profit Schools
The folks at Cato Institute have re-published a column written by one of their scholars on the benefits his country are seeing from for-profit schools
From a new piece at the Cato Institute’s website, Cato.org:
The central problem facing education systems around the world has not been a lack of excellent schools; it has been our inability to routinely replicate them. If you build a smarter cell phone or design a safer car, your sales increase, your company grows, and you spawn countless imitators. But education is different. If you find a better way to teach children, your innovations seldom reach beyond a single neighborhood.
These words were written by Andrew Coulson, the director of the Cato Institute’s Center for Educational Freedom in Washington D.C. Coulson also authored the book Market Education: The Unknown History. His article on the for-profit school industry in Sweden originally appeared the Swedish newspaper Svenska Dagbladet. Coulson recounts how over the past two decades, Sweden and the United States have tried to address that problem in very different ways. Those very different ways have yielded, not surprisingly, very different results. In the United States, philanthropists have donated hundreds of millions of dollars to replicate what they consider to be the best charter schools. Sweden’s free schools system, by contrast, has allowed both for-profit and non-profit private schools to compete for the privilege of serving students.
To find out how well the U.S. approach is working, I recently studied the academic performance of California’s charter school networks (groups of two or more schools with the same management or teaching methods). I discovered that there is essentially no correlation between the performance of these networks and the amount of philanthropic funding they have received. That means philanthropists are indiscriminately replicating the bad and the mediocre networks as well as the good ones. On average, charter schools perform at about the same level as traditional government schools.
The Swedish private school experience is not uniform. While for-profit schools are growing substantially over time, bringing their higher quality services to more and more families every year, non-profit schools have experienced relatively little growth.
From a new piece at the Cato Institute’s website, Cato.org:
The central problem facing education systems around the world has not been a lack of excellent schools; it has been our inability to routinely replicate them. If you build a smarter cell phone or design a safer car, your sales increase, your company grows, and you spawn countless imitators. But education is different. If you find a better way to teach children, your innovations seldom reach beyond a single neighborhood.
These words were written by Andrew Coulson, the director of the Cato Institute’s Center for Educational Freedom in Washington D.C. Coulson also authored the book Market Education: The Unknown History. His article on the for-profit school industry in Sweden originally appeared the Swedish newspaper Svenska Dagbladet. Coulson recounts how over the past two decades, Sweden and the United States have tried to address that problem in very different ways. Those very different ways have yielded, not surprisingly, very different results. In the United States, philanthropists have donated hundreds of millions of dollars to replicate what they consider to be the best charter schools. Sweden’s free schools system, by contrast, has allowed both for-profit and non-profit private schools to compete for the privilege of serving students.
To find out how well the U.S. approach is working, I recently studied the academic performance of California’s charter school networks (groups of two or more schools with the same management or teaching methods). I discovered that there is essentially no correlation between the performance of these networks and the amount of philanthropic funding they have received. That means philanthropists are indiscriminately replicating the bad and the mediocre networks as well as the good ones. On average, charter schools perform at about the same level as traditional government schools.
The Swedish private school experience is not uniform. While for-profit schools are growing substantially over time, bringing their higher quality services to more and more families every year, non-profit schools have experienced relatively little growth.
New Oriental's fiscal 4Q profit more than doubles
By The Associated Press
updated 7/18/2011 6:37:54 PM ET
http://www.msnbc.msn.com/id/43801651/ns/business-personal_finance
New Oriental Education & Technology Group Inc. said Monday that its fiscal fourth-quarter profit more than doubled as it signed up more students for its language training and test prep courses.
The company, which is based in Beijing and provides private educational services, reported net income climbed to $14.3 million, or 37 cents per American depositary share, in the three months ended May 31.
That compares with net income of $5.8 million, or 15 cents per American depositary share, in the same period last year.
Excluding the impact of a $1.5 million loss related to the disposal of two subsidiaries during the quarter, New Oriental would have earned 49 cents per American depositary share, the company said.
Analysts were anticipating earnings of 26 cents per American depositary share, according to FactSet.
Quarterly revenue surged 59 percent to $137.4 million, up from $86.6 million in the prior-year quarter. Analysts were anticipating revenue of $119.7 million.
The company said enrollment during the fourth quarter grew 11.9 percent from a year earlier to 489,100.
For the full fiscal year, the company earned $101.8 million, or $2.61 per American depositary share, compared with net income of $77.9 million, or $2.01 per American depositary share, in fiscal 2010.
Revenue grew 44 percent to $557.9 million, up from $386.3 million in the prior fiscal year.
New Oriental said it expects that fiscal first-quarter revenue will range from $255.8 million to $265.4 million, representing year-over-year growth in the range of 33 percent to 38 percent. Analysts expect revenue of $255.4 million.
Advertise | AdChoices
Meanwhile, the company said that, starting Aug. 18, it will adjust the ratio of its American depositary shares representing common shares from one ADS to four common shares, to one ADS for one common share.
New Oriental ADS holders as of the close of business on Aug. 17 will receive three additional ADSs for each ADS then held, the company said.
The effect of this ratio change on the ADS price is expected to take place on Aug. 19.
The ratio change will have the same effect as a four-for-one stock split, the company said.
Shares rose 74 cents to $120.60 in aftermarket trading after ending the regular session down $3.16, or 2.6 percent, to $119.86.
updated 7/18/2011 6:37:54 PM ET
http://www.msnbc.msn.com/id/43801651/ns/business-personal_finance
New Oriental Education & Technology Group Inc. said Monday that its fiscal fourth-quarter profit more than doubled as it signed up more students for its language training and test prep courses.
The company, which is based in Beijing and provides private educational services, reported net income climbed to $14.3 million, or 37 cents per American depositary share, in the three months ended May 31.
That compares with net income of $5.8 million, or 15 cents per American depositary share, in the same period last year.
Excluding the impact of a $1.5 million loss related to the disposal of two subsidiaries during the quarter, New Oriental would have earned 49 cents per American depositary share, the company said.
Analysts were anticipating earnings of 26 cents per American depositary share, according to FactSet.
Quarterly revenue surged 59 percent to $137.4 million, up from $86.6 million in the prior-year quarter. Analysts were anticipating revenue of $119.7 million.
The company said enrollment during the fourth quarter grew 11.9 percent from a year earlier to 489,100.
For the full fiscal year, the company earned $101.8 million, or $2.61 per American depositary share, compared with net income of $77.9 million, or $2.01 per American depositary share, in fiscal 2010.
Revenue grew 44 percent to $557.9 million, up from $386.3 million in the prior fiscal year.
New Oriental said it expects that fiscal first-quarter revenue will range from $255.8 million to $265.4 million, representing year-over-year growth in the range of 33 percent to 38 percent. Analysts expect revenue of $255.4 million.
Advertise | AdChoices
Meanwhile, the company said that, starting Aug. 18, it will adjust the ratio of its American depositary shares representing common shares from one ADS to four common shares, to one ADS for one common share.
New Oriental ADS holders as of the close of business on Aug. 17 will receive three additional ADSs for each ADS then held, the company said.
The effect of this ratio change on the ADS price is expected to take place on Aug. 19.
The ratio change will have the same effect as a four-for-one stock split, the company said.
Shares rose 74 cents to $120.60 in aftermarket trading after ending the regular session down $3.16, or 2.6 percent, to $119.86.
