−Removed: Strategic Education, Inc., a Maryland corporation formerly known as Strayer Education, Inc., is an education services company that seeks to provide the most direct path between learning and employment through post-secondary education offerings, as well as through programs to develop job-ready skills for high-demand markets.
−Removed: The Company conducts its operations primarily through its wholly-owned subsidiaries, Strayer University and Capella University, both accredited post-secondary institutions of higher education located in the United States, as well as Torrens University Australia ("Torrens University"), an accredited post-secondary institution of higher education located in Australia.
−Removed: The Company’s operations also include certain non-degree programs, mainly focused on software and application development, and other vocational and training programs in a variety of fields.
−Removed: The Company generated net revenue of $1.0 billion in 2020.
+Added: Strategic Education, Inc.
+Added: (“SEI,” “we,” “us,” or “our”) is an education services company that provides access to high-quality education through campus-based and online post-secondary education offerings, as well as through programs to develop job-ready skills for high-demand markets.
+Added: We operate primarily through our wholly-owned subsidiaries Strayer University and Capella University, both accredited post-secondary institutions of higher education located in the United States, as well as Torrens University, an accredited post-secondary institution of higher education located in Australia.
+Added: Our operations emphasize relationships through our Education Technology Services segment (formerly called the Alternative Learning segment) with employers to build employee education benefits programs that provide employees with access to affordable and industry relevant training, certificate, and degree programs.
+Added: We generated net revenue of $1.1 billion in 2021.
For more information regarding our revenues, profits, and financial condition, please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements included in this Annual Report on Form 10-K.
−Removed: Acquisition of Torrens University and related assets in Australia and New Zealand
−Removed: On November 3, 2020, we completed the acquisition of Torrens University and related assets in Australia and New Zealand ("ANZ"), pursuant to the sale and purchase agreement dated July 29, 2020 (the "Purchase Agreement").
−Removed: ANZ includes Torrens University, Think Education, and Media Design School, which together provide diversified student curricula to over 19,000 students across five industry verticals, including business, hospitality, health, education, creative technology and design.
−Removed: The Company believes that ANZ represents an attractive portfolio of institutions with a similar focus on innovation, academic outcomes, improved affordability and career advancement as the Company.
−Removed: We also believe that ANZ provides an attractive platform for future growth, driven by Australia’s status as an attractive destination for international students, as well as the potential to use ANZ as a platform for expansion across the ASEAN region.
−Removed: Pursuant to the Purchase Agreement, the aggregate consideration paid was approximately $658.4 million in cash, which reflected the original agreed upon purchase price of $642.7 million, plus a $15.7 million adjustment reflecting an estimated $11.0 million of net cash at close, and an estimated $4.7 million related to higher net working capital.
−Removed: These estimated adjustments are subject to a final true-up of net cash and net working capital, based on the actual closing accounts to be finalized by both parties.
−Removed: The aggregate consideration paid in the transaction was funded using cash on hand and borrowings under our revolving credit facility.
−Removed: Acquisition of Capella Education Company
−Removed: On August 1, 2018, we completed our merger with Capella Education Company (“CEC”) pursuant to a merger agreement dated October 29, 2017.
−Removed: The merger solidifies our position as a national leader in education innovation, and provides scale that will enable greater investment in improving student academic and career outcomes while maintaining our focus on affordability.
+Added: Acquisition of Torrens University and associated assets in Australia and New Zealand
+Added: On November 3, 2020, we completed the acquisition of Torrens University and associated assets in Australia and New Zealand (“ANZ”), pursuant to the sale and purchase agreement dated July 29, 2020.
+Added: ANZ includes Torrens University Australia, Think Education, and Media Design School, which together provide diversified student curricula to approximately 19,000 students across five industry verticals, including business, hospitality, health, education, creative technology and design.
+Added: We believe ANZ represents an attractive portfolio of institutions with a similar focus on innovation, academic outcomes, improved affordability and career advancement as us.
+Added: We also believe that ANZ provides an attractive platform for future growth, driven by Australia’s status as an attractive destination for international students.
As of December 31, 2021, our reportable segments consisted of the following:
−Removed: Strayer University Segment
+Added: Higher Education Segment
Strayer University
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JWMI is a Top-25 Princeton Review-ranked online MBA program.
−Removed: Strayer University is accredited by the Middle States Commission on Higher Education (“Middle States” or “Middle States Commission”), an institutional collegiate accrediting agency recognized by the Department of Education.
+Added: Strayer University also offers non-degree web and mobile application development courses through Hackbright Academy (“Hackbright”) and Devmountain.
+Added: Strayer University is accredited by the Middle States Commission on Higher Education (“Middle States” or “Middle States Commission”), a higher education institutional accrediting agency recognized by the Department of Education.
By offering its programs both online and in physical classrooms, Strayer University provides its working adult students with flexibility and convenience.
Strayer University, with its online offerings, attracts students from around the country and throughout the world.
−Removed: DevMountain is a software development school within Strayer University with locations in Lehi, Utah and Dallas, Texas.
−Removed: DevMountain’s primary offerings are on-site, 12-week immersive programs in Web Development, iOS Development, Quality Assurance, and UX Design.
−Removed: Beginning in March 2020, DevMountain's programs were offered exclusively online as a result of the COVID-19 pandemic.
−Removed: The programs include instructor-led sessions, guest lectures, presentations and learning activities in the mornings, followed by afternoon labs and group projects.
−Removed: Throughout the program and beyond course hours, students have access to DevMountain’s dedicated student success and employer relations teams as well as instructors and mentors.
−Removed: DevMountain does not participate in Title IV programs.
−Removed: Hackbright Academy
−Removed: Hackbright Academy ("Hackbright") is a San Francisco-based software engineering school for women with a mission to close the gender gap in the high-demand software engineering space.
−Removed: Hackbright’s core offering is an on-site, 12-week immersive software development program known as the “Fellowship Program.” Beginning in March 2020, Hackbright's programs were offered exclusively online as a result of the COVID-19 pandemic.
−Removed: Students spend the first half of the program primarily in lecture-based learning combined with labwork, in which students collaborate in pairs to build their programming knowledge.
−Removed: In the second half of the program, lectures continue, while the labwork gives way to more advanced project-based work, and the program concludes with an intense focus on career planning.
−Removed: Throughout the program, Hackbright supplements the learning experience with field trips to technology companies, exposing students to various technologies and career possibilities, as well as a series of networking events.
−Removed: Hackbright provides a high level of support and guidance, including assigned mentors who provide the student with support and technical advice, and an advisor who guides the student through the program.
−Removed: Hackbright also engages employers through placement agreements, in which Hackbright earns a placement fee in exchange for providing access to, and facilitating the transition of alumnae into employment at companies seeking in-demand, qualified female software engineers.
−Removed: Hackbright does not participate in Title IV programs.
−Removed: Capella University Segment
Capella University
−Removed: Capella University is an online post-secondary education company that offers a variety of bachelor's, master's, and doctoral degree programs primarily delivered to working adults.
−Removed: Capella University’s program offerings span six primary disciplines:
−Removed: public service leadership;
−Removed: nursing and health sciences;
+Added: Founded in 1993, Capella University is an online post-secondary education institution that offers a variety of bachelor's, master's, and doctoral degree programs primarily delivered to working adults.
+Added: Capella University’s program offerings span the following primary disciplines:
+Added: arts and sciences;
business and technology;
counseling and human services;
−Removed: and education.
−Removed: Capella University was founded in 1993 and is accredited by the Higher Learning Commission (the "Higher Learning Commission" or "HLC"), an institutional collegiate accrediting agency recognized by the Department of Education.
+Added: nursing and health sciences;
+Added: and public service leadership.
+Added: Capella University is accredited by the Higher Learning Commission (the “Higher Learning Commission” or “HLC”), a higher education institutional accrediting agency recognized by the Department of Education.
Capella University focuses on master's and doctoral degrees, with approximately 65% of its students enrolled in a master’s or doctoral degree program.
Its academic offerings are built with competency-based curricula and designed to demonstrate competencies through real-world, authentic assessments delivered in an online format that is both convenient and flexible.
−Removed: Sophia Learning
−Removed: Sophia Learning ("Sophia") is an innovative company which leverages technology and high quality academic content to provide self-paced online general education courses recommended by the American Council on Education for college credit.
−Removed: Sophia does not participate in Title IV programs.
Australia/New Zealand Segment
Founded in 2013, Torrens University is the only investor-funded University in Australia.
−Removed: Torrens University offers undergraduate and graduate courses primarily in five fields of study:
+Added: Torrens University offers undergraduate, graduate, higher degree by research, and specialized degree courses primarily in five fields of study:
business, design and creative technology, health, hospitality, and education.
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Think Education delivers education at several campuses in Sydney, Melbourne, Brisbane, and Adelaide as well as through online study.
−Removed: Think Education and its colleges are accredited in Australia by TEQSA and the Australian Skills Quality Authority, the regulator for vocational education and training organizations that operate in Australia.
+Added: Think Education and its colleges are accredited in Australia by TEQSA and the Australian Skills Quality Authority (“ASQA”), the regulator for vocational education and training organizations that operate in Australia.
Media Design School is a globally recognized private tertiary institution for creative and technology qualifications in New Zealand.
Media Design School offers industry-endorsed courses in 3D animation and visual effects, game art, game programming, graphic and motion design, digital media artificial intelligence, and creative advertising.
−Removed: Media Design School is accredited in New Zealand by the New Zealand Qualifications Authority, responsible for the quality assurance of non-university tertiary training providers.
+Added: Media Design School is accredited in New Zealand by the New Zealand Qualifications Authority (“NZQA”), the organization responsible for the quality assurance of non-university tertiary training providers.
+Added: Education Technology Services Segment
+Added: Our Education Technology Services segment is primarily focused on developing and maintaining relationships with employers to build employee education benefits programs that provide employees with access to affordable and industry relevant training, certificate, and degree programs.
+Added: The employer relationships developed by the Education Technology Services division are an important source of student enrollment for Strayer University and Capella University, and the majority of the revenue attributed to the Education Technology Services division is driven by the volume of enrollment derived from these employer relationships.
+Added: Education Technology Services also supports employer partners through Workforce Edge, a platform which provides employers a full-service education benefits administration solution, and Sophia Learning, which enables lower cost education benefits programs through the use of low-cost online general education courses recommended by the American Council on Education for credit at other colleges and universities.
Industry Background
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Controversy about the cost of higher education, under-employment of many college graduates, and persistent negative media coverage have caused some prospective students to question the value proposition of higher education.
+Added: Further, the COVID-19 pandemic has significantly reduced the number of students enrolled in post-secondary education institutions in recent years.
According to the National Student Clearinghouse Research Center, college enrollments in all higher education sectors declined 2.5% and 2.7% in the fall of 2020 and 2021, respectively.
−Removed: Enrollment at proprietary colleges declined 2.1% in the fall of 2019 and increased 5.3% in the fall 2020.
+Added: Enrollment at proprietary colleges increased 5.3% in the fall of 2020 and declined 9.3% in the fall 2021.
The industry is heavily dependent on continued availability of funding for programs under Title IV of the Higher Education Act (“Title IV programs”), and concerns about potential reductions in such funding also could negatively affect demand for higher education.
−Removed: Notwithstanding weaker demand dynamics over the past few years and the recent impact on enrollment resulting from the COVID-19 pandemic, we believe that over time, demand for post-secondary education in the United States will increase as a result of demographic, economic, and social trends.
+Added: Notwithstanding weaker demand dynamics over the past few years, including the more recent impact on enrollment resulting from the COVID-19 pandemic, we believe that over time, demand for post-secondary education in the United States will increase as a result of demographic, economic, and social trends.
Census Bureau has reported that approximately 61.6 million adults over the age of 25 in the United States do not have more than a high school education, and approximately 34.0 million adults over the age of 25 have some college experience but have not completed a college degree.
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• continued demand from working adults for programs offered by accredited institutions.
−Removed: The Australian higher education market has been growing 3-5% annually since 2009.
−Removed: In 2019, Australian higher education enrollments totaled approximately 1.6 million, compared to 1.1 million in 2009, resulting in a 42% increase in total enrollments over the last 10 years.
−Removed: The Australian higher education market is expected to continue growing in the coming years, with a significant share of growth coming from international students.
−Removed: The number of international students enrolled in Australian higher education institutions has grown from 0.3 million in 2009 to 0.5 million in 2019.
−Removed: Due to Australia closing its borders in response to the COVID-19 pandemic, international enrollments will likely experience a period of decline.
+Added: Prior to the COVID-19 pandemic and the corresponding closure of Australia's borders, the Australian higher education market experienced consistent growth.
+Added: In 2019, Australian higher education enrollments totaled approximately 1.6 million, compared to 1.1 million in 2009, resulting in a 42% increase in total enrollments over the 10 year period.
+Added: The number of international students enrolled in Australian higher education institutions grew from 0.3 million in 2009 to 0.5 million in 2019.
+Added: The Australian higher education market is expected to continue growing in the coming years, with a significant share of growth expected from international students.
+Added: However, due to Australia closing its borders in response to the COVID-19 pandemic, international enrollments have declined in recent years and will likely not return to growth until Australia's borders are fully reopened.
The post-secondary education market is highly competitive, with no private or public institution holding a significant market share.
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As online learning matures as a modality for education delivery across higher education, we believe that the intensity of the competition we face will continue to increase.
−Removed: We believe the key factors affecting our competitive position include the quality of our programs offered, the quality of other services provided to students, our reputation among students and in the general marketplace, the cost and perceived value of our offerings, the employment rate and terms of employment for our graduates, the ease of access to our offerings, the quality and reputation of our faculty and other employees, the quality of our campus facilities and online platforms, the time
−Removed: commitment required to complete our programs and obtain a degree, the quality and size of our alumni base, and our relationship with other learning institutions.
+Added: We believe the key factors affecting our competitive position include the quality of our programs offered, the quality of other services provided to students, our reputation among students and in the general marketplace, the cost and perceived value of our offerings, the employment rate and terms of employment for our graduates, the ease of access to our offerings, the quality and reputation of our faculty and other employees, the quality of our campus facilities and online platforms, the time commitment required to complete our programs and obtain a degree, the quality and size of our alumni base, and our relationship with other learning institutions.
Company Strengths
−Removed: The Company has a track record of providing practical and convenient education programs and solutions for working adults, employers, and recent high school graduates.
−Removed: Through its merger with Capella Education Company on August 1, 2018 (the "Merger”) and its acquisition of ANZ on November 3, 2020, the Company retains the individual strengths of its independently operated universities while creating a combined corporate and shared-service platform and best practice sharing, both of which help us deliver significant benefits to students.
+Added: We have a track record of providing practical and convenient education programs and solutions for working adults, employers, and recent high school graduates.
+Added: Following our merger with Capella Education Company and our acquisition of ANZ, we have retained the individual strengths of our independently operated universities while creating a combined corporate and shared-service platform and best practice sharing, both of which help us deliver significant benefits to students.
We believe the following strengths position us to capitalize on the demand for post-secondary education:
• Focus on Innovation.
−Removed: The Company values innovation and actively invests in the educational experience to improve student success and employment outcomes, while also addressing challenges including the affordability of higher education and meeting the skill requirements of employers.
+Added: We value innovation and actively invest in the educational experience to improve student success and employment outcomes, while also addressing challenges including the affordability of higher education and meeting the skill requirements of employers.
Capella University’s competency-based learning infrastructure and direct assessment capabilities, Strayer University’s video, simulation and content capabilities, and Torrens University's virtual career expo are examples of this drive to transform education delivery and learning by working adults.
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In order to keep pace with a changing knowledge-based economy, we constantly strive to meet the evolving needs of our students and their current and prospective employers by regularly refining, updating, and adding to our portfolio of educational programs.
−Removed: The Company has a diversified program portfolio that includes Strayer University’s programs in business, including the Jack Welch Management Institute, accounting, economics and information technology, Capella University’s competency-based programs in healthcare and counseling, as well as a robust doctoral portfolio, and ANZ's post-graduate programs in business administration, information systems and public health, its renowned Blue Mountains International Hotel Management and Billy Blue Design schools, recently accredited nursing bachelor's degree and award-winning creative and digital technology qualifications.
−Removed: This program diversity will help the Company better meet the educational needs of students in the modern economy.
+Added: We have a diversified program portfolio that includes Strayer University’s programs in business, including the Jack Welch Management Institute, accounting, economics and information technology, Capella University’s competency-based programs in healthcare and counseling, as well as a robust doctoral portfolio, and ANZ's post-graduate programs in business administration, information systems and public health, its renowned Blue Mountains International Hotel Management and Billy Blue Design schools, accredited nursing bachelor's degree and award-winning creative and digital technology qualifications.
+Added: This program diversity helps us better meet the educational needs of students in the modern economy.
• Focus on adults pursuing career-relevant degree and non-degree programs.
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• Flexible program offerings.
−Removed: We offer flexible programs that allow students to attend classes and complete coursework during the day, in the evening, and on weekends throughout the calendar year at our on-ground campuses, and at the student's convenience through our comprehensive online program offerings.
+Added: We offer flexible programs that allow students to attend classes and complete coursework during the day, in the evening, and on weekends throughout the calendar year at the student's convenience through our comprehensive online program offerings.
• Attractive and convenient campus locations.
−Removed: Physical presences continue to be an important strength for the Company, notwithstanding the fact that the vast majority of academic activity occurs online.
−Removed: Strayer University and Capella University have campuses and campus centers that are attractive and modern, offering conducive learning environments in convenient locations, and provide many online students with a physical location to study and to meet with enrollment counselors and academic advisors.
−Removed: These physical campuses and campus centers are unique in comparison to most online education programs and positions Strayer University and Capella University to support their online learners more effectively.
+Added: Physical presences continue to be an important strength for us, notwithstanding the fact that the vast majority of academic activity occurs online.
+Added: Strayer University has campuses and campus centers that are attractive and modern, offering conducive learning environments in convenient locations, and provide many online students with a physical location to study and to meet with admissions officers and academic advisors.
+Added: These physical campuses and campus centers are unique in comparison to most online education programs and positions Strayer University to support its online learners more effectively.
ANZ campuses are located in central business districts of major cities across Australia and New Zealand, with accessibility and proximity to industry partners, and offer a focused and personal learning experience to their students.
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Their students and graduates are effective ambassadors of both brands through their work at companies across corporate America and, along with our growing alumni networks, foster greater brand awareness and additional referral opportunities for new students.
−Removed: ANZ continues to build the reputation and brand
−Removed: awareness of Torrens University through the success of its students and graduates, its research programs and its relationships with key industry partners, while also leveraging the existing strengths in its established college brands, and Think Education and Media Design School businesses.
+Added: ANZ continues to build the reputation and brand awareness of Torrens University through the success of its students and graduates, its research programs and its relationships with key industry partners, while also leveraging the existing strengths in its established college brands, and Think Education and Media Design School businesses.
Company Strategy
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We measure our performance through student surveys and focus groups as well as through metrics like persistence, continuation, and return on student investment.
−Removed: • Address affordability — Recognizing that affordability is a significant factor in a prospective student’s decision to further his or her education, the Company has implemented various initiatives to make its programs more affordable.
−Removed: For example, through the Graduation Fund, introduced at Strayer University in late 2013, qualifying students enrolled in a bachelor’s degree program are eligible to receive one free course for every three courses successfully completed towards a bachelor’s degree.
+Added: • Address affordability — Recognizing that affordability is a significant factor in a prospective student’s decision to further his or her education, we have implemented various initiatives to make our programs more affordable.
+Added: For example, through the Graduation Fund at Strayer University, qualifying students enrolled in a bachelor’s or master's degree program are eligible to receive one free course for every three courses successfully completed towards a bachelor’s degree.
The free courses earned are redeemable in one’s final academic year.
Additionally, Capella University’s FlexPath direct assessment model provides opportunity to drive affordability through the potential for lower tuition costs, reduced time to completion, and increased flexibility.
−Removed: Strayer University, Capella University and Torrens University have also instituted various other tuition reductions and scholarships.
+Added: The Universities have also instituted various other tuition reductions and scholarships.
+Added: Through the Sophia Learning education platform, we provide low-cost online general education courses recommended by the American Council on Education for credit at other colleges and universities, which can dramatically lower the cost of getting a degree.
We continue to monitor and assess the impact of our affordability initiatives and explore other ways to make our offerings as affordable as possible.
−Removed: We have also begun to deploy more aggressive technology innovations, including artificial intelligence and automation, which enable us to lower our operating costs and thus improve our ability to support lower tuition.
−Removed: Our focus on affordability is further supported by the corporate-level efficiencies achieved through the Merger and ANZ acquisition.
−Removed: • Establish new platforms for growth — We are constantly looking for new ways to leverage our existing resources and capabilities to grow.
−Removed: The CEC Merger and ANZ acquisition each provided an opportunity to leverage best-in-class processes and practices to accelerate growth, and we believe we can expand benefits to our students and students of other institutions through opportunistic business combinations.
+Added: We are also focused on deploying new, more aggressive technology innovations, including artificial intelligence and automation, which enable us to lower our operating costs and thus improve our ability to support lower tuition.
+Added: • Establish new platforms for growth — We are continuously looking for new ways to leverage our existing resources and capabilities to accelerate growth and expand benefits to our students through our best-in-class processes and practices and through opportunistic business combinations.
In 2018, we launched SEI Ventures, which is a seed-stage venture fund that supports pioneering education tech start-ups focused on transformational technologies that improve student success.
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We also continue to develop new programs and concentrations.
+Added: We are actively building relationships with employers to create employee education benefits programs that provide employees with access to affordable and industry relevant training, certificate and degree programs.
+Added: These relationships are an important source of corporate-funded enrollment for Strayer University and Capella University.
+Added: Our Workforce Edge platform, which provides a full-service education benefits administration solution to employers, is also positioned to drive enrollment in our universities that is less reliant on federal funding.
• Build a high performing culture — In order to be a leading provider of educational services, we must have talented and motivated faculty and employees who are passionate about serving students.
1 unchanged sentence
We want to be known as an employer of choice and be a place where one can build a long-term career.
+Added: Higher Education (“USHE”) Segment
+Added: The USHE segment provides flexible and affordable certificate and degree programs to working adults primarily through Strayer University and Capella University (the “USHE Universities”), including the Jack Welch Management Institute MBA, which is a unit of Strayer University.
+Added: USHE also offers non-degree web and mobile application development courses through Hackbright Academy and Devmountain, which are units of Strayer University.
+Added: Student Profile
+Added: The following is a breakdown of students by program level enrolled in the USHE Universities as of the 2021 fall term:
+Added: Strayer University students Capella University students Total USHE
+Added: students Percentage of
+Added: USHE students
+Added: Bachelor’s 30,420 13,170 43,590 55 %
+Added: Master’s 6,707 18,537 25,244 32 %
+Added: Doctoral — 7,778 7,778 10 %
+Added: Associate's 1,266 — 1,266 2 %
+Added: 59 784 843 1 %
+Added: Total Students 38,452 40,269 78,721 100 %
+Added: ___________________________________________________________
+Added: * Other primarily comprised of students enrolled in certificate programs.
+Added: The USHE segment has a very diverse student population.
+Added: Of the students enrolled in the USHE Universities programs as of the 2021 fall term, approximately 70% were age 31 or older, approximately 81% were engaged in part-time study, approximately 77% were female, and approximately 58% of students self-reporting their ethnicity were minorities.
+Added: The USHE business is seasonal, and as a result, its quarterly results of operations tend to vary within the year due to student enrollment patterns.
+Added: Enrollment generally is lowest in the third quarter, or summer term.
Strayer University
−Removed: Strayer University is an institution of higher learning that offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, health services administration, public administration, and criminal justice at 64 physical campuses, predominantly located in the eastern United States, and online.
−Removed: Strayer University is accredited by the Middle States Commission, an institutional collegiate accrediting agency recognized by the Department of Education.
+Added: Strayer University is an institution of higher learning that offers undergraduate and graduate degree programs in business, information technology, education, health services administration, public administration, and criminal justice at physical campuses, predominantly located in the eastern United States, and online.
