Purdue’s controversial deal to buy for-profit Kaplan University gets final OK

WEST LAFAYETTE, Ind. – Purdue President Mitch Daniels said Purdue Global, the rebranded online giant Kaplan University, will be ready to go in April after the university on Monday received the final regulatory approval needed on a novel deal that promises to expand the public university’s reach to a new clientele.

The Higher Learning Commission, which accredits more than 1,000 colleges and universities in 19 states, sent a notice of approval Monday on a deal first announced in April 2017 and quietly in the works at least five months before for that.

The news was greeted with celebration from Daniels and his administration, along with a sense of resignation from faculty members who have collected names on petitions and protested that they were kept in the dark as Purdue moved to buy the for-profit university and convert it into a nonprofit arm of the Purdue system. The deal was widely watched, criticized and praised in higher education circles.

“We are grateful for the Higher Learning Commission’s decision to approve Purdue University’s conversion of Kaplan University to Indiana’s newest public institution of higher education, Purdue Global,” Daniels said in a university release.

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“It opens a new era for our institution, with the opportunity to expand our land-grant mission to millions of adult students around the country,” Daniels said. “That opportunity brings with it the responsibility to provide the highest quality online education, not only to our new adult learners, but to all residential and online Boilermaker students. Starting today, Purdue University hopes to take a leading role in online learning nationally.”

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Daniels was traveling Monday and wasn't immediately available to discuss the situation more.

The Higher Learning Commission trustees – following the approvals for the Purdue-Kaplan deal from the Indiana Commission for Higher Education and the U.S. Department of Education – voted on the Purdue Global accreditation on Feb. 22. The commission generally takes up to three weeks to deliver the results to universities, so the 10-day turnaround was considered swift.

A team that came to Purdue in October had raised a number of concerns about an arrangement in which Purdue planned to make Kaplan a public benefit corporation that is self-sustaining and without need of state support or the same sort of public oversight given a state university.

From the start Daniels has pushed the deal as a way to reach a new, nontraditional student Purdue never could reach on its flagship campus in West Lafayette or at its regional Purdue-Fort Wayne and Purdue-Northwest campuses. He called Purdue Global, ready made with more than 30,000 students, 2,400 faculty members and 15 campuses, a third tier in Purdue’s land grant university mission to educate the masses.

Daniels also has promoted the deal – one that has Purdue paying $1 and leaving much of the technical expertise to Kaplan Higher Education – for how it gives Purdue a leg up in online education after lagging far behind for years.

The peer review team, though, questioned whether the university would be able to keep the Purdue and Purdue Global brands separate and distinct, according to documents uncovered by the Journal & Courier. The team also had doubts about how the arrangement would work with two sets of trustees, including questions about who would hire and fire the president and make ultimate decisions for both schools.

The team also noted what Kaplan folks called “headwinds” in their industry: falling enrollment and “concern from students, parents and public policymakers about certain alleged practices” in the for-profit higher education sector.

But in their decision, the Higher Learning Commission trustees seemed comfortable.

“The HLC Board of Trustees kept the best interests of students front and center throughout, took a thoughtful, rigorous approach and diligently considered all the materials that reviewers assembled and interested parties submitted these past several months,” said Barbara Gellman-Danley, Higher Learning Commission president. “Following this approval, HLC will continue to exercise appropriate oversight to ensure that the innovative approach of this new model fulfills its promise to students.”

Betty Vandenbosch is president of Kaplan University and will be the Purdue Global chancellor, reporting to Daniels from a home campus in Indianapolis.

“We appreciate the Higher Learning Commission’s fast and unequivocal ‘yes,’” Vandenbosch said. “This gives us a chance to move forward promptly with a successful start. We are excited to become part of the Purdue University system and offer working adults a supportive and practical education tailored specifically to them.”

Deb Nichols, an associate professor of human development and family studies, is one of the leaders of a Purdue-Kaplan committee formed by the faculty-heavy University Senate, where skepticism about the deal has run deep since Daniels and Purdue trustees announced the deal after months of talks held in secret to satisfy federal trade regulations. The Senate created the committee to be a conduit between faculty and Daniels’ administration about Purdue Global.

“I have no real sense of the percentage (of faculty) for and against, I just know there were people vocal on both sides,” Nichols said Monday. “My philosophy is let’s figure out how we can be more proactively involved. … The big thing is: What does it look like going forward? What parts fit best with Purdue? That’s where all the really hard work is going to be.”

In May, the University Senate took what amounted to a vote of no-confidence for the deal. More than 300 faculty members signed a petition, sent to the Higher Learning Commission, protesting the deal over concerns of academic freedom and credentials for Kaplan faculty and the potential compromise of Purdue’s degrees and reputation, among others. The questions continued in mid-February, where faculty members and Daniels sparred during a University Senate meeting.

David Sanders, a biology professor and former University Senate chairman, has been outspoken about a deal.

“Now that Purdue’s name is associated with this, faculty are going to try to ensure that this reflects the values of Purdue,” Sanders said. “We want this faculty and these students to have the academic freedom and protections our faculty and students have. Right now, I’m not sure that’s going to happen.”

On Monday, Purdue’s message was that Kaplan’s students would continue their coursework without disruption, other than the promise of getting the Purdue Global name on a diploma.

Vandenbosch said the first term for Purdue Global will start April 18, and students would need to be enrolled at least a week before that. The first Purdue Global diploma could be given to those who were students after April 27, 2017, when the pending deal was first announced, she said.

“In the immediate term, Purdue Global will be teaching the same courses to students, so things will substantially be the same,” Vandenbosch said.

Frank Dooley, a Purdue vice provost, said the university was ready for faculty to step up.

“A large and growing number of Purdue faculty have demonstrated an active interest in working with Purdue Global or with the digital platform it brings,” Dooley said. “All willing and interested faculty are welcome to join this exciting new opportunity in Purdue’s history.”

Reach Dave Bangert at 765-420-5258 or at dbangert@gannett.com. Follow on Twitter: @davebangert.