1 year ago

For-profit college closes operations, surprising students

One of the nation’s largest for-profit college chains announced Wednesday that it was abruptly closing in dozens of locations nationwide, after its accrediting agency suspended approval.

Birmingham, Alabama-based Education Corp. of America said it was closing schools operating as Virginia College, Brightwood College, Brightwood Career Institute, Ecotech Institute and Golf Academy of America in more than 70 locations in 21 states. The company said in October that it had more than 20,000 students, although more recent documents indicate the number may be closer to 15,000.

The company, backed by investors including private equity firm Willis Stein & Partners of Chicago, is the latest in a series of for-profit colleges to close after allegations that they were loading students up with debt while not providing them with marketable skills.

In some cases, students told local news outlets Wednesday that operations ceased immediately, while in other cases students said they were told to return for meetings later.

ECA spokeswoman Diane Worthington said that at most locations, Friday would be the last day of classes, and students would get academic credit for this term.

One ECA institution, New England College of Business, is not closing.

The company mostly offers professional certificates in subjects like cosmetology, culinary arts and medical and dental assisting.

In a letter to students, ECA CEO Stuart Reed said the company’s impending loss of accreditation, along with added requirements from the U.S. Department of Education, made the company unable to raise more money to operate the schools while it sought to reorganize.

“It is with extreme regret that this series of recent circumstances has forced us to discontinue the operation of our schools,” Reed wrote.

In October, the company sued the U.S. Education Department seeking to maintain its federal funding, which was in jeopardy over its dire financial situation.

A judge later dismissed the suit.

Court documents filed by the company said its lagging revenue left it unable to make payments on its debt or rental fees, and that it faced eviction at several campuses.

ECA estimated it owed $66 million at the time. Even before then, ECA was planning to shutter 26 campuses to cut costs.

Another federal judge in Georgia later granted a bankruptcy-like receivership meant to protect the company from creditors.

ECA largely blamed falling enrollment on an upswing in the economy, which left fewer adults heading to school for job skills, and on increased federal regulation of the for-profit college industry.

The sudden closure drew criticism from the U.S. Education Department, which said it had been working with the company to arrange a shut-down that gave students time to transfer.

“Instead of taking the next few months to close in an orderly fashion, ECA took the easy way out and left 19,000 students scrambling to find a way to finish the education program they started,” Liz Hill, an Education Department spokeswoman, said in a statement.

Like the recently shuttered Corinthian Colleges and ITT Technical Institute chains, Education Corporation of America was overseen by the Accrediting Council for Independent Colleges and Schools, one of the watchdog groups the federal government appoints to ensure colleges offer a quality education.

The council, known as ACICS, wrote a Tuesday letter to Reed saying it was suspending accreditation immediately at all the institutions, citing “rapidly deteriorating financial conditions,” a failure to make required payments to the council and a wide variety of academic concerns.

ACICS was shut down by the Obama administration over allegations of lax oversight, but was later reinstated on Nov. 21 by Education Secretary Betsy DeVos, who found it was “substantially in compliance” with federal standards.

Virginia Rep. Bobby Scott, the top Democrat on the House Education and the Workforce Committee, urged DeVos to rethink her decision on ACICS after the Wednesday closure.

“We have repeatedly warned about the risks low-quality, for-profit education companies and irresponsible accreditors pose to students and taxpayers across the country,” Scott said in a statement. “Today’s announcement is another painful reminder of those risks.”

In many cases, students and teachers were in class when they got the news Wednesday.

Melissa Zavala, who was studying to be a medical assistant at a San Antonio, Texas, campus of Brightwood, told KSAT-TV students were taken to an auditorium.

“The director was there and she was like, ‘I have bad news. The school is closing down,'” Zavala said. “Everyone was like, ‘What about our student loans? We’re almost done.'”

Zavala said campus officials could not provide additional information and told them to look online for other colleges they could attend.

“They took our money, they shut the school down and that’s it for us,” Zavala said.

Toby Merrill, who directs the Project on Predatory Student Lending at Harvard Law School, said students can ask the U.S. Department of Education to cancel loans if a school closes.

However, that opportunity does not apply if a student transfers credits or if a school hires a successor to offer students classes to complete their programs.
(Associated Press, copyright 2018)

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7 hours ago

Mayor Randall Woodfin throws down the gauntlet at Birmingham Business Alliance meeting

BIRMINGHAM — Delivering opening remarks at the Birmingham Business Alliance’s (BBA) annual meeting on Wednesday, Magic City Mayor Randall Woodfin challenged the region’s business leaders to stop being so “risk averse.”