+Added: Strayer University is accredited by the Middle States Commission, a higher education institutional accrediting agency recognized by the Department of Education.
By offering its programs both online and in physical classrooms, Strayer University provides its working adult students more flexibility and convenience.
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Strayer University regularly evaluates new programs and degrees to stay current with the needs of students and their employers.
−Removed: Each undergraduate degree program includes courses in oral and written communication skills, as well as mathematics and various disciplines in the humanities and social sciences.
−Removed: In addition to degree and diploma programs, Strayer University offers classes to non-degree and non-program students wishing to take courses for personal or professional enrichment.
Although most of its programs are offered at campuses and online, Strayer University adapts its course offerings to the demands of the student population at each location.
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Tuition for online courses is the same as campus-based courses.
−Removed: Strayer University appoints faculty who hold appropriate academic credentials, are dedicated, active professionals in their field, and are enthusiastic and committed to teaching working adults.
+Added: Strayer University appoints faculty who hold appropriate academic credentials, are dedicated, active professionals in their fields, and are enthusiastic and committed to teaching working adults.
In accordance with Strayer University’s educational mission, Strayer University faculty members focus their efforts only on teaching and student support, and not on research and/or publishing.
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Within the academic, strategic and financial parameters set by the Board of Trustees, Strayer University is managed on a daily basis by the Strayer University President.
−Removed: The President is charged with the responsibility of overseeing the implementation of the policies established by the Board of Trustees and is supported in this function by senior administrative
−Removed: officers, including the Provost/Chief Academic Officer of Strayer University.
+Added: The President is charged with the responsibility of overseeing the implementation of the policies established by the Board of Trustees and is supported in this function by senior administrative officers, including the Provost/Chief Academic Officer of Strayer University.
The majority of Strayer University’s operations are centralized within the President’s Office or Strayer University’s senior administrative staff offices.
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Additionally, information about new programs is provided to students and alumni to encourage them to return for further education.
−Removed: Student Profile
−Removed: The majority of Strayer University students are working adults completing their first college degree to improve their job skills and advance their careers.
−Removed: Of the students enrolled in Strayer University’s programs at the beginning of the 2020 fall quarter, approximately 64% were age 31 or older, and approximately 90% were engaged in part-time study (fewer than three courses each quarter for undergraduate students and fewer than two for graduate students).
−Removed: Strayer University has a very diverse student population.
−Removed: At the beginning of the 2020 fall quarter, approximately 73% of students self-reporting their ethnicity were minorities, and approximately 72% of students were women.
−Removed: Strayer University prides itself on making post-secondary education accessible to working adults who were previously unable to take advantage of educational opportunities.
−Removed: The following is a breakdown of Strayer University students by program level as of the 2020 fall term:
−Removed: students Percentage of
−Removed: total students
−Removed: Bachelor’s 40,770 80 %
−Removed: Master’s 8,608 17 %
−Removed: Associate's 1,309 3 %
−Removed: Total Students 50,773 100 %
−Removed: _______________________________________________________________________
−Removed: * Represents less than 1%.
−Removed: Strayer University’s business is seasonal, and as a result, its quarterly results of operations tend to vary within the year due to student enrollment patterns.
−Removed: Enrollment generally is lowest in the third quarter, or summer term.
Student Admissions
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Strayer University charges tuition by the course.
−Removed: Tuition rates may vary in states with specific regulations governing tuition costs.
−Removed: Each course is 4.5 credit hours.
−Removed: As of January 1, 2021, undergraduate tuition is $1,480 per course.
−Removed: Undergraduate students who were previously enrolled at Strayer University are charged rates ranging from $1,480 to $1,775 per course.
−Removed: As of January 1, 2021, graduate students who were new to Strayer University after January 1, 2015 are charged at a rate of $2,490 per course, while other graduate students are charged at a rate of $2,365 per course.
−Removed: For the Jack Welch Management Institute, new students are charged at the rate of $3,850 per course.
−Removed: For some students who were previously enrolled in the Jack Welch Management Institute, tuition is charged at rates ranging from $2,580 to $3,650 per course.
−Removed: Under a variety of different programs and in connection with various corporate and government sponsorship and tuition reimbursement arrangements, Strayer University offers scholarships and tuition discounts to students.
−Removed: One of these programs, the Graduation Fund, offers a student in a bachelor’s program an opportunity to earn up to a 25% reduction of the tuition required for a degree.
+Added: Tuition rates vary based on degree level and program.
+Added: In addition, tuition rates may vary in states with specific regulations governing tuition costs.
+Added: Tuition rates are reviewed at least annually.
+Added: Year-over-year tuition adjustments are specific to the degree level or program and depend on market conditions, program differentiation or changes in operating costs associated with the degree level or program
+Added: Strayer University offers scholarships and tuition discounts to students under a variety of different programs and in connection with various corporate and government sponsorship and tuition reimbursement arrangements.
+Added: One of these programs, the Graduation Fund, offers a student in a bachelor’s or master's program an opportunity to earn up to a 25% reduction of the tuition required for a degree.
A new undergraduate student who has no transfer credit, seeks to obtain a bachelor’s degree in four years, and is eligible for the Graduation Fund will pay on average approximately $11,000 per year in tuition.
5 unchanged sentences
Capella University
−Removed: Capella University offers a variety of doctoral, master’s, and bachelor’s programs, primarily for working adults.
−Removed: Capella University focuses on master's and doctoral degrees, with approximately 70% of its students enrolled in a master’s or doctoral degree program.
+Added: Capella University is an institution of higher learning that offers a variety of doctoral, master’s, and bachelor’s degree programs, primarily for working adults.
+Added: Capella University is accredited by the Higher Learning Commission, a higher education institutional accrediting agency recognized by the Department of Education.
Capella University's academic offerings are built with competency-based curricula and are delivered in an online format that is convenient and flexible.
Capella University designs its offerings to help working adult students develop specific competencies they can apply in their workplace.
−Removed: Capella University is accredited by the Higher Learning Commission, an institutional collegiate accrediting agency recognized by the Department of Education.
−Removed: Capella University’s program offerings cover six disciplines:
−Removed: public service leadership;
−Removed: nursing and health sciences;
+Added: Capella University’s program offerings span the following primary disciplines:
+Added: arts and sciences;
business and technology;
counseling and human services;
−Removed: and education.