Wednesday, June 15, 2011
Hire Hopes
Hire Hopes
Jun 14th 2011, 16:13 by The Economist
Which countries are most optimistic about hiring?
THE outlook for employment in the third quarter of this year is positive in 35 of the 39 countries and territories covered by Manpower, an employment-services firm. The net balance of employers expecting to increase the size of their workforces in the next three months is highest in India and Brazil, at 47 and 37 percentage points respectively. In Italy and Spain employers have been mostly negative about job prospects since early 2008, and their outlook is getting gloomier. By contrast, German and Canadian companies have seen a quick recovery, and report their most positive hiring intentions since the downturn. Even with the opening of its borders to the European Union’s eastern workers in May, Germany's unemployment has been falling sharply. The central bank recently referred to its “extremely favourable labour market developments”.
shaun39 wrote:
What a depressing outlook - especially for Spain, with unemployment already touching on 21%.
Spain has open access to the whole of the EU market, has excellent assets and a well educated/ skilled workforce.
Why can't businesses employ Spain's labor and capital assets? Why do Spaniards not seek employment in Germany, the Netherlands, Austria or Sweden?
Depressed domestic demand doesn't explain the magnitude of Spanish unemployment.
While a combination factors are clearly in play, something is obviously in direct competition with employment: generous welfare payments, subsidized but badly located housing (whether through government or with parents, etc) and black market activity.
Possible solutions: cut benefits to a level significantly below an average starting salary. End all subsidies tied to specific accommodation. Cut all benefit payments to anybody living with (non-disabled) parents.
Do the above: people will move to parts of the EU with better employment prospects; people will leave their parents' homes to seek employment in parts of Spain with better employment prospects; people will accept lower paying jobs as an alternative to idleness.
Spain could go even further: it could replace all benefits (other than health, pensions and disability) with a right to 40 hours of work a week (at 4 euros/ hour).
Other required measures: deregulate employment contracts; cut corporate taxes and local business taxes; get tough on organized crime (it would help if consumption and supply of drugs were entirely legalized; the income tax system were simplified; and there were better use of modern information systems for tracking personal and business transactions).
The deficit would disappear; unemployment would collapse; exports would soar; standards of living would fall (in the short term); business investment would recover; productivity would resume an upwards trend (after the initial hit from incorporating less skilled workers); standards of living would resume an upwards trajectory.
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Samkaie wrote: Jun 14th 2011 6:32 GMT
@Calm Incence,
Just out of curiosity,what was your major? And where are you from?
I hope you wouldn't find this personal.
Recommend (17)PermalinkReport abuse
Ed (Brazil) wrote: Jun 14th 2011 7:49 GMT
All countries in this chart can survave going bellow zero for some time, except one: China.
They don't let us, nor their people, to see it on TV, but protests are there... China is a gun powder barrel whose owner has to keep on moving away from the fire that get closer everyday.
Italy and Spain, don't you think the only way you will go back in black is to stop the easy short term solutions and leave the Euro ?
"The Economist", where is Brazil ? I bet Brazil is between Canada gemany and China. If its above, its a buble...
Britain, you are Japan tomorrow. Actuallly, old, earthquake tsunami hit Japan generated much more jobs than you !
India, you are the only hope the World has for the decade that is beggining. Chinese don't play fair with their currency, so the world will face them sometime in the near future. But in order to do that, the world needs to find a replacement. You are the one. Hope you accept the invitation. Otherwise, we might get ready for a period of constant financial turmoil...
"The age of leverage". It will end with unimaginable defaults (not now), some ex-rich countries (Argentina is the worst of examples - in 1900 they had the world's 5th GDP per person). US is no longer the Rome of economics, and the question is, will it be able to sustain its position as the Rome of military ?
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Escha wrote: Jun 14th 2011 8:07 GMT
Apart from Brazil's data another important information is missing: The evolution of the workforce is quite different: shrinking populations in Japan and Germany make it increasingly difficult to hire enough skilled workers, i.e. engineers. However, immigration - as suggested by shaun39 - is not an easy solution, not least because of language difficulties. Have you ever tried to learn German (not to mention Japanese) to a level required by employers? In contrast growing populations in India, China and the US require much greater job growth.
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vmoriz wrote: Jun 14th 2011 10:00 GMT
@shaun39 I liked your macro review, and liked the proposals you made. I'm open to move to countries like Germany, Sweden or Austria. The question is, apart from all the good forecasts those countries report about labour market, are there companies really interested in hiring spaniards? At least from my experience it is not so easy, with the skills and seniority I'm looking for.
Feel free to connect via linkedIn:
http://linkd.in/connect2vfernandez
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russelbertrand wrote: Jun 14th 2011 10:00 GMT
Escha wrote "In contrast growing populations in India, China and the US require much greater job growth."
US is shrinking not growing i.e. baby boomers and greatest generation. Also, China has to many old people and to few young workers problem caused by mandatory 1 child laws. Which it seems most US families now practice.
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An Drew wrote: Jun 14th 2011 10:12 GMT
Britain's Confidence Fairy seems to be doing pretty well.
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Murilo Assis wrote: Jun 14th 2011 10:19 GMT
In Brazil there is a sharp shortage of engineers, technicians, researchers in the following areas: bulding, petrochemical, IT.
I strongly suggest those people that are unenployed in Europe/USA to have closer look in Brazil.
I am brazilian and according to some news I have lately read in newspapers and TV, some projects have been delayed due to lack of people with skills on the a.m. fields.
Due to Olimpic Games, World Cup, Pre-salt layer, the booming areas are as follow: Petrol (pre-salt layer), Buldings (house, dam, airports, ports, ethanol mills, agricultural research, transport and so on...)
For further information Google companies like: PETROBRÁS, EMBRAER, Norberto Odebrecht, EMBRAPA, CAMARGO CORREA, COSAN, COPERSUCAR (all World Class companies).
Needless to say it is necessary you guys know to communicate in portuguese or at least spanish as second language.
Good Luck you!
Murilo Assis
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Steve Thompson wrote: Jun 14th 2011 10:23 GMT
It's interesting to see that the prospects in for employment in the United States are on a very modest uptrend. That said, it is also interesting to note that the wages paid for many jobs in America have not grown in real terms for decades. Here's an article that shows how little incomes have risen in real terms in America over the past 30 years:
http://viableopposition.blogspot.com/2011/02/working-in-america-once-aga...
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Cloudwarrior wrote: Jun 14th 2011 10:25 GMT
I sure wish people would learn the difference between an ageing population and a shrinking population.
@(Ed) Brazil
"Britain, you are Japan tomorrow. Actually, old"
Two totally different countries other than the fact they are island kingdoms. Yes, Japan's population is going to start shrinking - it hasn't yet though but almost any day now. It's population is estimated to shrink by over 30 million in the next 40 years - not just through a low birthrate but pretty much zero immigration. It is ageing at a rapid rate.
Britain on the other hand, whilst ageing is expected to have an extra 10 million people in the same time.
Ageing yes, shrinking no! A very shallow comparison.
@russelbertrand
"US is shrinking not growing i.e. baby boomers and greatest generation. Also, China has to many old people and to few young workers problem caused by mandatory 1 child laws. Which it seems most US families now practice."
Again, the US population is NOT shrinking. Whilst it is getting older, it is not ageing at anywhere near the pace of other countries, especially places like Japan, South Korea and China.
It's population is expected to grow by about a third in the next 40 years to over 440 million. Hardly shrinking now. Please find me a rich, developed country that is expected to grow by nearly 30%.
As for China, that is a very shallow analysis of the country's population. At this stage, China does not have too many old people, though it is lacking in younger people.
But for at least the next five years, China will enjoy the economic dividend of having it's largest working age cohort ever. However, from about 2015 even this cohort will start to rapidly shrink and THEN China will have the burden of having too many old people. (for those that disagree on my claim, please don't attack the sentiment but attack the facts - they are there provided by the Chinese government for all to see).
Jun 14th 2011, 16:13 by The Economist
Which countries are most optimistic about hiring?
THE outlook for employment in the third quarter of this year is positive in 35 of the 39 countries and territories covered by Manpower, an employment-services firm. The net balance of employers expecting to increase the size of their workforces in the next three months is highest in India and Brazil, at 47 and 37 percentage points respectively. In Italy and Spain employers have been mostly negative about job prospects since early 2008, and their outlook is getting gloomier. By contrast, German and Canadian companies have seen a quick recovery, and report their most positive hiring intentions since the downturn. Even with the opening of its borders to the European Union’s eastern workers in May, Germany's unemployment has been falling sharply. The central bank recently referred to its “extremely favourable labour market developments”.
shaun39 wrote:
What a depressing outlook - especially for Spain, with unemployment already touching on 21%.
Spain has open access to the whole of the EU market, has excellent assets and a well educated/ skilled workforce.
Why can't businesses employ Spain's labor and capital assets? Why do Spaniards not seek employment in Germany, the Netherlands, Austria or Sweden?
Depressed domestic demand doesn't explain the magnitude of Spanish unemployment.
While a combination factors are clearly in play, something is obviously in direct competition with employment: generous welfare payments, subsidized but badly located housing (whether through government or with parents, etc) and black market activity.
Possible solutions: cut benefits to a level significantly below an average starting salary. End all subsidies tied to specific accommodation. Cut all benefit payments to anybody living with (non-disabled) parents.
Do the above: people will move to parts of the EU with better employment prospects; people will leave their parents' homes to seek employment in parts of Spain with better employment prospects; people will accept lower paying jobs as an alternative to idleness.
Spain could go even further: it could replace all benefits (other than health, pensions and disability) with a right to 40 hours of work a week (at 4 euros/ hour).
Other required measures: deregulate employment contracts; cut corporate taxes and local business taxes; get tough on organized crime (it would help if consumption and supply of drugs were entirely legalized; the income tax system were simplified; and there were better use of modern information systems for tracking personal and business transactions).
The deficit would disappear; unemployment would collapse; exports would soar; standards of living would fall (in the short term); business investment would recover; productivity would resume an upwards trend (after the initial hit from incorporating less skilled workers); standards of living would resume an upwards trajectory.
Recommend (20)PermalinkReport abuse
Samkaie wrote: Jun 14th 2011 6:32 GMT
@Calm Incence,
Just out of curiosity,what was your major? And where are you from?
I hope you wouldn't find this personal.
Recommend (17)PermalinkReport abuse
Ed (Brazil) wrote: Jun 14th 2011 7:49 GMT
All countries in this chart can survave going bellow zero for some time, except one: China.
They don't let us, nor their people, to see it on TV, but protests are there... China is a gun powder barrel whose owner has to keep on moving away from the fire that get closer everyday.
Italy and Spain, don't you think the only way you will go back in black is to stop the easy short term solutions and leave the Euro ?
"The Economist", where is Brazil ? I bet Brazil is between Canada gemany and China. If its above, its a buble...
Britain, you are Japan tomorrow. Actuallly, old, earthquake tsunami hit Japan generated much more jobs than you !
India, you are the only hope the World has for the decade that is beggining. Chinese don't play fair with their currency, so the world will face them sometime in the near future. But in order to do that, the world needs to find a replacement. You are the one. Hope you accept the invitation. Otherwise, we might get ready for a period of constant financial turmoil...
"The age of leverage". It will end with unimaginable defaults (not now), some ex-rich countries (Argentina is the worst of examples - in 1900 they had the world's 5th GDP per person). US is no longer the Rome of economics, and the question is, will it be able to sustain its position as the Rome of military ?
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Escha wrote: Jun 14th 2011 8:07 GMT
Apart from Brazil's data another important information is missing: The evolution of the workforce is quite different: shrinking populations in Japan and Germany make it increasingly difficult to hire enough skilled workers, i.e. engineers. However, immigration - as suggested by shaun39 - is not an easy solution, not least because of language difficulties. Have you ever tried to learn German (not to mention Japanese) to a level required by employers? In contrast growing populations in India, China and the US require much greater job growth.
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vmoriz wrote: Jun 14th 2011 10:00 GMT
@shaun39 I liked your macro review, and liked the proposals you made. I'm open to move to countries like Germany, Sweden or Austria. The question is, apart from all the good forecasts those countries report about labour market, are there companies really interested in hiring spaniards? At least from my experience it is not so easy, with the skills and seniority I'm looking for.
Feel free to connect via linkedIn:
http://linkd.in/connect2vfernandez
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russelbertrand wrote: Jun 14th 2011 10:00 GMT
Escha wrote "In contrast growing populations in India, China and the US require much greater job growth."
US is shrinking not growing i.e. baby boomers and greatest generation. Also, China has to many old people and to few young workers problem caused by mandatory 1 child laws. Which it seems most US families now practice.
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An Drew wrote: Jun 14th 2011 10:12 GMT
Britain's Confidence Fairy seems to be doing pretty well.
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Murilo Assis wrote: Jun 14th 2011 10:19 GMT
In Brazil there is a sharp shortage of engineers, technicians, researchers in the following areas: bulding, petrochemical, IT.
I strongly suggest those people that are unenployed in Europe/USA to have closer look in Brazil.
I am brazilian and according to some news I have lately read in newspapers and TV, some projects have been delayed due to lack of people with skills on the a.m. fields.
Due to Olimpic Games, World Cup, Pre-salt layer, the booming areas are as follow: Petrol (pre-salt layer), Buldings (house, dam, airports, ports, ethanol mills, agricultural research, transport and so on...)
For further information Google companies like: PETROBRÁS, EMBRAER, Norberto Odebrecht, EMBRAPA, CAMARGO CORREA, COSAN, COPERSUCAR (all World Class companies).
Needless to say it is necessary you guys know to communicate in portuguese or at least spanish as second language.
Good Luck you!
Murilo Assis
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Steve Thompson wrote: Jun 14th 2011 10:23 GMT
It's interesting to see that the prospects in for employment in the United States are on a very modest uptrend. That said, it is also interesting to note that the wages paid for many jobs in America have not grown in real terms for decades. Here's an article that shows how little incomes have risen in real terms in America over the past 30 years:
http://viableopposition.blogspot.com/2011/02/working-in-america-once-aga...
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Cloudwarrior wrote: Jun 14th 2011 10:25 GMT
I sure wish people would learn the difference between an ageing population and a shrinking population.
@(Ed) Brazil
"Britain, you are Japan tomorrow. Actually, old"
Two totally different countries other than the fact they are island kingdoms. Yes, Japan's population is going to start shrinking - it hasn't yet though but almost any day now. It's population is estimated to shrink by over 30 million in the next 40 years - not just through a low birthrate but pretty much zero immigration. It is ageing at a rapid rate.
