While largely ignored by the media, the Clintons have their own university scandal. Donald Trump has been rightfully criticized and sued over his defunct Trump University. There is ample support for claiming that the Trump University was fraudulent in its advertisements and operations. However, the national media has been accused of again sidestepping a scandal involving the Clintons that involves the same type of fraud allegations. The scandal involves a dubious Laureate Education for-profit online college (Walden) and entails many of the common elements with other Clinton scandals: huge sums given to the Clintons and questions of conflicts with Hillary Clinton during her time as Secretary of State. There are distinctions to draw between the two stories, but the virtual radio silence on the Clinton/Laureate story is surprising. [I have updated the original column with some additional thoughts, links, and clarifications for readers].
I have long been a critic of many online courses, though I am increasingly in the minority even on my faculty. However, the rise of online courses has allowed for an increase in dubious pitches and practices that prey upon people who cannot afford or attend a traditional academic institution. I should also reveal a general opposition to for-profit universities, a view shared by many teachers and experts. While there are some good for-profit programs from student camps to specialized training courses, Laureate is a massive, mega-corporation that is often criticized for its impact on education. As companies maximize profits, students often become a mere cost of doing business. The rate of default has been higher at such for-profit universities and less than half of students at for-profit schools actually finish such programs accordingly to Brookings. Laureate is often cited as the leader in reducing education to a commodity in a mass for-profit enterprise. The company has made huge profits and is worth over $4 billion.
Laureate Education was sued over its Walden University Online offering, which some alleged worked like a scam designed to bilk students of tens of thousands of dollars for degrees. Students alleged that they were repeatedly delayed and given added costs as they tried to secure degrees, leaving them deeply in debt. Laureate itself has been criticized for “turbocharging” admissions while allowing standards to fall and shortchanging education.
The respected Inside Higher Education reported that Laureate Education paid Bill Clinton an obscene $16.5 million between 2010 and 2014 to serve as an honorary chancellor for Laureate International Universities. Various news outlets said that neither Clinton nor Laureate were forthcoming on how much he was paid for the controversial association.
Bill Clinton worked as the “honorary chancellor” which sounds a bit like the group’s pitchman. He gave speeches in various countries and was heavily touted by the for-profit company to attract students. The size of this payment (which has been widely reported) raises obvious concerns as to what the company was seeking to achieve and whether Laureate received any benefit from the association with the State Department given its massive international operations.
Various sites have reported that the State Department funneled $55 million in grants during Hillary Clinton’s tenure to groups associated with Laureate’s founder. That would seem a pretty major story but virtually no mainstream media outlet has reported it while running hundreds of stories on the Trump University scandal. The stories on the grants do not name Laureate directly. Accordingly, the company might have not received direct grants (my first column did not make that clear and, in fairness to Laureate, there is no evidence of a quid pro quo arrangement or even direct grants). However, there are references to the International Youth Federation (connected to Laureate chairman Douglas Becker) as receiving USAID funding. Becker, who reportedly did not graduate college, is a controversial figure and the Washington Post wrote that “Becker’s peers in the education industry paint him as a tireless promoter, skilled at pitching Laureate to investors and persuading universities to sell to him.” Becker is reportedly a major donor to the Clintons and the Clinton Foundation.
The Wall Street Journal reported that Laureate was able to “skirt” regulations on reporting “gainful employment” due to its large number of schools and students outside of the country who do not receive federal aid. The Journal noted “[o]nly 31% of students who enroll at another Laureate school, Santa Fe University of Art and Design, graduate. After 10 years, a mere 58% earn more than Americans with a high school diploma.”
Clinton resigned from his post just before his wife declared her candidacy but praised the company for producing high quality education. Yet, MarketWatch reported “five out of its six U.S. campuses are on a list of 544 schools the Department of Education is monitoring over concerns about shaky finances or regulatory compliance.”
Indeed, Laureate has come up in the Clinton email scandal. In her first year as Secretary of State, Clinton is quoted as directly asking that Laureate be included in a high-profile policy dinner — just months before the lucrative contract was given to Bill Clinton. Hillary Clinton later references “Laureate Universities, started by Doug Becker who Bill likes a lot.”
Of course, there is a good reason why Clinton would ask for a more inclusive listing since “It’s a for-profit model that should be represented.” Even though most teachers (including the unions supporting Clinton) tend to be opposed to such for-profit companies, there is no denying that this model is on the rise. Later, Clinton called for a crackdown on for-profit companies but was criticized for the former association with Laureate.
There was even a class action — like the Trump University scandal. Travis et al v. Walden University LLC, was filed in U.S. District Court in the District of Maryland but dismissed in 2015. It is not clear why it was dismissed. However, the size of the contract to Clinton, the grants from State and the complaints over alleged fraud should warrant a modicum of attention to the controversy. The controversy has many of the familiar complaints over fraudulent online programs that take advantage of hard working people.