+Added: nursing and health sciences;
+Added: and public service leadership.
Capella University's GuidedPath credit-hour courses are offered on a quarterly academic schedule, which generally coincides with calendar quarters.
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FlexPath students set their own deadlines, demonstrate competencies via authentic assessment, and move through courses at their own speed, giving them an opportunity to accelerate or slow down to meet their learning needs and schedule demands.
−Removed: The primary exception to Capella University’s online format is for doctoral students and for certain master’s degree candidates pursuing professional licenses.
+Added: The primary exception to Capella University’s online format is for doctoral programs and for certain master’s degree programs related to professional licensure.
These students participate in periodic residencies, year-in-residencies, and supervised practica and internships as a complement to their courses.
−Removed: Residencies typically last from three to 42 days and are required, on
−Removed: average, once per year for students in applicable programs.
+Added: Residencies typically last from four to 12 days and are required, on average, once per year for students in applicable programs.
The supervised practica and internships vary in length based on the program in which the student is enrolled.
Capella University also offers certificate programs, which consist of a series of courses focused on a particular area of study, for students who seek to enhance their skills and knowledge.
−Removed: Online certificate courses can be taken to prepare for a graduate degree program or on a stand-alone basis.
+Added: Online certificate courses can be taken to prepare for an undergraduate degree program, graduate degree program or on a stand-alone basis.
The duration of certificate programs ranges from two quarters to approximately two years.
Capella University hires faculty who have teaching and/or practitioner experience in their particular discipline and possess significant and appropriate academic credentials.
−Removed: The faculty consists of full-time academic administrators, faculty chairs, core faculty and part-time faculty.
+Added: The faculty consists of full-time academic administrators, core faculty and part-time faculty.
The full-time academic administrators’ primary responsibilities are to monitor the quality and relevance of curricula, to recruit and manage teaching faculty, and to maintain standards of accreditation.
−Removed: Faculty chairs supervise the faculty in their respective specializations.
+Added: Faculty are supervised by academic leaders within their schools.
Core faculty and part-time faculty teach courses, serve on curriculum or other relevant committees, work on curriculum development in their areas of expertise, and serve as comprehensive exam and dissertation mentors to doctoral students.
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Capella University’s By-Laws prescribe that a majority of members be independent from Capella University and the Company to provide independent oversight of all academic programs and services.
−Removed: Of the twelve members, eight are independent.
+Added: Of the twelve members, nine are
The Boards of Trustees of Stayer University and Capella University are independent of each other, as well as from the Board of Directors of Torrens University, and have no overlapping members.
Within the academic, strategic and financial parameters set by the Board of Trustees, Capella University is managed on a daily basis by the Capella University President.
−Removed: The President is charged with the responsibility of overseeing the implementation of the policies established by the Board of Trustees and is supported in this function by senior administrative officers, including the Chief Academic Officer and Vice President of Academic Affairs of Capella University.
−Removed: The majority of Capella University’s operations are centralized within the President’s Office or Capella University’s senior administrative staff offices.
+Added: The President is charged with the responsibility of overseeing the implementation of the policies established by the Board of Trustees and is supported in this function by senior administrative officers, including the Provost and Senior Vice President of Academic Affairs of Capella University.
Capella University engages in a range of relationship-based marketing activities to build the Capella brand, differentiate it from other educational providers, increase awareness and consideration with prospective students, generate inquiries for enrollment, and stimulate referrals from current students and graduates.
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Online advertising (display, social, mobile, search, and through aggregators) currently generates the largest volume of inquiries from prospective students.
−Removed: Student Profile
−Removed: As of December 31, 2020, Capella University enrollment was 41,073 students.
−Removed: Of these students, approximately 71% were engaged in part-time study, approximately 82% were female, and approximately 43% of students self-reporting their ethnicity were minorities.
−Removed: Capella University’s student population is geographically distributed primarily throughout the United States.
−Removed: The following summarizes Capella University students as of December 31, 2020:
−Removed: Program Number of
−Removed: students Percentage of
−Removed: total students
−Removed: Master's 19,130 47 %
−Removed: Bachelor's 12,928 31 %
−Removed: Doctoral 8,210 20 %
−Removed: Other 805 2 %
−Removed: Total 41,073 100 %
Student Admissions
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Per course prices vary by discipline, number of credit hours, and degree level.
−Removed: Per course prices for bachelor's level GuidedPath credit hour programs were $2,500 for the 2020-2021 academic year (the academic year that began in July 2020), and from approximately $1,100 to $2,500 for the 2019-2020 academic year (the academic year that began in July 2019).
−Removed: Per course prices for master's level GuidedPath credit hour programs ranged from approximately $1,700 to $3,300 for both the 2020-2021 academic year and the 2019-2020 academic year.
−Removed: Per course prices for doctoral level GuidedPath credit hour programs ranged from approximately $2,400 to $3,800 for the 2020-2021 academic year and from $2,500 to $4,300 for the 2019-2020 academic year.
Students in select doctoral programs are charged tuition at a fixed quarterly amount, regardless of the number of courses for which the student registers.
−Removed: Quarterly tuition rates ranged from approximately $3,200 to $4,900 per quarter for the 2020-2021 academic year and from $4,400 to $4,900 per quarter for the 2019-2020 academic year.
Tuition for FlexPath doctoral, master's and bachelor's programs is priced at a flat, fixed amount for each 12-week subscription period.
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however, a maximum of two FlexPath courses can be taken at any one time.
−Removed: Tuition for bachelor's level FlexPath programs ranged from $2,500 to $3,200 per 12-week subscription period in both the 2020-2021 academic year and the 2019-2020 academic year.
−Removed: Tuition for master's level FlexPath programs ranged from $2,400 to $2,800 per 12-week subscription period for both the 2020-2021 academic year and the 2019-2020 academic year.
−Removed: Tuition for Capella's Doctor of Nursing Practice in the FlexPath format is $3,200 per 12-week subscription period for the 2020-2021 academic year.
−Removed: “Other” in the preceding enrollment table primarily includes students enrolled in certificate programs.
Students in credit hour certificate programs are charged tuition on a per course basis, which varies by discipline and the number of credit hours.
−Removed: Per course prices for certificate programs ranged from approximately $1,700 to $3,200 for the 2020-2021 academic year and from $1,100 to $4,500 for the 2019-2020 academic year.
−Removed: Tuition for FlexPath certificate programs was $2,750 per 12-week subscription period for both the 2020-2021 academic year and the 2019-2020 academic year.
−Removed: Year-over-year tuition increases are specific to the program or specialization and depend on market conditions, program differentiation or changes in operating costs that have an impact on price adjustments of individual programs or specializations.
−Removed: These program costs will vary by student based upon the program and specialization selected, the number of courses taken per quarter and the number of transfer credits earned.
+Added: Tuition rates are reviewed at least annually.
+Added: Year-over-year tuition adjustments are specific to the program or specialization and depend on market conditions, program differentiation or changes in operating costs that have an impact on price adjustments of individual programs or specializations.
Capella University offers scholarships and tuition discounts, under a variety of different programs, to members of the armed forces and in connection with various corporate, healthcare, federal and educational marketing relationships, for example:
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• Corporate, healthcare and federal relationships with more than 800 large and mid-size organizations.
−Removed: • Educational relationships that encourage graduates of nearly 300 community colleges to enroll in Capella University undergraduate programs and faculty and administrators to enroll in Capella University graduate programs.
+Added: • Educational relationships that encourage graduates of community colleges to enroll in Capella University undergraduate programs and faculty and administrators to enroll in Capella University graduate programs.
As of December 31, 2021, approximately 33% of Capella University students received a discount in connection with these programs.
Throughout the past several years, Capella University expanded and refined its offering of student success scholarships under a variety of different programs to promote affordability and encourage students to remain enrolled.
−Removed: Students must meet admission requirements and enroll and apply within certain timeframes to receive the scholarships, which are generally awarded over a period of four to eight consecutive quarters.
+Added: Students must meet admission requirements, enroll and apply within certain timeframes to receive the scholarships, which are generally awarded over a period of four to eight consecutive quarters.
As of December 31, 2021, approximately 15% of Capella University students were awarded a scholarship.
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Career counseling, job search advising, and career management support is provided by staff to all Capella University students and alumni.
−Removed: Capella University career counselors interact with students and alumni via email, telephone, and online seminars to assist with career-related activities such as resume development;
+Added: Career counselors interact with students and alumni via email, telephone, and online seminars to assist with career-related activities such as resume development;
curriculum vitae and cover letter development;
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The Career Center’s online iGuide resources help students gather occupational information and trends, access job postings and view sample job search documents.
−Removed: Counselors also assist with prospective students’ selection of the Capella University program and specialization that best suits their professional aspirations.
−Removed: Australia/New Zealand
−Removed: Torrens University, Think Education, and Media Design School (collectively the "ANZ Institutions") offer undergraduate and graduate degree courses as well as vocational programs primarily focused in five key disciplines:
+Added: Enrollment counselors also assist with prospective students’ selection of the Capella University program and specialization that best suits their professional aspirations.
+Added: Australia/New Zealand Segment
+Added: The Australia/New Zealand segment is comprised of Torrens University, Think Education, and Media Design School (collectively the “ANZ Institutions”) that together offer undergraduate, graduate, higher degree by research, and specialized degree courses as well as vocational programs in Australia and New Zealand.
+Added: Student Profile
+Added: Students attending the ANZ Institutions primarily consist of recent high school graduates as well as working adults.
+Added: The student population includes domestic students, representing citizens or permanent residents of Australia and New Zealand, and international students.
+Added: Approximately half of students are international students that are attending classes in person (typically on a student visa), at a foreign partner campus, or online.
+Added: The ANZ Institutions offer undergraduate, graduate, higher degree by research, and specialized degree courses as well as vocational programs primarily focused in five key disciplines:
business, design and creative technology, health, hospitality, and education.
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All new faculty are required to complete an academic on-boarding program, which includes an introduction to the institution they are joining.
−Removed: The on-boarding program is followed by a rolling schedule of training sessions and symposiums during the year addressing key topics relating to teaching and learning, thus enabling staff continuously to develop their skills and remain up-to-date with new developments.
−Removed: In addition, an Academic Professional Development program is available to all
−Removed: academic staff, which provides opportunities from core competency development to advanced teaching methodologies.
+Added: The on-boarding program is followed by a rolling schedule of training sessions and symposiums
+Added: during the year addressing key topics relating to teaching and learning, thus enabling staff to continuously develop their skills and remain up-to-date with new developments.
+Added: In addition, an Academic Professional Development program is available to all academic staff, which provides opportunities from core competency development to advanced teaching methodologies.
These programs are delivered as formal trainings, national symposiums, online facilitated seminars, informal community-based professional learning events and access to a learning and teaching resource repository and network.
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Organization of the ANZ Institutions
−Removed: Each ANZ Institution has a local Governing Board and an Academic Board.
+Added: Each ANZ Institution has a local Governing Board, as well as an Academic Board that oversees all three institutions.
The Governing Board meets at least quarterly and provides oversight of the management of the institutions, which includes providing input into strategic direction, risk management, academic governance, reporting and disclosure, performance, corporate governance and delegations.
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These marketing activities include digital paid campaigns, social media engagement as well as events such as open days for students to come learn about the institutions, seminars or webinars that are offered both in person and virtual, as well as through high school career fairs or agents’ career fairs for international students.
−Removed: Student Profile
−Removed: Students attending the ANZ Institutions primarily consist of recent high school graduates as well as working adults.
−Removed: The student population includes domestic students, representing citizens or permanent residents of Australia and New Zealand, and international students.
−Removed: Approximately half of students are international students that are attending classes in person (typically on a student visa), at a foreign partner campus, or online.
Student Admissions
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The admission requirements are program-specific and may include formal qualifications, extensive relevant professional experience, or a combination of formal qualifications and relevant professional experience.
−Removed: In addition, applicants must provide evidence of
−Removed: meeting the English language proficiency level required by each program and as required by the New Zealand Qualifications Authority.
