North Carolina opens investigation into for-profit law school Presented by Comcast

With help from Caitlin Emma and Benjamin Wermund

SCOOP: NORTH CAROLINA IS INVESTIGATING FOR-PROFIT LAW SCHOOL AMID FEDERAL BATTLE: North Carolina Attorney General Josh Stein has opened an investigation into Charlotte School of Law, the for-profit institution that the Obama administration cut off from federal funding last December. Laura Brewer, a spokeswoman for Stein, confirmed in an email to Morning Education that the office “is investigating the school under the state’s civil consumer protection laws and is very concerned about the current situation at the school.” The AG’s investigation, and a separate review by state regulators, come as the embattled law school is urging Education Secretary Betsy DeVos to quickly reinstate its access to millions of dollars each year in federal student loans. The saga over the school’s future is turning into one of the first high-profile tests of how the Trump administration will approach for-profit colleges.


— The North Carolina Attorney General is also raising concerns about the potential closure of Charlotte School of Law — which has lost more than half of its students since last year. The timing of the school’s possible closure might limit students’ ability to obtain a federal “closed school discharge” of their student loans. Education Department rules allow students who are attending a college that suddenly collapses to have their federal loans wiped out. That protection also extends to students who withdrew from the school in the 120 days leading up to its closure, a clock that is now ticking for the hundreds of students who fled Charlotte School of Law in late December and January.

— Stein’s office wrote in a letter to DeVos earlier this month that Charlotte School of Law and its owners and investors have a “vested interest in continuing to operate to decrease their potential liability” for the cost of loan discharges. Even if Charlotte School of Law closes, its parent company InfiLaw — which owns two other for-profit law schools — would still be on the hook for potentially millions of dollars worth of loan discharges. The letter from Stein’s office, which was obtained by POLITICO, urges DeVos to “not allow any self-serving delay” by the school in closing and to expand the 120-day window for closed school discharges.

— Officials at the Charlotte School of Law previously said they were betting on the Trump administration to take a friendlier approach to their school. And the school’s lobbying effort to restore its access to federal loans appears to be having some success. The Education Department — only several months after finding that the school “substantially misrepresented” the nature of its programs — has now, under DeVos, invited the school to re-apply for federal funding.

— The school filed an application for reinstatement in the federal loan program on March 29 “at the direct suggestion” of a top department official, according to a letter from the school president Chidi Ogene that was obtained by POLITICO. Ogene wrote that the school had agreed to enrollment caps and increased admissions and asked DeVos to give the school’s application “all possible priority.” He rejected the North Carolina Attorney General’s concerns about closure as “premature and improper.” Spokespeople for both the Charlotte School of Law and InfiLaw did not respond to requests for comment.

— State regulators are also reviewing Charlotte School of Law: The University of North Carolina system, which regulates for-profit colleges in the state, has also opened a review of the school’s license to operate in North Carolina. UNC President Margaret Spellings — a former secretary of education during the George W. Bush administration — will ultimately make a recommendation on the law school’s license to the UNC Board of Governors. The board next convenes on May 19, though an agenda hasn’t yet been published for that meeting.

GOOD MONDAY MORNING AND WELCOME TO MORNING EDUCATION. The highlight of my weekend was checking out the distillation tanks and oak barrels at District Distilling Co., which is a pretty great addition to U Street. Their “Backroom Bourbon” was my favorite. … Drop me a line with your tips and feedback: [email protected] or @ mstratford. Share event listings: [email protected]. And follow us on Twitter: @Morning_Edu and @POLITICOPro.

EDUCATION DEPARTMENT SEEKS TRAINING ON HOW TO SHRINK ITS RANKS: As the Trump administration proposes a 13-percent reduction to the Education Department’s $68 billion budget for next fiscal year, the agency is turning to some outside experts for training on how to go about laying off employees. Federal records show that the department has purchased more than $28,000 worth of training related to how to plan and conduct a “reduction in force” action – which is bureaucratic parlance for laying off employees.

— The training sessions will be conducted by Graduate School USA, which offers a wide range of classes to employees at federal agencies. Federal reduction in force rules “determine whether an employee keeps his or her present position, or whether the employee has a right to a different position,” according to the Office of Personnel Management.

— Trump’s skinny budget called for a $9.2 billion cut in spending at the Education Department, which had more than 3,800 full-time permanent employees at the end fiscal year 2015. Education Secretary Betsy DeVos has previously said she’s looking for areas to cut at the department.

