Surviving in the New Economic Reality

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Surviving in the New Economic Reality
Roger J. Williams, Executive Director
ACCET November 2009
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Where Have We been . . .
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• Scandals/Newspaper Stories/Congressional
  Hearings
• (aftermath of the 80s and early 90s)
• Exposures
• false advertising, low standards, low completion
  rates, no jobs and high default rates.

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Actions

• 1992 HEA scrutiny of accrediting agencies
• 1998 HEA measurable outcomes for vocational
  certificate programs

Issues

• national agencies/proprietary sector revise
  standards, policies and procedures emphasizing
  outcome measures/monitoring
• independent of trade associations

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Where We Are Today . . .
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• Increased credibility/muted newspaper
  stories/congressional hearings/active voice
• Exposure
• aggressive sales and incentive payments
• rising default rates

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Actions

• 2008 HEOA Negotiated Rulemaking (spring
  2009)
• regional accreditation/traditionals on
  defense
• national accreditation/proprietaries on
  offense

Issues

• student achievement changes to
  recognition
• few revisions for national accreditation
• transfer of credit minimal progress
• teach-out plans mandated
• due process/appeals the obvious required
  but cluttered with new role of appeals panels
• monitoring growth agencies required to
  collect/evaluate annual headcount

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Where Does Our Future Take Us . . .
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• Opportunity/Growth/Shooting Ourselves in the
  Foot
• Exposure
• aggressive sales and rapid growth beyond
  capacity and job market opportunities
• default rates climbing

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Actions

• HEOA Accreditation Regulations effective July
  1, 2010
• New NegReg issues safe harbors definition
  of credit hour contractual agreements SAP all
  under scrutiny

Issues

• Modulating growth to match job market
  opportunities?
• Completion rate emphasis potential risk?
• Default rates direct correlation to drop outs
• Focus on long-term success of proprietary
  education flexible, adaptive, results
  oriented, cost and time effective

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Questions / discussion . . .