As an academic, I find both Trump University and Laureate to be deeply troubling stories. Yet, only one has been pursued by the media to any significant degree. I am not suggesting that Laureate as a whole is fraudulent. It clearly is a large for-profit educational company that has far more to show for its work than Trump University. Indeed, this is a huge global company with tremendous financial assets and profits. Moreover, there are distinctions that can be drawn with a university like Trump that is based entirely on the presumptive nominee and his promises in advertising. However, the money given to the Clintons, the involvement of the State Department, and the claims of fraud make this an obviously significant story in my view. The ridiculous amount of money given to Clinton alone raises legitimate questions. This is a company that was expanding exponentially in foreign countries. The association with Clinton was obviously greatly desired by the company. The question is whether the association with the Clintons resulted in any favorable treatment for the company or its affiliates.
Update: Walden University President Jonathan Kaplan was kind enough to respond to my query for a comment to this story. He maintains that Walden has been misrepresented in terms of its program and success with students. He noted:
Walden University is accredited by the Higher Learning Commission, and was founded in 1970. We are committed to delivering quality degree programs and to focusing on student outcomes. More than 80% of our students are enrolled in masters or doctoral programs. Walden has programmatic and professional accreditations in key areas serving the public good such as social work, teacher education, mental health counseling, nursing, and more.
Walden University takes its financial aid responsibilities very seriously and has worked hard over many years to be good stewards of federal financial aid. This is demonstrated by our three-year cohort default rate of 6.8%, which is well below the national average of 11.8%, including all nonprofit and for-profit institutions.
Additionally, we have achieved a rigorous form of certification for social responsibility through Laureate Education and Walden University becoming Certified B Corporations® in 2015.
Walden University is a part of the Laureate International University Network. We are proud of our association with President Clinton and his role as honorary chancellor at Laureate from 2010 to 2015. It is unfortunate that this association has now drawn us into a political debate.
I should further note that Laureate has claimed a higher than average success yet with its students and currently has almost one million students in its various schools around the world.
Zionist Moron vs. Zionist Moron
Israeli Sell-Out Donald Trump to deliver speech on Zionist Stooges Bill & Hillary Clinton
Clinton IT Official Confirms Immunity Agreement in Court Filing
“..Mr. Pagliano and the DOJ entered into an agreement granting Mr. Pagliano limited “use” and “derivative use” immunity consistent with 18 U.S.C. § 6001 et seq. for that testimony and other testimony offered in connection with the same investigation. In response to the Court’s Order, Mr. Pagliano has today filed copies of his use immunity agreements with the Government, with a Motion asking the Court to maintain those documents ex parte and under seal.”
http://www.judicialwatch.org/press-room/press-releases/clinton-official-confirms-immunity-agreement-court-filing/
Why would the media largely ignore this news story?
I heard about Bill’s involvement in these kinds of “education” organizations. I don’t think Laureate is the only one. I’ve been wondering since the drumbeat against Trump University began how long it would take for the Republicans to bring this up and then whether or not the corporate media would actually report on it. It appears they are now so fully invested in a Clinton win they won’t report on this just as they’ve also apparently now decided to maintain silence on the home brew server scandal. I am in no way a supporter of Trump but the complete abandonment by the press of any pretense of neutrality is, in my view, very corrosive of our democracy. They managed to put the lid on the Sanders campaign via a combination of refusing the cover Sanders for most of the campaign and by constantly portraying his campaign as a lost cause from day one. Can they now shape public opinion to the point where they can install Clinton despite her many scandals (not even including the partisan witch hunts the Republicans have manufactured)? This is why our outdated two party system is now a danger to the long term health of the republic. The elites have decided that it is not in their best interest to provide voters with any real choice. How can the outcome, regardless of the winner, be anything but catastrophic?
Paul C. Schulte…..you beat me to the punch by 2 minutes.
Tom – timing is everything. 😉
Paul C. Schiulte…I appealed your 2 minute lead on me on the posts.
Note that it now shows you beat me by only 1 minute.
I’ve seen timestamps change a bit before.
Tom – did not realize how important it was to you. You can have first place if you want. 🙂
Paul Schulte
….I was voted “least likely to succeed.”
Spent most of my life trying to live up (or down) to that honor. 😊
Paul C. Schulte…in addition to being petty, I’m competitive as well.😊
Tom – you must have made lots of friends in school. 😉 Voted Most Popular?
Gary T.- I don’t know the wording of the immunity agreement, or the scope of that agreement, but my guess is that ut is not “blanket immunity”.
That is, he may be protected legally from legal consequences relating to his role in setting up the server, managing or obscuring emails, etc.
But if he revealed something outside of the scope of the immunity agree…..something that was not covered…..he could face charges on other issues that might come up in his statements/ testimony.
Anyway, that’s how I understand his situation.
BamBam:
From what I understand, if you are given immunity in a case to testify, you cannot plead the fifth without it being contempt of court.
