Beyond Profit

Keiser University, the controversial for-profit college that in October tried to sue an administrator at a Florida state college for “colluding with opponents of for-profit colleges in a targeted smear campaign against the school” will now become a nonprofit institution.

According to a piece by Kelly Field in the Chronicle of Higher Education:

The sale of the university to Everglades College Inc., a nonprofit entity that operates Everglades University, was finalized this week, Keiser’s chancellor, Arthur Keiser, confirmed in an interview today. He would not disclose the sale price.

Mr. Keiser said the sale of Keiser University to the nonprofit corporation was designed to ensure the university’s survival after his death. But he hinted that the increased pressure on the for-profit sector also played a role in the decision to convert.

Arthur Keiser was very involved in opposing the Department of Education’s proposed gainful employment rule, which render for-profit schools ineligible for federal financial aid if average graduates need to spend more than 8 percent of starting salaries to pay off student loans. According to the article, Keiser said gainful employment was “bad policy ‘regardless of the tax status of the institution.’”

One wonders if he’ll be quite so concerned about “bad policy” moving forward.

Daniel Luzer

Daniel Luzer is the news editor at Governing Magazine and former web editor of the Washington Monthly. Find him on Twitter: @Daniel_Luzer