TODAY: TRUMP ADMINISTRATION PROMOTES STEM EDUCATION: President Donald Trump and his daughter, Ivanka Trump, are hosting a video call this morning to congratulate NASA astronaut Peggy Whitson on her record-breaking stint aboard the International Space Station. The Education Department is using the event to highlight STEM education. The department last week released a guide to help state and local officials better use federal funding to support “innovative, equity-focused pre-kindergarten through grade 12 (Pre-K-12) STEM education strategies.” Read more.

COUNTING 19-YEAR-OLDS BOOSTS FAFSA FIGURES BY NEARLY 10 PERCENT: The Education Department last week included 19-year-olds for the first time in its weekly count of high school seniors who have filled out financial aid applications. Advocates for low-income students had long pushed for the inclusion, arguing that many seniors turn 19 before they graduate — and it appears that’s a correct assumption. According to the National College Access Network, adding 19-year-olds, to the mix boosted 2016 FAFSA completion numbers by 9.3 percent. More than 167,000 Free Application for Federal Student Aid forms were completed by 19-year-olds, according to NCAN’s analysis. “These are fairly big swings,” Carrie Warick, the group’s director of policy and advocacy, told Morning Education. Research shows that there's a high correlation between completion of the federal aid application and enrollment in college, which is why so many groups watch FAFSA completion rates closely.

— The addition of 19-year-olds to the mix is something of a mixed blessing for advocates, because it isn't totally clear who is being counted. The government isn't including all 19-year-olds, just those with birthdays before a certain cutoff date that the department has decided is reasonable to estimate they were high school seniors when they filled out the form. That cut-off date hasn't been published. The change will likely obfuscate the impact of taking down a widely used online tool for filling out the form earlier this year. That IRS Data Retrieval Tool, which millions of students use each year to automatically input their income information on the Free Application for Federal Student Aid, was suspended over concerns that identity thieves were using it to access student family tax information. It will remain down until the fall, the Education Department has said. Benjamin Wermund has more on the change.

— Despite that, the figures appear positive for groups like NCAN that are seeking to boost completion rates. The current total of FAFSA forms filed this year by high schools seniors — now including 19-year-olds — is already 96 percent of the way to the total forms submitted by June 30 last year, so it looks like 2017 will probably see an increase.

LETTER CALLS FOR LEVEL TEACHER PREP FUNDING: Twenty-four House Democrats and one Republican earlier this month urged House appropriators to provide at least level funding for Teacher Quality Partnership grants, pegged at about $43 million. The grants are aimed at improving and reforming teacher preparation. In a letter, the lawmakers wrote that the funds “support intensive partnerships between high-need school districts, high-need public schools, institutions of higher education, and other eligible entities to prepare profession-ready, highly effective teachers.” Thanks to the grants, the lawmakers say schools and school districts “are seeing improvements in the quality and retention of their teachers and in the quality of their students’ learning experiences and achievements.” Rep. Rodney Davis of Illinois was the only Republican to sign the letter. Read the letter.

LATEST LIST OF COLLEGES UNDER SCRUTINY: The Education Department last week released for the first time during the Trump administration the quarterly list of colleges facing extra scrutiny from department regulators. As of March 1, the department reported 545 colleges and universities facing “heightened cash monitoring,” levels 1 or 2 — which means the institutions face some restrictions on their access to federal student aid. The new figure is a slight increase from December, when there were 538 institutions on the list. See the full data here.

CALENDAR

— President Donald Trump, Ivanka Trump and NASA Astronaut Kate Rubins participate in an Earth-to-space video conference, beginning at 10 a.m., "to congratulate NASA astronaut Peggy Whitson for her record-breaking stay aboard the International Space Station," and to promote women in science, technology, engineering and mathematics. Livestream here.

SYLLABUS

— Kristina Johnson, a former undersecretary of energy during the Obama administration, will be appointed as chancellor of the State University of New York: The New York Times.

— National Labor Relations Board rules that resident advisers at colleges may unionize: Inside Higher Ed.

— Scientists, feeling under siege, march against Trump policies: The New York Times.

— Former President Barack Obama meets with at-risk youth in Chicago ahead of first major post-presidency speech: The Associated Press.

Fire and Rain. Follow the Pro Education team. @ caitlinzemma ( [email protected]), @ khefling ( [email protected]), @ mstratford ( [email protected]) and @BenjaminEW ( [email protected]).

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