For-profit Kaplan using state budget crisis in PR campaign

When Kaplan University announced a partnership with California community colleges to offer Kaplan courses at a discounted rate, the for-profit college giant made no reference to the state's fiscal crisis in its carefully worded press release.

Flickr photo by Konstantin Sutyagin

You had to read between the lines to get the message that Kaplan was capitalizing on the state's inability to offer public college students some of the courses they needed, when they needed them. 

Under that deal, students got the chance to take a Kaplan class for about 10 times the price of a community college class, instead of the full cost of 18 times the price of a community college class.

Now, Kaplan is announcing new scholarships aimed at California students. And now the state's budget crunch boldly plays into the university's PR campaign.

"As a California student, you may be aware that higher education classes and degree programs are being cut due to state budget concerns," the scholarship site reads. "At Kaplan University, we don’t think anyone should have to delay or lose out on their education. That is why we are offering two new scholarship programs to California residents who are ready to take the next step toward pursuing their educational goals at Kaplan University."

Kaplan's press release describes the scholarships as one more Kaplan life raft for California college students thrashing about in the rough waters of the cash-strapped state systems. Specifically, it cites the recent agreement with the community colleges.

“Kaplan University is employing a number of innovative solutions to help California students affected by the budget crisis,” said Gregory Marino, president of the Kaplan University Group. “Our new scholarship programs are designed to provide greater access to higher education and to help California students fulfill their academic goals.”

The question is whether Kaplan's offering is such a great alternative, said the Institute for College Access & Success' Debbie Cochrane.

"I think the community colleges know there's some truth behind it. Classes are being cut. Students are being shortchanged. I think where people might have an issue is with the idea that Kaplan is a better deal," she said.

Community college students who take advantage of the previously announced Kaplan partnership don't appear to be eligible for the new scholarships. The Kaplan scholarships require that students already have earned associates' degrees, but students taking discounted Kaplan courses are likely still working towards those degrees.

Then there's the price. Kaplan is offering California students who enroll in its bachelor's or master's degree programs up to $1,250 per term, with the total award not to exceed $5,000. That's about a 7 percent discount off the price of a bachelor's degree in criminal justice from Kaplan, for example. The program costs $66,780 for tuition alone.

And finally, it's not clear whether students can transfer Kaplan credits to a UC or CSU. For-profit colleges have fought to get more nonprofit universities to accept their credits.

Cochrane said Kaplan appears to be trying to funnel students into its own bachelor's programs, raising questions about the community colleges' decision to make a deal with the company.

"You have to consider the broader context of this partnership," she said. "Not only is it (Kaplan's pitch) bold, but the chancellor's office has emboldened them."

Filed under: Higher Ed, Daily Report

Comments

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Allan Hunter's picture
Good for Kaplan! Why would anyone be upset that students are being offered opportunities and choice? Is "for-profit" becoming the new boogieman in this country? No one is being forced to take classes anywhere, they're just being offered the opportunity to take classes where they choose, if they choose. This is a good thing.
Franklin1977's picture
It sounds to me like Kaplan is offering (key word) something that students are losing elsewhere, not forcing students to choose anything. This title is misleading, to say the least. If students don't like it and don't want to pay they don't have to enroll. Painting Kaplan is some sort of villain here doesn't make any sense, unless you are of the mindset that somehow education should be magically free, in which case you're crazy.
libertyatlarge's picture
Let me get this straight, the government is going broke and a private company steps up to fill the gap the government has left and people are complaining about the price? This quote is hilarious: "I think the community colleges know there's some truth behind it. Classes are being cut. Students are being shortchanged. I think where people might have an issue is with the idea that Kaplan is a better deal." So not getting what you want is a better deal than having to pay the fair market price for what you want? The story here is how much government subsidizing perverts the price of things at our expense, not that a company is filling the void left by government failure.
tojo's picture
So the Community Colleges think they are providing their students opportunity? Kaplan's "Trojan Horse" is nothing but a strategic move on the California market share and the Community Colleges unwittingly walked right into it. Or did they? What is the system getting for this agreement? Why align the systems 'prestige' with a private proprietary school whose reputations are known as diploma mills? Kaplan has discounted courses to community college students and will then transition them to their BA programs which don't articulate to CSU, UC or Independent Colleges or Universities. Who are they kidding? All Kaplan is after is the $5000 Pell grants and thousands of dollars of subsidized federal loans these students will bring with them.

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