Woodfin opened his speech with words of praise for outgoing BBA chairwoman Nancy Goedecke and incoming chairman Jim Gorrie.

He then transitioned into a call-to-action.

“Usually I would get up here and give you all some stats about what we’ve done and what we’ve accomplished,” the mayor advised. “I think it is fair to say that 2019 has been a good year for many [in] your organization — individually and collectively for our Birmingham Business Alliance.”

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Woodfin advised that the BBA leadership is pointing the region’s business community in the right direction.

“And the question is: as members of this organization, are we prepared? Are we ready?” he added.

“I don’t have to tell anyone in this room that since the Great Recession… 60% of all jobs have only gone to 25 cities in America,” Woodfin continued. “You need to know that Birmingham is not on that list. So the question becomes, when you walk out of this room, are we prepared to invest in our competitiveness? Do we want to compete? Do we want to set ourselves apart and not be like any other city in America?”

“We don’t have to be like Nashville or Chattanooga or Atlanta or Austin,” he said. “We need to be the best versions of ourselves.”

The mayor outlined the road to getting to that goal.

“That is going to require us to shake off the way we’ve always done things… just based on the sheer nature of what you do, you’re risk averse. But being risk averse in this time as we move into 2020 under Jim’s (Gorrie’s) leadership will not work for us as an organization or as a city. Or for the future and present of what we want our business community to be — to attract, retain, grow and many other things we have to do,” Woodfin stressed.

“As my challenge I leave to the members of this organization in this room, that we are willing to stand behind Jim, just as we did with Nancy (Goedecke), but really be aggressive,” he concluded. “Really be the opposite of risk averse and be hungry enough to do something that’s going to be different to make Birmingham a place that attracts more businesses and for the current businesses in this community to be and remain successful.”

RELATED: Almost two years in, Randall Woodfin reflects on biggest initiatives

Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn

10 hours ago

Above and beyond: Regions associate honored with Better Life Award after learning sign language to serve deaf customers

Regions Bank on Wednesday honored one of its Alabama associates in a major way for going above and beyond to better the lives of the company’s customers.

In a story posted on Region’s “Doing More Today” website, the company announced Gayla Land was presented with the Better Life Award. This is the top honor bestowed upon Regions associates “for outstanding dedication and job performance, as well as exemplary involvement and commitment to the community.”

For Land, a Regions Bank branch manager in Dothan, the genesis of the award goes back to 2016. She was reportedly serving a deaf customer but wanted to be able to do so better, as communicating properly was a real issue.

“I felt there was something missing. It frustrated me,” Land reminisced. “I could only provide what I could write down. I couldn’t share the information in his approved language.”

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The Regions associate turned that frustration into a solution. Land, on her own time, went out of the way to enroll in American Sign Language classes at the Alabama Institute for the Deaf and Blind.

However, her dedication did not stop there. She not only learned sign language herself but decided to strike up a partnership with the school.

“I fell in love with the deaf community and the language itself,” Land explained. “Then I told the school, ‘Let’s make a partnership to have them come into the branch for financial education seminars,’ and they agreed.”

The student subsequently became the teacher, as Land began teaching in sign language a series of lessons that cover money management, retirement, identity theft and fraud prevention. Her first group reportedly graduated earlier this year.

This is having a real impact on the lives of Regions customers with hearing impairments.

“They feel more confident in their ability to make financial decisions, and I learn something new every time they are with me.” Land advised.

Her commitment to the hearing impaired continued to be displayed Wednesday when she received the award from Regions. The company donates $1,000 in the honoree’s name to a nonprofit organization of his or her choice, and Land chose the Alabama Institute for the Deaf and Blind to receive the money.

“They do great work providing skills and education to the deaf and blind communities,” she remarked. “I know they will make great use of the money to provide for those families.”

However, her journey is not done yet.

Land is planning to sharpen her sign language fluency by taking advanced classes.

She also used her new platform to urge others to learn the language as well.

“Don’t be fearful or feel judged. Just try to learn. Even if it’s just one new word every day,” Land concluded. “Your eyes will be opened to a new perspective, and you’ll be embraced by the deaf community because you tried.”