Britain on the other hand, whilst ageing is expected to have an extra 10 million people in the same time.
Ageing yes, shrinking no! A very shallow comparison.
@russelbertrand
"US is shrinking not growing i.e. baby boomers and greatest generation. Also, China has to many old people and to few young workers problem caused by mandatory 1 child laws. Which it seems most US families now practice."
Again, the US population is NOT shrinking. Whilst it is getting older, it is not ageing at anywhere near the pace of other countries, especially places like Japan, South Korea and China.
It's population is expected to grow by about a third in the next 40 years to over 440 million. Hardly shrinking now. Please find me a rich, developed country that is expected to grow by nearly 30%.
As for China, that is a very shallow analysis of the country's population. At this stage, China does not have too many old people, though it is lacking in younger people.
But for at least the next five years, China will enjoy the economic dividend of having it's largest working age cohort ever. However, from about 2015 even this cohort will start to rapidly shrink and THEN China will have the burden of having too many old people. (for those that disagree on my claim, please don't attack the sentiment but attack the facts - they are there provided by the Chinese government for all to see).
Friday, June 3, 2011
APSCU on Gainful Employment: Trust but Verify
For more information:
Mary Gotschall Bob Cohen
202-336-6744 202-336-6836
mary.gotschall@apscu.org bob.cohen@apscu.org
APSCU on Gainful Employment: Trust but Verify
Question about Fundamental Legal Authority Remains
WASHINGTON, DC – June 1, 2011 – The Association of Private Sector Colleges and Universities issued the following statement in response to the Department of Education’s release of the gainful employment rule:
We remain very concerned that the gainful employment regulation, while reflecting the fact that the Department has listened to the sector and made changes to its initial proposal, is still using the same ill-advised metric approach to this matter and is clearly outside of its statutory authority. Notwithstanding the changes, the real question is how the regulation will impact students, particularly non-traditional students served by our institutions. We will not know the answer to that until we have had the opportunity to run an independent analysis of the Department’s metric. Our concern is that the regulation will still penalize programs with great outcomes while allowing under-performing programs to continue. We need to trust but verify the impact of the new regulation. The APSCU Board will review the regulation’s impact on students carefully before deciding its next steps.
About APSCU
The Association of Private Sector Colleges and Universities is a voluntary membership organization of accredited, private postsecondary schools, institutes, colleges and universities that provide career-specific educational programs. APSCU has more than 1,900 members that educate and support approximately two million students each year for employment in over 200 occupational fields. APSCU member institutions provide the full range of higher education programs: Master's and doctoral degree programs, two- and four-year associate and baccalaureate degree programs, and short-term certificate and diploma programs. Visit APSCU at www.apscu.org. On September 22, 2010, APSCU changed its name from the Career College Association.
Mary Gotschall Bob Cohen
202-336-6744 202-336-6836
mary.gotschall@apscu.org bob.cohen@apscu.org
APSCU on Gainful Employment: Trust but Verify
Question about Fundamental Legal Authority Remains
WASHINGTON, DC – June 1, 2011 – The Association of Private Sector Colleges and Universities issued the following statement in response to the Department of Education’s release of the gainful employment rule:
We remain very concerned that the gainful employment regulation, while reflecting the fact that the Department has listened to the sector and made changes to its initial proposal, is still using the same ill-advised metric approach to this matter and is clearly outside of its statutory authority. Notwithstanding the changes, the real question is how the regulation will impact students, particularly non-traditional students served by our institutions. We will not know the answer to that until we have had the opportunity to run an independent analysis of the Department’s metric. Our concern is that the regulation will still penalize programs with great outcomes while allowing under-performing programs to continue. We need to trust but verify the impact of the new regulation. The APSCU Board will review the regulation’s impact on students carefully before deciding its next steps.
About APSCU
The Association of Private Sector Colleges and Universities is a voluntary membership organization of accredited, private postsecondary schools, institutes, colleges and universities that provide career-specific educational programs. APSCU has more than 1,900 members that educate and support approximately two million students each year for employment in over 200 occupational fields. APSCU member institutions provide the full range of higher education programs: Master's and doctoral degree programs, two- and four-year associate and baccalaureate degree programs, and short-term certificate and diploma programs. Visit APSCU at www.apscu.org. On September 22, 2010, APSCU changed its name from the Career College Association.
Monday, May 9, 2011
The Do’s of Writing a Spectacular Cover Letter
The old saying, "You only have one chance to make a first impression," is definitely true when meeting someone in person, and it is just as important when you are writing to someone regarding a potential job opportunity. Writing a stellar cover letter becomes even more important in today’s job market when there are so many applicants competing for the same position. You need to set yourself apart from the other applicants. Below are some ideas to consider when writing a cover letter so you can be the one that stands out!
Do be Specific: When possible, address the cover letter to a specific person rather than "To Whom it May Concern." Do your best to research the person responsible for hiring. If it is not listed in the job description, call Human Resources or the Department and find out to whom it should be addressed.
Do be Concise: Cover letter should be one page long and divided into 3-4 paragraphs.
The first paragraph should indicate the reason you are writing and how you heard about the position. Try to open with an attention grabbing, yet professional, sentence. For example, "A proven track record in managerial accounting makes me the perfect candidate for this position," or, "12 years of experience in corporate advertising is the expertise that Smith Company needs."
The second paragraph should be used to explain your qualifications and highlight with specific examples how your skills match what the employer is seeking. For example, saying, "I am an effective sales manager," doesn't actually convey anything to the reader. Instead, try saying, "Over the past year, I have increased sales by over 150% bringing in over $300,000 in sales." Employers love proof that supports what you are saying.
The third paragraph should be used as a closing paragraph to thank the reader for their consideration and to request an opportunity to meet to discuss the position further. You should also provide your contact information (phone number/email) so the employer knows how to reach you. Another option is to be more proactive and state a follow-up action on your part. For example, "I will contact you within the next several days to set-up a time to talk." Then, make sure you actually do what you said you were going to do!
Do Customize: Although you may be sending out cover letters and resumes to multiple companies, do not let the companies know this by creating a generic template letter. For example, instead of writing, "I am very interested in working for your company," customize it by replacing "your company" with the actual company name. Additionally, make sure you address the specific company’s needs with your talents. Employers can tell when you are using a "one size fits all" type cover letter and they don’t like it! By taking a few extra minutes to state the company’s name and addressing how you can benefit them, you could set yourself apart from a generic cover letter.
Do Proofread: If you have grammatical errors or misspellings, this can immediately disqualify you from being considered for a position. Employers often view this as being careless and an inability to write effectively. Always proofread and, when possible, have a friend proofread it as well.
The goal of the cover letter is to grab the reader’s attention by convincing him you are a great candidate, make her want to read your resume and, of course, call you in for an interview so you can brilliantly sell yourself in person just like you did on paper! Good luck!
http://www.higheredjobs.com/career/CoverLetterDos.cfm?utm_source=IU%2B5%2F4%2F11&utm_medium=Email&utm_campaign=Job%2BTip
Do be Specific: When possible, address the cover letter to a specific person rather than "To Whom it May Concern." Do your best to research the person responsible for hiring. If it is not listed in the job description, call Human Resources or the Department and find out to whom it should be addressed.
Do be Concise: Cover letter should be one page long and divided into 3-4 paragraphs.
