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For critics of DeVos, sale of DeVry chain raises red flags
Source: Associated Press
For critics of DeVos, sale of DeVry chain raises red flags
By COLLIN BINKLEY and RICHARD LARDNER
36 minutes ago
WASHINGTON (AP) — A little-known venture capitalist is on the verge of acquiring one of the biggest for-profit colleges in the country, a transaction that would put him in control of a troubled national chain that’s more than 60 times the size of the tiny California school he currently owns.
The business friendly Trump administration has given a tentative green light to the sale of DeVry University to Bradley Palmer, chairman of Connecticut-based Palm Ventures, even as critics warn the deal raises red flags. Chief among them is the challenge of taking over such a large institution. DeVry, which has an annual enrollment of about 46,000, also faces thousands of fraud complaints filed by students.
The DeVry acquisition is the inverse of how Washington typically works. Often companies and their top executives spend heavily to influence a government decision or policy in their favor. But there’s no sign that any of the parties employed lobbyists or made significant political contributions specifically to push the sale forward.
Like most transactions in the for-profit world, the DeVry deal has received little public scrutiny even though millions of dollars in federal financial aid are at stake. And the change in ownership is moving along at the same time Education Secretary Betsy DeVos works to dismantle Obama-era regulations designed to better police the industry and increase protections for students.
If the DeVry deal is finalized, it would be another in a series of recent sales meant to breathe new life into troubled for-profit colleges. ...
-snip-
By COLLIN BINKLEY and RICHARD LARDNER
36 minutes ago
WASHINGTON (AP) — A little-known venture capitalist is on the verge of acquiring one of the biggest for-profit colleges in the country, a transaction that would put him in control of a troubled national chain that’s more than 60 times the size of the tiny California school he currently owns.
The business friendly Trump administration has given a tentative green light to the sale of DeVry University to Bradley Palmer, chairman of Connecticut-based Palm Ventures, even as critics warn the deal raises red flags. Chief among them is the challenge of taking over such a large institution. DeVry, which has an annual enrollment of about 46,000, also faces thousands of fraud complaints filed by students.
The DeVry acquisition is the inverse of how Washington typically works. Often companies and their top executives spend heavily to influence a government decision or policy in their favor. But there’s no sign that any of the parties employed lobbyists or made significant political contributions specifically to push the sale forward.
Like most transactions in the for-profit world, the DeVry deal has received little public scrutiny even though millions of dollars in federal financial aid are at stake. And the change in ownership is moving along at the same time Education Secretary Betsy DeVos works to dismantle Obama-era regulations designed to better police the industry and increase protections for students.
If the DeVry deal is finalized, it would be another in a series of recent sales meant to breathe new life into troubled for-profit colleges. ...
-snip-
Read more: https://apnews.com/045e3dceb8c64f3289bd741f526d11d9/For-critics-of-DeVos,-sale-of-DeVry-chain-raises-red-flags
