Campus Talk: For-profit college ordered to pay $95 million to settle whistleblower complaint

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FOR-PROFIT COLLEGE ORDERED TO PAY $95 MILLION TO SETTLE WHISTLEBLOWER COMPLAINT: Education Management Corp., a Pittsburgh-based operator of for-profit educational institutions, has agreed to pay more than more than $95 million to settle an eight-year False Claims Act whistleblower lawsuit, the largest settlement ever in an FCA suit involving the U.S. Department of Education. The settlement stems from a complaint by former EMC employees alleging widespread violations of the Incentive Compensation Ban, which Congress passed in 1992 to safeguard against over-aggressive recruitment practices by the for-profit college industry.

Separately, the for-profit education giant also reached agreements with Arkansas Attorney General Leslie Rutledge and 38 other state attorneys general and the District of Columbia to end state-level investigations into its recruiting practices. Education Management Corporation provides post-secondary education in North America through four education systems — The Art Institutes, Argosy University, Brown Mackie Colleges, and South University – totaling 110 locations in 32 U.S. states and Canada.

UAPB RECEIVES $600,000 FOR USDA FOOD, AGRI SCIENCE PROGRAMS: The University of Arkansas at Pine Bluff was one of 53 historically black land-grant colleges and universities to receive a total of more than $18 million to support research, teaching, and extension activities from the U.S. Department of Agriculture’s (USDA) National Institute of Food and Agriculture NIFA), Agriculture Secretary Tom Vilsack said Monday (Nov. 16).

OBAMA ADMINISTRATION SELECTS FINALISTS FOR $113 MILLION INNOVATION INVESTING COMPETITION: The U.S. Department of Education recently chose the 13 highest-rated applications for its $113 million Investing in Innovation (i3) 2015 competition. These 13 organizations — selected from more than 400 applications — will secure private sector matching funds by December 2015, and formalize their awards as i3 grantees. Through these projects, i3 will support local efforts to start or expand evidence-based programs that can transform the academic trajectory of students, educators and their schools.

CHRONICLE OF HIGHER EDUCATION: STUDENT FEES FUNDING SPORTS ARMS RACE – In the past five years, public universities pumped more than $10.3 billion into mandatory student fees and other subsidies into their sports programs, according to an examination by The Chronicle of Higher Education and The Huffington Post. The review included an inflation-adjusted analysis of financial reports provided to the NCAA by 201 public universities competing in Division I, information that was obtained through public-records requests. The average athletic subsidy that these colleges and their students have paid to their athletic departments increased 16% during that time. Student fees, which accounted for nearly half of all subsidies, increased by 10%. To view the report, click here.