The first paragraph should indicate the reason you are writing and how you heard about the position. Try to open with an attention grabbing, yet professional, sentence. For example, "A proven track record in managerial accounting makes me the perfect candidate for this position," or, "12 years of experience in corporate advertising is the expertise that Smith Company needs."
The second paragraph should be used to explain your qualifications and highlight with specific examples how your skills match what the employer is seeking. For example, saying, "I am an effective sales manager," doesn't actually convey anything to the reader. Instead, try saying, "Over the past year, I have increased sales by over 150% bringing in over $300,000 in sales." Employers love proof that supports what you are saying.
The third paragraph should be used as a closing paragraph to thank the reader for their consideration and to request an opportunity to meet to discuss the position further. You should also provide your contact information (phone number/email) so the employer knows how to reach you. Another option is to be more proactive and state a follow-up action on your part. For example, "I will contact you within the next several days to set-up a time to talk." Then, make sure you actually do what you said you were going to do!
Do Customize: Although you may be sending out cover letters and resumes to multiple companies, do not let the companies know this by creating a generic template letter. For example, instead of writing, "I am very interested in working for your company," customize it by replacing "your company" with the actual company name. Additionally, make sure you address the specific company’s needs with your talents. Employers can tell when you are using a "one size fits all" type cover letter and they don’t like it! By taking a few extra minutes to state the company’s name and addressing how you can benefit them, you could set yourself apart from a generic cover letter.
Do Proofread: If you have grammatical errors or misspellings, this can immediately disqualify you from being considered for a position. Employers often view this as being careless and an inability to write effectively. Always proofread and, when possible, have a friend proofread it as well.
The goal of the cover letter is to grab the reader’s attention by convincing him you are a great candidate, make her want to read your resume and, of course, call you in for an interview so you can brilliantly sell yourself in person just like you did on paper! Good luck!
http://www.higheredjobs.com/career/CoverLetterDos.cfm?utm_source=IU%2B5%2F4%2F11&utm_medium=Email&utm_campaign=Job%2BTip
Thursday, March 10, 2011
Alphabets for a cause
http://www.thehindu.com/todays-paper/tp-features/tp-metroplus/article1025801.ece
Interview Troy Swanson aims to set up more schools in India to make education accessible to all
A for Amsterdam, B for building schools and C for charity and you have all the basic information about the AlphaBet Club, an NGO headquartered in Amsterdam that works towards building schools for charity. It was founded by Troy Swanson, an ex-techie, who worked with Microsoft before he abandoned his cushy corporate job to make a difference.
“I have been in and out of India several times in the past year, trying to understand the country better,” says Troy who was recently in Bangalore to set up a school.
For the past 10 months he had been raising money with his team for their project in India.
They recruit teachers who live in the area and the cooking and cleaning staff is hired from the slums. “Teachers who accept to work with slum children need to be passionate about teaching. We work around a unique concept which follows an American curriculum and the learning is more hands on.”
“Our goal is to get children of the streets and into classrooms, get them an education, at least one nutritious meal a day and access to medical attention,” says Troy.
According to Troy parents need to realise the importance of an education for their children and want for their children to continue being in school.
“If we have gotten through to the parents and have helped them understand how vital an education is for their children that is half the battle won."
"We give these parents a safe place for their children to learn and grow for four to five hours a day that also gives the parents a chance to go out and earn a living.”
Troy is now urging multinational companies to look into his cause as a part of their corporate social responsibility.
“Companies have the money, and are willing to give, all they ask for is transparency, and I will assure that to them.”
CATHERINE RHEA ROY
Interview Troy Swanson aims to set up more schools in India to make education accessible to all
A for Amsterdam, B for building schools and C for charity and you have all the basic information about the AlphaBet Club, an NGO headquartered in Amsterdam that works towards building schools for charity. It was founded by Troy Swanson, an ex-techie, who worked with Microsoft before he abandoned his cushy corporate job to make a difference.
“I have been in and out of India several times in the past year, trying to understand the country better,” says Troy who was recently in Bangalore to set up a school.
For the past 10 months he had been raising money with his team for their project in India.
They recruit teachers who live in the area and the cooking and cleaning staff is hired from the slums. “Teachers who accept to work with slum children need to be passionate about teaching. We work around a unique concept which follows an American curriculum and the learning is more hands on.”
“Our goal is to get children of the streets and into classrooms, get them an education, at least one nutritious meal a day and access to medical attention,” says Troy.
According to Troy parents need to realise the importance of an education for their children and want for their children to continue being in school.
“If we have gotten through to the parents and have helped them understand how vital an education is for their children that is half the battle won."
"We give these parents a safe place for their children to learn and grow for four to five hours a day that also gives the parents a chance to go out and earn a living.”
Troy is now urging multinational companies to look into his cause as a part of their corporate social responsibility.
“Companies have the money, and are willing to give, all they ask for is transparency, and I will assure that to them.”
CATHERINE RHEA ROY
Thursday, March 3, 2011
For-Profits and Military Money March 2, 2011
WASHINGTON — The Defense Department should increase its oversight of institutions receiving Tuition Assistance Program funds to prevent potential waste and abuse, a new Government Accountability Office report finds.
The tuition program provides money to active duty military personnel who want to attend college while serving, either via distance education or at installations on military bases. In the 2009 fiscal year, more than 376,000 servicemen and women participated in the program, receiving more than $517 million in tuition assistance. In recent months, Democratic senators have spotlighted allegations that several for-profit colleges are abusing this program, especially in how they recruit military personnel.
Released Tuesday, in advance of today’s Senate hearing entitled “Preventing Abuse of the Military's Tuition Assistance Program,” the GAO report concludes that the Defense Department does not focus its oversight efforts on institutions at which there may be an increased risk for problems, has little accountability in its education quality review process, and lacks a centralized system to track complaints.
Additionally, the report notes that the Defense Department reviewed academic courses and services provided only by institutions offering traditional classroom instruction at military installations, and did not review distance education courses, which accounted for 71 percent of courses taken by beneficiaries in fiscal 2009.
Without more oversight, the GAO report argues, institutions receiving tuition assistance funds may engage in “improper or questionable marketing practices.” Though Defense Department officials interviewed for the report noted they don’t keep official records of complaints, they “recalled that most of the instances of a school engaging in improper or questionable marketing practices” have involved for-profit institutions.
For example, Pentagon officials revealed to GAO investigators that one unnamed for-profit institution was charging higher tuition rates to servicemen and women than to civilians and also offering servicemen and women $100 gas cards upon course completion. They also noted that a representative of another unnamed for-profit institution repeatedly called and e-mailed a service member “during day and evening hours” after he chose not to attend that institution.
In closing, the GAO report offers recommendations to improve the Defense Department’s oversight of the tuition program, including mandating that institutions respond to recommendations made by third-party reviews of their programs, creating a centralized process to track complaints against institutions, and requiring state authorization for all institutions.
Legislators Respond to Report
"Because of the high costs, high withdrawal rates, and high default rates among the general student population, combined with troubling stories I have heard from veterans, I am deeply concerned that there is inadequate oversight of our nearly $30 billion in federal aid to for-profit schools, and this report by the GAO confirms my concerns,” Senator Tom Harkin, Iowa Democrat and chairman of the Senate Committee on Health, Education, Labor and Pensions, said in a statement about the report.