The fifth amendment is only used to protect oneself from self incrimination; if there is an immunity agreement, then there is no self-incrimination available and person can be compelled to testify.
Gary – if he is given limited immunity, it cannot be used against him and they have to develop independent evidence. However, he is criminally liable for all other depositions.
RB, those are indeed crimes, but they came after W was in office. We have a gigantic focus point in time and history when we can possibly stop it from going any farther. Maybe the largest test of our government relative to the history of the world. Unless you can’t separate yourself from the A-Team and B-Team illusion. It’s time for everyone to just say “no.” Does Hillary play the violin?
In my opinion, anyone that votes for Hillary Clinton is un-American. Treason starts with lies, hidden agenda’s, superior indulgence (thinking that they are better then you) and breaking their Oath of Office. What ever happened to morals, truth and ethics?
Torture, false detention and warrantless wiretapping are still federal crimes, when are the Bush officials going to meet justice?
Even though they did just that on warrantless wiretapping, Congress is prohibited from passing ex post facto laws under the U.S. Constitution.
How can we a prosecute Clinton or Trump until we deal with the Bush felonies?
I guess we all better be on the lookout for the silent black helicopters…
The Clintons should open a university on how to get rich after leaving office. Of course, being Democrats, the IRS will NOT audit them, so everything is okay.
More Hillary closet junk: Clinton for-profit education scandal dwarfs Trump U…..By $4 Billion dollars.
The company, created in 2004 on the base of the tutoring chain Sylvan Learning Centers, already owned 75 schools in 30 countries and was poised for a massive expansion as Bill Clinton’s name drew top-name, left-leaning investors, including George Soros, Henry Kravis of Wall Street investment banking firm KKR and Paul Allen of Microsoft.
For-profit college built on student debt
The Washington Post reported that before the day was over, the telemarketers would make almost 1,300 calls, induced by bonuses to salespeople capable of persuading at least 250 students to take the entrance exam for IMBR. They offer what the university’s owner, Douglas Becker, promises in his Baltimore office 5,000 miles away will be an opportunity of a lifetime: “Be part of Laureate Network, the biggest university network in the world.”
The newspaper further noted that by the time Laureate Education was taken private in 2007, in a $3.8 billion management leveraged buy-out, the company with $4 billion in annual revenue and 800,000 students could lay claim to being the largest U.S. for-profit college then in operation.
But, as Forbes pointed out in its July 12, 2015, story, Laureate Education’s Walden University was built by inducing prospective students to incur massive tuition debt to attend a school with no academic reputation and virtually no standards for admission other than ability to pay.
Bill Clinton’s shell company
A document revealed Bill Clinton was being paid through a “shell corporation” pass-through account, WJC LLC, designed to keep consulting fees paid Clinton off the books of the Clinton Foundation. It allowed Clinton to avoid disclosing the existence of the shell company even to the IRS, as long as compensation payments to him were withdrawn as soon as they were deposited, ensuring the account always showed a zero balance.
slohrss29 – “I think it’s amazing that Pete Townsend’s “Won’t Get Fooled Again” may be the most accurate analysis of civilization ever. There seems to be no law remaining to be broken that can stop them.”
I thought the same thing with our current community organizer. Watching the libs be disappointed with him always made me say, “Meet the new boss, same as the old boss”.
There’s an obvious and glaring difference between the situation involving Trump and that which surrounds the Clintons, and that is FEAR. While disgruntled, former students, from Trump University, who believe that they have been issued worthless degrees by the school, freely and enthusiastically pursue their claims against Trump, no one, except those with a discernible death wish, are willing to testify against the Clintons. That’s the bottom line. Even Pagliano, who was given immunity from prosecution, to explain what happened with Hillary’s email fiasco, has revealed that he would plead the Fifth. Immunity? Immunity from what? The goon squads sent by the Clintons? There is no immunity from that, except total silence. I hope that the Donald and his team rip Hillary a new one with the information about this university.
Possible L & O episode?
I think it stinks but have you filed a FOIA to find out why State paid $ 55 million to Laureate and what was this for? Wow!
Thank you for posting a very pertinent story. I find a good many things on this blog that don’t get published elsewhere.
I think it’s amazing that Pete Townsend’s “Won’t Get Fooled Again” may be the most accurate analysis of civilization ever. There seems to be no law remaining to be broken that can stop them.
I think you see why people trust the MSM as much as they trust Hillary. In case folks haven’t noticed, Trump hits the MSM almost as hard as he does Hillary. Everyone knows the MSM is in the tank for Hillary just as they are for Obama all Dems. The influence of the duopoly and the MSM are dying, that’s the story of this election.
Trump University was one of many ubiquitous get-rich-quick-no-money-down-use-other-people’s-money-Real Estate “schools”. It sounds like the Clinton-State-Department-obscene-payment scheme was more unique and for that reason deserves more attention.