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.
randyjet, airline captain: lolololololololol
Reblogged this on Flying Tiger Comics and commented:
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.
The logic of “no criminal conviction, no reason to not support the Clintons”. Like, if you can pay the cost of admission, then you’re qualified to be admitted to Clinton college, Laureate University.
As an airline captain, I flew into LGA many times, and parked on the ramp was Trump’s old 727 on the ramp. Until he got his new 757, he had the plane registered in Bermuda to avoid paying NY state taxes on it. Such a great “American” who would not pay for having a plane registered in the USA. I never failed to point this out to my F/Os and how much a cheapskate and CHEAT he is.
Another BIG difference between Trump U and Walden is that Trump was in violation of many state laws, and bought a free pass for its violations in Texas and FL. They had no license to do business in those states, sold merchandise and paid no sales tax. In Texas that comes to about $300,000. Then when the AG of Texas ran for Guv, Trump was kind enough to contribute $35,000 and let Abbott use his name in fund raising.Not a bad return for Trump. A bad one for Texans. Maybe one can show me a similar tax dodge on the part of Walden and Sylvan? So failing to pay taxes, failing to register to do business in Texas, is nothing to folks here. How about some real violations that Clinton and the U actually did? So much for the FACT that this is not a legal blog any more, but a gossip, slander mill.
randyjet – if you look up the complaints on Walden, it is clear they are a diploma mill churning funds from students they are frustrating by screwing with the system. I do not know why they stipulated to end the suit so fast. Maybe there was a payout? These students sure seemed to have a case.
Clinton Crime Family Services:
I give you $16m & you give me $55m of Americans’ money.
Trump was correct about the San Diego judge being a hater! Not only this but trump showed the Rino Republican leadership being Idiots.
La Raza mean in English “The Race”. La Raza groups are racist hate groups. The judge is reported to likely be an Anchor Baby born to illegal Mexicans. And it turn out this possible Anchor Baby is also a member in some of these Racist La Raza hate groups that are much like the KKK thus needs to step down from this case and maybe step down from being a judge.
(“Please note, the San Diego Lawyers Association is not affiliated with the National La Raza Council,” the president of the SDLRLA, Luis O. Osuna, told The Daily Caller in a statement. However, this link is not the only connection between the SDLRLA and the National Council of La Raza. The San Diego previously publicized a La Raza announcement in 2012 about gay marriage.
The SDLRLA is also an affiliate of the Hispanic National Bar Association. The former president of this group, Rafael Santiago, was on the board of the National Council of La Raza. La Raza views itself as a non-radical Latino advocacy group, but Hispanic civil rights leader Cesar Chavez called the movement “anti-gringo.”
“I hear more and more Mexicans talking about la raza—to build up their pride, you know,” Chavez said, according to a 1969 New Yorker profile. “Some people don’t look at it as racism, but when you say ‘la raza,’ you are saying an anti-gringo thing, and it won’t stop there.” )
http://dailycaller.com/2016/06/06/meet-the-pro-illegal-immigrant-groups-the-la-raza-lawyers-of-san-diego-consider-part-of-their-community/
http://dailycaller.com/2016/06/01/judge-presiding-over-trump-university-case-is-member-of-la-raza-lawyers-group/
Oops… you did post my first Comment. Sorry… and thank you.
“Duplicate comment by me…” Not true… maybe you just didn’t like what I said (?).
As is true with many blogs, the members of the choir love the music.
Thanks to Darren for showing us all how this is another FAKE “scandal” Walden has now changed its name to Clinton U in his blogs. That is called LYING by most folks, but when it comes to Clintons, lying is their standard method. It seems that folks here cannot do a simple thing like do the kids games of find the differences in the comic section. So to assist the immature, I will do it for you. First off Trump U is the ACTUAL name of Trumps fake U and he was and is the sole beneficiary and operator responsible for it. Clinton’s name is NOT on it, nor was it established by him. Trump U is out of business, Walden is not. Trump U is facing an actual trial, while Walden is not. Walden is not the ONLY school to get funding from the State Dept, and most couples in DC have spouses who also have other jobs that do business with agencies. Then there is the problem that if Clinton is to be held responsible for any wrong things or errors on Walden’s part, then you will have to sue the car salesman for defects in all the cars that he sold too. Once again, I have YET to see ANY allegations of illegal activity,or any laws that were broken. But of course, there was nothing to the Whitewater “scandal’ either. Starr who has now been found to ignore or countenance a cover-up of actual RAPE spent $63 million to find out Clinton has consensual sex with women other than his wife. Only a deranged person could say that those two things are equivalent.
Then we have the fact that nobody here as asked for the impeachment of justice Thomas for committing perjury multiple times on his financial forms and forgetting nearly a quarter of a million dollars his wife earned from a plaintiff in a case before the SCOTUS. So if perjury in a civil suit is enough for impeachment, then lying on Federal forms related to ones OFFICIAL duties is certainly justified. I had no problem with Turley not doing it since he may have to go before that judge, but I think that our Clinton haters need to get their courage up and try and live by their own professed values. How about it?
https://pbs.twimg.com/media/CkcYdpkUoAIvpUR.jpg
Anyone else think it’s kind of smelly that Bill’s payout is exactly 30% of the State Dept funding?
How fun! My own taxes going toward my own victimization!
“There are distinctions to draw between the two stories, but the virtual radio silence on the Clinton/Laureate story is surprising.”
Surprising? Seriously? The only thing surprising here is that you are surprised by “radio silence” on a story that would make the Clintons look bad.
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Trump is clearly a Zionist puppet
http://www.veteranstoday.com/2016/05/30/trump-is-clearly-a-zionist-puppet/
http://www.veteranstoday.com/wp-content/uploads/2016/05/super-zionist-trump-640×360.jpg