Sen. Harkin will testify about his investigation of for-profit institutions at today's hearing, which is hosted by Senator Tom Carper, a Delaware Democrat and chairman of the Senate Homeland Security and Governmental Affairs Subcommittee on Federal Financial Management, Government Information, Federal Services and International Security.
“Over the past year, several reports have indicated that some institutions have taken advantage of our military personnel and have failed to deliver the quality of education they promised to our men and women in uniform,” wrote Senator Carper in a statement about the GAO report and today’s hearing. “The accounts of abuse range from deceptive recruitment practices, to schools' hollow promises about transferability of credits, to students becoming saddled with unnecessary debt. This is troubling news, and it raises some serious questions about the Department of Defense's ability to prevent against schools' abuse of the Tuition Assistance Program. We demand so much of our men and women in uniform. We must also demand more from our schools and get better results from our government."
For-Profit Advocates Question GAO
Though legislators are focusing their attention on the current GAO report, many for-profit college advocates still have not gotten over the GAO’s last report on for-profit colleges, which they allege manipulated data and misstated facts.
Penny Lee, managing director of the Coalition for Educational Success, a career college advocacy group, said the GAO’s “reputation has been tarnished” as a result of its last report, which the agency later had to revise. (Harkin defended the GAO’s revisions last December in an Inside Higher Ed essay.) Until the GAO “fully addresses” the issues in last year's report, Lee said she and her colleagues will remain dubious of its further reports and recommendations. The GAO announced Wednesday that it was restructuring and renaming the team responsible for the report on for-profit institutions.
Harris Miller, president of the Association of Private Sector College and Universities, which represents for-profit institutions, seconded Lee’s demand that the GAO retract its prior report. Still, he said he would not hold what he saw as the last report’s errors against this GAO report, which he said he thought was “up to [the agency's historical] standards.”
“Still, I don’t agree with everything in it,” said Miller, noting that he would have preferred that the report leave out the specific examples of abuses perpetrated by for-profit institutions, which he called “hearsay.” He also said he took issue with the recommendation that all institutions must be state approved to be TAP-eligible, a tactic the Education Department is now using for Pell Grant eligibility. APSCU is currently suing to stop this Education Department requirement.
Representatives from some specific for-profit institutions were much more accepting of the GAO report.
Jim Sweizer, vice president of military programs at American Military University, said he appreciates the oversight suggested by the GAO report.
“We do not engage in any of those [questionable] practices here at [the American Public University System],” Sweizer said. “It would be hypocritical of me to be against them my whole military education career and then come here and suddenly be for them.… We feel we’re in full compliance. The extra scrutiny doesn’t bother us at all. We welcome it. We’ll do whatever it takes.”
Government Seeks New Quality Monitor
The GAO report also noted that the four-year, $3.7 million contract that the Pentagon had with the American Council on Education to monitor course quality was not renewed after the end of last year, and thus no review will be conducted until later this year — a lapse that concerns legislators like Carper. The Defense Department is seeking a new contractor and hopes to resume reviews by Oct. 1, 2011.
Jim Selbe, assistant vice president for lifelong learning at ACE, said the criticism levied in the GAO report about the monitoring of course quality had more to do with the charge given to ACE in the Defense Department contract than with ACE’s work itself. He noted that the contract would need to be revised so that more TAP-eligible institutions could be reviewed. Only when a new contract was available, detailing what work would need to be done, would ACE consider whether to seek the contract again, Selbe said.
The tuition program provides money to active duty military personnel who want to attend college while serving, either via distance education or at installations on military bases. In the 2009 fiscal year, more than 376,000 servicemen and women participated in the program, receiving more than $517 million in tuition assistance. In recent months, Democratic senators have spotlighted allegations that several for-profit colleges are abusing this program, especially in how they recruit military personnel.
Released Tuesday, in advance of today’s Senate hearing entitled “Preventing Abuse of the Military's Tuition Assistance Program,” the GAO report concludes that the Defense Department does not focus its oversight efforts on institutions at which there may be an increased risk for problems, has little accountability in its education quality review process, and lacks a centralized system to track complaints.
Additionally, the report notes that the Defense Department reviewed academic courses and services provided only by institutions offering traditional classroom instruction at military installations, and did not review distance education courses, which accounted for 71 percent of courses taken by beneficiaries in fiscal 2009.
Without more oversight, the GAO report argues, institutions receiving tuition assistance funds may engage in “improper or questionable marketing practices.” Though Defense Department officials interviewed for the report noted they don’t keep official records of complaints, they “recalled that most of the instances of a school engaging in improper or questionable marketing practices” have involved for-profit institutions.
For example, Pentagon officials revealed to GAO investigators that one unnamed for-profit institution was charging higher tuition rates to servicemen and women than to civilians and also offering servicemen and women $100 gas cards upon course completion. They also noted that a representative of another unnamed for-profit institution repeatedly called and e-mailed a service member “during day and evening hours” after he chose not to attend that institution.
In closing, the GAO report offers recommendations to improve the Defense Department’s oversight of the tuition program, including mandating that institutions respond to recommendations made by third-party reviews of their programs, creating a centralized process to track complaints against institutions, and requiring state authorization for all institutions.
Legislators Respond to Report
"Because of the high costs, high withdrawal rates, and high default rates among the general student population, combined with troubling stories I have heard from veterans, I am deeply concerned that there is inadequate oversight of our nearly $30 billion in federal aid to for-profit schools, and this report by the GAO confirms my concerns,” Senator Tom Harkin, Iowa Democrat and chairman of the Senate Committee on Health, Education, Labor and Pensions, said in a statement about the report.
Sen. Harkin will testify about his investigation of for-profit institutions at today's hearing, which is hosted by Senator Tom Carper, a Delaware Democrat and chairman of the Senate Homeland Security and Governmental Affairs Subcommittee on Federal Financial Management, Government Information, Federal Services and International Security.
“Over the past year, several reports have indicated that some institutions have taken advantage of our military personnel and have failed to deliver the quality of education they promised to our men and women in uniform,” wrote Senator Carper in a statement about the GAO report and today’s hearing. “The accounts of abuse range from deceptive recruitment practices, to schools' hollow promises about transferability of credits, to students becoming saddled with unnecessary debt. This is troubling news, and it raises some serious questions about the Department of Defense's ability to prevent against schools' abuse of the Tuition Assistance Program. We demand so much of our men and women in uniform. We must also demand more from our schools and get better results from our government."
For-Profit Advocates Question GAO
Though legislators are focusing their attention on the current GAO report, many for-profit college advocates still have not gotten over the GAO’s last report on for-profit colleges, which they allege manipulated data and misstated facts.
Penny Lee, managing director of the Coalition for Educational Success, a career college advocacy group, said the GAO’s “reputation has been tarnished” as a result of its last report, which the agency later had to revise. (Harkin defended the GAO’s revisions last December in an Inside Higher Ed essay.) Until the GAO “fully addresses” the issues in last year's report, Lee said she and her colleagues will remain dubious of its further reports and recommendations. The GAO announced Wednesday that it was restructuring and renaming the team responsible for the report on for-profit institutions.
Harris Miller, president of the Association of Private Sector College and Universities, which represents for-profit institutions, seconded Lee’s demand that the GAO retract its prior report. Still, he said he would not hold what he saw as the last report’s errors against this GAO report, which he said he thought was “up to [the agency's historical] standards.”
