On the web: http://www.kaplan.com
Kaplan will put you to the test. The Washington Post subsidiary is perhaps best known for its test-preparation publications, which help students prepare for college and graduate school entrance exams, including the SAT, GRE, LSAT, and MCAT. Kaplan offers prep courses at some 600 locations in 30 countries. The bigger story for the company, though, is higher education, which accounts for more than half of its revenues. Kaplan University provides online undergraduate, graduate, and professional (including law) degrees in the US and abroad, primarily through Kaplan University. Kaplan also offers professional development and compliance training for the financial services, real estate, and IT sectors.
Key numbers for fiscal year ending December, 2008:
Chairman and CEO: Andrew S. (Andy) Rosen
CFO: Matthew C. Seelye
CIO: Edward L. Hanapole
The Washington Post Worries About New Rules for KaplanBy JEREMY W. PETERS
The Washington Post Company said on Monday that its reliable profit center, the Kaplan Higher Education division, might come under serious pressure if new federal rules meant to rein in the for-profit college business went into effect.
The Post Company, which has relied more and more in recent years on its Kaplan divisions to finance the news-gathering operations at The Washington Post, cautioned that “a significant number” of its Kaplan schools could either become ineligible to receive government funding or their student enrollments would be limited.
“These rules, if adopted as presently drafted, could have a materially adverse effect on the future results of the company’s higher education division,” the Post Company said in a written statement.
At issue are proposals from the Education Department that would more closely track how many students repay the loans they take out to pay for their coursework at for-profit higher education institutions. The proposed guidelines would, among other things, grant full federal funding only to institutions where 45 percent of former students were repaying the principal on their federal loans; or where graduates had a debt-to-earnings ratio of less than 20 percent of discretionary income or 8 percent of total income.
From those thresholds, the proposed rules suggest a sliding scale for eligibility of federal funds and for determining what if any enrollment restrictions should be placed on the schools.
The proposed guidelines would have a heavy impact on the Kaplan schools. According to the company, the federal government calculated only a 28 percent repayment rate for Kaplan University. The company noted that 18 percent of its revenue came from Kaplan University in 2009.
The Post Company said it would file a brief in opposition to the proposed federal guidelines despite its support for “efforts to limit student debt and ensure the quality of all educational programs.”