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Surviving in the New Economic Reality Roger J. Williams, Executive Director ACCET ACCET November 2009 Roger J. Williams, Executive Director ACCET ACCET.

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Presentation on theme: "Surviving in the New Economic Reality Roger J. Williams, Executive Director ACCET ACCET November 2009 Roger J. Williams, Executive Director ACCET ACCET."— Presentation transcript:

1 Surviving in the New Economic Reality Roger J. Williams, Executive Director ACCET ACCET November 2009 Roger J. Williams, Executive Director ACCET ACCET November 2009

2 Where Have We been...

3 Scandals/Newspaper Stories/Congressional Hearings Scandals/Newspaper Stories/Congressional Hearings (aftermath of the 80s and early 90s) (aftermath of the 80s and early 90s) Exposures: false advertising, low standards, low completion rates, no jobs and high default rates. false advertising, low standards, low completion rates, no jobs and high default rates. Scandals/Newspaper Stories/Congressional Hearings Scandals/Newspaper Stories/Congressional Hearings (aftermath of the 80s and early 90s) (aftermath of the 80s and early 90s) Exposures: false advertising, low standards, low completion rates, no jobs and high default rates. false advertising, low standards, low completion rates, no jobs and high default rates.

4 1992 HEA: scrutiny of accrediting agencies 1992 HEA: scrutiny of accrediting agencies 1998 HEA: measurable outcomes for vocational certificate programs 1998 HEA: measurable outcomes for vocational certificate programs 1992 HEA: scrutiny of accrediting agencies 1992 HEA: scrutiny of accrediting agencies 1998 HEA: measurable outcomes for vocational certificate programs 1998 HEA: measurable outcomes for vocational certificate programs Actions: Issues: national agencies/proprietary sector revise standards, policies and procedures emphasizing outcome measures/monitoring national agencies/proprietary sector revise standards, policies and procedures emphasizing outcome measures/monitoring independent of trade associations independent of trade associations national agencies/proprietary sector revise standards, policies and procedures emphasizing outcome measures/monitoring national agencies/proprietary sector revise standards, policies and procedures emphasizing outcome measures/monitoring independent of trade associations independent of trade associations

5 Where We Are Today...

6 Increased credibility/muted newspaper stories/congressional hearings/active voice Increased credibility/muted newspaper stories/congressional hearings/active voice Exposure: Exposure: aggressive sales and incentive payments aggressive sales and incentive payments rising default rates rising default rates Increased credibility/muted newspaper stories/congressional hearings/active voice Increased credibility/muted newspaper stories/congressional hearings/active voice Exposure: Exposure: aggressive sales and incentive payments aggressive sales and incentive payments rising default rates rising default rates

7 2008 HEOA: Negotiated Rulemaking (spring 2009) 2008 HEOA: Negotiated Rulemaking (spring 2009) regional accreditation/traditionals on defense regional accreditation/traditionals on defense national accreditation/proprietaries on offense national accreditation/proprietaries on offense 2008 HEOA: Negotiated Rulemaking (spring 2009) 2008 HEOA: Negotiated Rulemaking (spring 2009) regional accreditation/traditionals on defense regional accreditation/traditionals on defense national accreditation/proprietaries on offense national accreditation/proprietaries on offense Actions: Issues: student achievement – changes to recognition student achievement – changes to recognition few revisions for national accreditation few revisions for national accreditation transfer of credit – minimal progress transfer of credit – minimal progress teach-out plans – mandated teach-out plans – mandated due process/appeals – the obvious required but cluttered with new role of appeals panels due process/appeals – the obvious required but cluttered with new role of appeals panels monitoring growth – agencies required to collect/evaluate annual headcount monitoring growth – agencies required to collect/evaluate annual headcount student achievement – changes to recognition student achievement – changes to recognition few revisions for national accreditation few revisions for national accreditation transfer of credit – minimal progress transfer of credit – minimal progress teach-out plans – mandated teach-out plans – mandated due process/appeals – the obvious required but cluttered with new role of appeals panels due process/appeals – the obvious required but cluttered with new role of appeals panels monitoring growth – agencies required to collect/evaluate annual headcount monitoring growth – agencies required to collect/evaluate annual headcount

8 Where Does Our Future Take Us...

9 Opportunity/Growth/Shooting Ourselves in the Foot Opportunity/Growth/Shooting Ourselves in the Foot Exposure: Exposure: aggressive sales and rapid growth beyond capacity and job market opportunities aggressive sales and rapid growth beyond capacity and job market opportunities default rates climbing default rates climbing Opportunity/Growth/Shooting Ourselves in the Foot Opportunity/Growth/Shooting Ourselves in the Foot Exposure: Exposure: aggressive sales and rapid growth beyond capacity and job market opportunities aggressive sales and rapid growth beyond capacity and job market opportunities default rates climbing default rates climbing

10 Issues: Actions: HEOA HEOA Accreditation Regulations effective July 1, 2010 New NegReg issues: safe harbors; definition of credit hour; contractual agreements; SAP all under scrutiny HEOA HEOA Accreditation Regulations effective July 1, 2010 New NegReg issues: safe harbors; definition of credit hour; contractual agreements; SAP all under scrutiny Modulating growth to match job market opportunities? 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 Modulating growth to match job market opportunities? 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

11 Questions / discussion...


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