“Still, I don’t agree with everything in it,” said Miller, noting that he would have preferred that the report leave out the specific examples of abuses perpetrated by for-profit institutions, which he called “hearsay.” He also said he took issue with the recommendation that all institutions must be state approved to be TAP-eligible, a tactic the Education Department is now using for Pell Grant eligibility. APSCU is currently suing to stop this Education Department requirement.
Representatives from some specific for-profit institutions were much more accepting of the GAO report.
Jim Sweizer, vice president of military programs at American Military University, said he appreciates the oversight suggested by the GAO report.
“We do not engage in any of those [questionable] practices here at [the American Public University System],” Sweizer said. “It would be hypocritical of me to be against them my whole military education career and then come here and suddenly be for them.… We feel we’re in full compliance. The extra scrutiny doesn’t bother us at all. We welcome it. We’ll do whatever it takes.”
Government Seeks New Quality Monitor
The GAO report also noted that the four-year, $3.7 million contract that the Pentagon had with the American Council on Education to monitor course quality was not renewed after the end of last year, and thus no review will be conducted until later this year — a lapse that concerns legislators like Carper. The Defense Department is seeking a new contractor and hopes to resume reviews by Oct. 1, 2011.
Jim Selbe, assistant vice president for lifelong learning at ACE, said the criticism levied in the GAO report about the monitoring of course quality had more to do with the charge given to ACE in the Defense Department contract than with ACE’s work itself. He noted that the contract would need to be revised so that more TAP-eligible institutions could be reviewed. Only when a new contract was available, detailing what work would need to be done, would ACE consider whether to seek the contract again, Selbe said.
Gathering of For-Profit Colleges reaching Common Ground?
Unusual Gathering of For-Profit Colleges
With their institutions under increasing scrutiny on many fronts, leaders of for-profit colleges have responded in many ways -- including lots of aggressive political lobbying and some forceful legal actions.
On Thursday, a group of the institutions took a slightly more positive tack: talking among themselves -- and with leaders of sector-crossing national higher education associations -- about how they can respond to the concerns about their integrity and improve their students' learning experiences. At a closed two-day meeting at (of all places) the Princeton Club in New York City, the presidents of 32 regionally accredited career colleges gathered to discuss their common concerns and how they might work together to address them.
The meeting did not take place under the aegis of any existing group or, at least for now, with any specific, stated goal; a spokeswoman for the organizer, Dario A. Cortes, president of New York's Berkeley College, said that the gathering had emerged from a series of discussions he had had with individual presidents about a need for a "national conversation" among the institutions. Whether it eventually leads to more meetings or some kind of common plan of action is still uncertain, said the spokeswoman, Laura Jewell.
But already the meeting differed from many other recent gatherings of for-profit college officials. First, it included officials from two national groups, the American Council on Education and the Association of Governing Boards of Universities and Colleges, that are dominated by traditional nonprofit institutions but include regionally accredited for-profit colleges among their members. It also included representatives of some of the regional accrediting agencies themselves.
And second, Thursday's meeting contained "no discussion" of how the institutions might lobby against or otherwise fight the heightened regulatory pressure or political scrutiny they are facing, said Terry W. Hartle, who heads the government and public affairs arm of the American Council on Education and attended the meeting.
Yes, there was a lot of talk about allegations of admissions abuses that have been leveled against some for-profit colleges in a U.S. Senate committee's inquiry into the sector, among other issues of particular interest to this set of colleges, Hartle said. But much of the discussion was about concerns that these colleges share with some of their nonprofit peers, such as students who enroll not "ready to do college-level work," Hartle said. "The discussion was candid and frank, and not terribly angry either."
Just how much common ground these colleges can find, and what it might lead them to do -- sponsor research on learning practices, for instance -- remains to be seen. While all of them are accredited by one of the seven regional accreditors (as opposed to the national agencies that accredit the vast majority of for-profit colleges), there is enormous variation among them, from massive publicly traded companies like the University of Phoenix and DeVry University, to 9,000-student institutions like Berkeley, to specialty institutions with under 1,500 students, like the College of Westchester and Harrington College of Design.
With their institutions under increasing scrutiny on many fronts, leaders of for-profit colleges have responded in many ways -- including lots of aggressive political lobbying and some forceful legal actions.
On Thursday, a group of the institutions took a slightly more positive tack: talking among themselves -- and with leaders of sector-crossing national higher education associations -- about how they can respond to the concerns about their integrity and improve their students' learning experiences. At a closed two-day meeting at (of all places) the Princeton Club in New York City, the presidents of 32 regionally accredited career colleges gathered to discuss their common concerns and how they might work together to address them.
The meeting did not take place under the aegis of any existing group or, at least for now, with any specific, stated goal; a spokeswoman for the organizer, Dario A. Cortes, president of New York's Berkeley College, said that the gathering had emerged from a series of discussions he had had with individual presidents about a need for a "national conversation" among the institutions. Whether it eventually leads to more meetings or some kind of common plan of action is still uncertain, said the spokeswoman, Laura Jewell.
But already the meeting differed from many other recent gatherings of for-profit college officials. First, it included officials from two national groups, the American Council on Education and the Association of Governing Boards of Universities and Colleges, that are dominated by traditional nonprofit institutions but include regionally accredited for-profit colleges among their members. It also included representatives of some of the regional accrediting agencies themselves.
And second, Thursday's meeting contained "no discussion" of how the institutions might lobby against or otherwise fight the heightened regulatory pressure or political scrutiny they are facing, said Terry W. Hartle, who heads the government and public affairs arm of the American Council on Education and attended the meeting.
Yes, there was a lot of talk about allegations of admissions abuses that have been leveled against some for-profit colleges in a U.S. Senate committee's inquiry into the sector, among other issues of particular interest to this set of colleges, Hartle said. But much of the discussion was about concerns that these colleges share with some of their nonprofit peers, such as students who enroll not "ready to do college-level work," Hartle said. "The discussion was candid and frank, and not terribly angry either."
Just how much common ground these colleges can find, and what it might lead them to do -- sponsor research on learning practices, for instance -- remains to be seen. While all of them are accredited by one of the seven regional accreditors (as opposed to the national agencies that accredit the vast majority of for-profit colleges), there is enormous variation among them, from massive publicly traded companies like the University of Phoenix and DeVry University, to 9,000-student institutions like Berkeley, to specialty institutions with under 1,500 students, like the College of Westchester and Harrington College of Design.
Tuesday, January 4, 2011
Will the For-Profit Education Bubble Burst in 2011?
Will the For-Profit Education Bubble Burst in 2011?
http://www.consumeraffairs.com/news04/2010/12/will-the-for-profit-education-bubble-burst-in-2011.html
First there was the high-tech bubble, then the housing bubble. What bubble will burst in 2011?
Many are betting it will be for-profit education - as critics question the value of the expensive degrees and certificates awarded by the likes of Kaplan University and the University of Phoenix.
"Serious questions have emerged about the share of the military educational benefit pool going to for-profit schools with questionable outcomes," said a report issued earlier this month by the Senate's Health, Education Labor and Pensions Committee.
The "gainful employment" Rule Will Deny Two Million Students The Opportunity to Go to College. Committee chair Tom Harkin (D-Iowa) said that by extending benefits similar to the GI Bill to current veterans, "Congress may have unintentionally subjected this new generation of veterans to the worst excesses of the for-profit industry: manipulative and misleading marketing campaigns, educational programs far more expensive than comparable public or nonprofit programs, and a lack of needed services."