You can watch an almost six-minute video on see Land’s work in action below or here.

RELATED: Merry and bright: How Regions’ headquarters building lights became a holiday tradition

Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn

11 hours ago

Auburn’s Bo Nix named SEC Freshman of the Year, Derrick Brown named best defensive player

The Southeastern Conference’s (SEC) 14 coaches have voted Auburn University quarterback Bo Nix as the SEC Freshman of the Year and defensive tackle Derrick Brown as the Defensive Player of the Year.

The honors were announced Wednesday by the league office. Coaches are not allowed to vote for their own players.

Brown was also named by the Associated Press as the AP’s SEC Defensive Player of the Year earlier in the week.

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Nix now holds the Auburn Tigers’ freshman record for passing yards (2,366), pass completions (200) and touchdown passes (15) in a season. The Alabama native also rushed for seven scores.

Brown had a monster season on the defensive side of the ball and landed as a finalist for just about every national award possible.

Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn

11 hours ago

Rogers’ report from Washington: The season of giving across East Alabama

WASHINGTON, D.C. — Each Christmas season, I like to highlight a few of the kind things folks across East Alabama are doing for others.

Below is a small sample of ways our fellow Alabamians have cared for each other over the past year.

In Clay County at Central High School, a teacher, Amanda East, gathered the school supplies that were going to be disposed of from the locker clean out. Those items are now set up to donate to students who need them.

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In Lee County, The Hallmark Channel is coming to Beauregard to present new homes to the 15 families who lost everything when the EF-4 tornado devastated the area.

Hallmark will also serve residents a holiday meal at Providence Baptist Church with Santa and toys for the little ones, too.

In Calhoun County, Dara Murphy of Rosa Lee Boutique organized a White Bag Project for individuals to grab a white bag and fill it up for a child in need. They are also taking clothing and furniture to 20 families.

In Lee, Macon and Tallapoosa Counties, Rep. Peeblin Warren assists 400 seniors with gift baskets.

In Randolph County, the Roanoke Police Department is holding its annual toy drive to ensure local children get a Christmas gift.

In Chambers County, the Christian Service Center collects food and toys to donate to families.

In Montgomery County, Woodland United Methodist Church/Town of Pike Road distribute food. Pike Road and Central Alabama Health Care Systems also distribute hygiene items for local veterans.

Reading these stories makes me proud to be from East Alabama. It is truly heartwarming to see our brothers and sisters across the Third District taking time to take care for someone who needs it most.

May we carry this attitude of service to others all year long.

Wishing you and your families a very Merry Christmas. Remember the reason for the season.

U.S. Rep. Mike Rogers is a Republican from Saks. 

12 hours ago

Crimson Tide’s Jaylen Waddle named SEC Special Teams Player of the Year

University of Alabama sophomore wide receiver and returner Jaylen Waddle on Wednesday was announced as the Southeastern Conference (SEC) Special Teams Player of the Year.

He is the first Crimson Tide player to be named SEC Special Teams Player of the Year since Christion Jones in 2013. The honor was voted on by the league’s 14 head coaches, with coaches not permitted to vote for their own players.

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Waddle, who was already selected by Pro Football Focus as a first-team All-American at returner, led the nation this season in punt return average at 24.9 yards per return. Waddle had 19 punt returns for 474 yards and a touchdown, including a long of 77 yards.

The playmaker also returned four kickoffs for 152 yards and one touchdown this season, in addition to 553 yards and six touchdowns on 32 catches at wideout.

This comes after Waddle was one of 14 Bama players on Tuesday who were named to the All-SEC Coaches’ Team. He was actually named to both the first and second teams at different positions.

Juniors Jerry Jeudy (WR), Alex Leatherwood (OL) and Jedrick Wills, Jr. (OL) were first-team selections on offense, while redshirt senior Anfernee Jennings (LB) and junior Xavier McKinney (DB) were honored as first-team defense. Waddle was a first-team selection on special teams.

Redshirt junior center Landon Dickerson was named to the second-team offense along with juniors Najee Harris (RB), DeVonta Smith (WR), Tua Tagovailoa (QB) and Waddle (WR). Seniors Raekwon Davis (DL) and Trevon Diggs (DB) and redshirt junior linebacker Terrell Lewis were second-team choices on defense.

Waddle was named the SEC Freshman of the Year in 2018.

Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn