In the aftermath of the scathing GAO report (and accompanying video) about recruiting at for-profit colleges, Kaplan Inc. has decided to stop enrolling students two of its college campuses. According to an article by Goldie Blumenstyk in the Chronicle of Higher Education:
Days after recruiting abuses at two of its campuses were highlighted at a Congressional hearing, Kaplan Inc. has taken the unusual step of suspending enrollment of new students at both.
Melissa Mack, a Kaplan spokeswoman, confirmed that the suspensions had been put into effect at the Kaplan College campuses in Pembroke Pines, Fla., and Riverside, Calif. Those actions “are contrary to our standards and values in every way,” said Ms. Mack.
At the same time, however, the Blumenstyk article pointed out that for-profit education makes up about 40 percent of the $2.34-billion six-month revenues for the Washington Post Company, which owns Kaplan.
“The higher-education division’s… operating income accounted for nearly 80 percent of the company’s overall operating income for the period,” according to Blumenstyk. “The company’s flagship property, the Washington Post newspaper, lost about $28-million during the same period.”