The for-profit colleges make big profits on federally-guaranteed loans but critics say that even students who graduate - a small percentage - aren't likely to snag the kind of high-paying positions they're led to expect.
For-profit schools exploded over the last decade. They appeal to working adults seeking training that will help them advance their careers, veterans and active-duty military hoping to smooth the transition to civilian life and, in many cases, those who did poorly in high school and are unable to gain admittance to more selective universities.
Kaplan's bubble may already have burst. Owned by the Washington Post Company, Kaplan is facing Congressional investigations and numerous lawsuits, including a whistle-blower suit filed by the school's former director of education, David Goodstein.
The lawsuits claim that Kaplan recruiters aggressively signed up students who were unqualified and enrolled students in vocational-training courses for industries that they knew to be over-staffed.
Alarmed by the reports of graduates who leave school with heavy debt only to wind up working low-paying jobs, the U.S. Department of Education has proposed regulations that would cut off federal financing to programs that have high debt-to-income ratios and low repayment rates.
One such student is Hope of Hahira, Ga. She graduated from Kaplan in 2006 with an associates degree in paralegal studies and despite having a straight-A average in school, she was fired after a year because her Kaplan education was inadequate, she said in a complaint to ConsumerAffairs.com.
"I now owe all of this student loan debt and am unable to find a job in my field and am in default of my student loans because I can't support myself," Hope said. "I wish that I had known that this school was not a school where credits are transferable and where the "material" isn't appropriate or conducive to learning how to work in the legal environment."
The Washington Post Company has been quick to defend Kaplan, its most profitable unit. It reported spending $350,000 on lobbying during the third quarter of 2010, more than any other higher-education company.
Post Company chairman Donald Graham, a powerful figure in Washington, has also put his personal influence to work, schmoozing lawmakers and regulators. The Post has editorialized against the regulations, saying they would limit students' choices.
"The aim of the regulations was to punish bad actors, but the effect is to punish institutions that serve poor students," Graham said in a recent interview with The New York Times.
But Department of Education figures show that only 28 percent of Kaplan students were repaying their student loans - well below the 45 percent level generally considered the minimum acceptable rate. At the University of Phoenix, by contrast, 44 percent of students were repaying their loans.
The Florida Attorney General has also launched an investigation of Kaplan. In a statement, the office of Attorney General Bill McCollum said the investigation concerned "alleged misrepresentations regarding financial aid; alleged unfair/deceptive practices regarding recruitment, enrollment, accreditation, placement, graduation rates, etc."
Earlier this year, Sen. Harkin's committee held hearings that included undercover videos showing high-pressure recruiting tactics by Kaplan and other for-profit colleges.
The Post Company's Graham called the videos "sickening" and said the company has done its best to clean up the abuses.
The lobbying muscle of the Post Company and other for-profit education companies may be adequate to squash further Congressional action and head off restrictive new regulations.
But the question for consumers to ponder is whether a degree or certificate from a for-profit school will carry the same weight as a similar degree from a community college or public four-year university. Returning veterans and job-seekers hoping to advance their prospects are often better off going directly to potential employers and talking with them about the requirements and aptitudes they look for in prospective employees, employment counselors say.
http://www.consumeraffairs.com/news04/2010/12/will-the-for-profit-education-bubble-burst-in-2011.html
First there was the high-tech bubble, then the housing bubble. What bubble will burst in 2011?
Many are betting it will be for-profit education - as critics question the value of the expensive degrees and certificates awarded by the likes of Kaplan University and the University of Phoenix.
"Serious questions have emerged about the share of the military educational benefit pool going to for-profit schools with questionable outcomes," said a report issued earlier this month by the Senate's Health, Education Labor and Pensions Committee.
The "gainful employment" Rule Will Deny Two Million Students The Opportunity to Go to College. Committee chair Tom Harkin (D-Iowa) said that by extending benefits similar to the GI Bill to current veterans, "Congress may have unintentionally subjected this new generation of veterans to the worst excesses of the for-profit industry: manipulative and misleading marketing campaigns, educational programs far more expensive than comparable public or nonprofit programs, and a lack of needed services."
The for-profit colleges make big profits on federally-guaranteed loans but critics say that even students who graduate - a small percentage - aren't likely to snag the kind of high-paying positions they're led to expect.
For-profit schools exploded over the last decade. They appeal to working adults seeking training that will help them advance their careers, veterans and active-duty military hoping to smooth the transition to civilian life and, in many cases, those who did poorly in high school and are unable to gain admittance to more selective universities.
Kaplan's bubble may already have burst. Owned by the Washington Post Company, Kaplan is facing Congressional investigations and numerous lawsuits, including a whistle-blower suit filed by the school's former director of education, David Goodstein.
The lawsuits claim that Kaplan recruiters aggressively signed up students who were unqualified and enrolled students in vocational-training courses for industries that they knew to be over-staffed.
Alarmed by the reports of graduates who leave school with heavy debt only to wind up working low-paying jobs, the U.S. Department of Education has proposed regulations that would cut off federal financing to programs that have high debt-to-income ratios and low repayment rates.
One such student is Hope of Hahira, Ga. She graduated from Kaplan in 2006 with an associates degree in paralegal studies and despite having a straight-A average in school, she was fired after a year because her Kaplan education was inadequate, she said in a complaint to ConsumerAffairs.com.
"I now owe all of this student loan debt and am unable to find a job in my field and am in default of my student loans because I can't support myself," Hope said. "I wish that I had known that this school was not a school where credits are transferable and where the "material" isn't appropriate or conducive to learning how to work in the legal environment."
The Washington Post Company has been quick to defend Kaplan, its most profitable unit. It reported spending $350,000 on lobbying during the third quarter of 2010, more than any other higher-education company.
Post Company chairman Donald Graham, a powerful figure in Washington, has also put his personal influence to work, schmoozing lawmakers and regulators. The Post has editorialized against the regulations, saying they would limit students' choices.
"The aim of the regulations was to punish bad actors, but the effect is to punish institutions that serve poor students," Graham said in a recent interview with The New York Times.
But Department of Education figures show that only 28 percent of Kaplan students were repaying their student loans - well below the 45 percent level generally considered the minimum acceptable rate. At the University of Phoenix, by contrast, 44 percent of students were repaying their loans.
The Florida Attorney General has also launched an investigation of Kaplan. In a statement, the office of Attorney General Bill McCollum said the investigation concerned "alleged misrepresentations regarding financial aid; alleged unfair/deceptive practices regarding recruitment, enrollment, accreditation, placement, graduation rates, etc."
Earlier this year, Sen. Harkin's committee held hearings that included undercover videos showing high-pressure recruiting tactics by Kaplan and other for-profit colleges.
The Post Company's Graham called the videos "sickening" and said the company has done its best to clean up the abuses.
The lobbying muscle of the Post Company and other for-profit education companies may be adequate to squash further Congressional action and head off restrictive new regulations.
But the question for consumers to ponder is whether a degree or certificate from a for-profit school will carry the same weight as a similar degree from a community college or public four-year university. Returning veterans and job-seekers hoping to advance their prospects are often better off going directly to potential employers and talking with them about the requirements and aptitudes they look for in prospective employees, employment counselors say.
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