+Added: In addition, applicants must provide evidence of meeting the English language proficiency level required by each program and as required by the New Zealand Qualifications Authority.
Tuition and Fees
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In addition, the ANZ Institutions offer a range of scholarships and discounts to students that are both merit-based and based on specific circumstances.
−Removed: Students are typically required to pay tuition in advance of starting a course.
−Removed: Domestic students in Australia will choose to pay either out of pocket or by taking a loan through use of the government’s Higher Education Loan Program or Vocational Student Loan Program.
−Removed: Domestic students in New Zealand may also utilize government loans to fund tuition, and in addition may be eligible for a period of ‘fees free’ study funded by the government.
−Removed: International students are not eligible for government funding and pay out of pocket.
Career Development Services
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and view and register for careers and industry-related events.
−Removed: The ANZ Institutions also partner with Forage to bring students free virtual work experience to help them build their employability skills.
+Added: The ANZ Institutions also partner with Forage and Practera to bring students free virtual work experience to help them build their employability skills.
These short experiences, developed by global industry leaders, help students gain practical work skills and receive a certificate upon completion.
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The Success Coach's focus is to improve the employability of each student by using their industry knowledge to maximize the impact of the student's application and presentation of their personal brand.
+Added: Education Technology Services Segment
+Added: Our Education Technology Services segment is primarily focused on developing and maintaining relationships with employers to build employee education benefits programs that provide employees with access to affordable and industry relevant training, certificate, and degree programs.
+Added: The employer relationships developed by the Education Technology Services division are an important source of student enrollment for Strayer University and Capella University, and the majority of the revenue attributed to the Education Technology Services division is driven by the volume of enrollment derived from these employer relationships.
+Added: Education Technology Services also supports employer partners through Workforce Edge, a platform which provides employers a full-service education benefits administration solution, and Sophia Learning, which enables lower cost education benefits programs through the use of low-cost online general education courses recommended by the American Council on Education for credit at other colleges and universities.
Human Capital Resources
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Outside the U.S., the Company employed 245 full-time faculty members, and 658 non-faculty staff.
+Added: The following tables presents the gender representation of our U.S.
+Added: and ANZ employees:
+Added: employees ANZ employees
+Added: Female 61 % 62 %
+Added: Male 38 % 37 %
+Added: Not Declared 1 % 1 %
+Added: The following table presents the race and ethnicity representation of our U.S.
+Added: Black or African American 21.4 %
+Added: Hispanic or Latino 2.6 %
+Added: Two or More Races 0.6 %
+Added: Native Hawaiian or Other Pacific Islander 0.3 %
+Added: American Indian or Alaska Native 0.9 %
+Added: Not Declared 8.8 %
SEI is committed to operating transparently and with the highest standards of integrity.
Our guiding principles and leadership behaviors emphasize student-centric priorities and drive us as we continue to build a vibrant, diverse and inclusive culture.
−Removed: Recurring organization health surveys offer employees a way to share feedback with SEI senior leaders on priorities, leadership culture, and the workplace, and are used to shape company goals.
+Added: Recurring organization health surveys offer employees a way to share feedback with senior leaders on priorities, leadership culture, and the workplace, and are used to shape Company goals.
The executive leadership team hosts frequent Company-wide town hall meetings and mentoring sessions that inform employees about the Company’s initiatives and results and provide insight on skills and attributes that drive success.
−Removed: The Company also supports numerous platforms for employee engagement, such as community and employee network groups which provide opportunities for employees to experience inclusive community at SEI through development opportunities, informal mentoring and volunteering.
−Removed: SEI honors and celebrates diversity, equity and inclusion as core institutional principles.
+Added: The Company also supports numerous platforms for employee engagement, such as community and employee network groups which provide opportunities for employees to experience an inclusive community at SEI through development opportunities, informal mentoring and volunteering.
+Added: SEI honors and celebrates diversity, equity and inclusion (“DEI”) as core institutional principles.
The Company is fully engaged in cultivating a diverse and inclusive workforce and environment that reflects all stakeholders.
This activity is aligned with SEI’s commitment to advancing diversity in key roles.
−Removed: In 2019, SEI created the CEO’s Council on Diversity, Equity, and Inclusion, which is charged with promoting these initiatives across the organization.
−Removed: Online resources are also available to help SEI employees foster an inclusive environment and demonstrate empathy and cultural competence.
+Added: In 2019, the Company launched the CEO’s Council on Diversity, Equity, and Inclusion, an advisory council which is charged with promoting DEI initiatives across the organization.
+Added: In 2021, we continued our focus on diversity, equity and inclusion initiatives and established a DEI Programs Team;
+Added: appointed from amongst our leadership a Chief Diversity Officer for the Company;
+Added: and the presidents of Strayer and Capella Universities appointed university-level Diversity Officers.
+Added: The DEI Programs Team continues to shape and drive forward our enterprise diversity, equity, and inclusion strategy.
The Company is dedicated to attracting, developing and retaining top talent.
−Removed: SEI offers compensation and benefits packages that are market-competitive and performance-based.
+Added: SEI offers compensation and benefits that are market-competitive and performance-based.
The compensation programs and policies reflect the Company’s commitment to reward performance that aligns with its values and priorities.
+Added: SEI offers a comprehensive benefits package focused on ensuring our employees are empowered to maintain a healthy work-life balance, a healthy living lifestyle, and financial wellness.
+Added: SEI's benefits package includes traditional health and wellness benefits, as well as programs to assist employees' in accumulating wealth through the Company sponsored 401(k) Plan and Employee Stock Purchase Plan in the United States and through the Company's contributions to the superannuation fund on behalf of employees in Australia.
+Added: The Company also provides generous paid time off, a wellness plan, paid parental and military leave, as well as giving back & volunteer time.
SEI fosters the growth and career development of its employees by creating solutions that support employees to deliver high performance, grow their careers, and contribute to SEI’s mission to enable economic mobility of its students through education.
+Added: The Company provides opportunities for eligible employees and dependents to attain and enhance their career goals through our Tuition Assistance Program, which provides generous financial support for undergraduate and graduate courses at Strayer University, including the Jack Welch Management Institute, Capella University, and continuing education through Sophia Learning.
+Added: In addition, the Company provides support for faculty members and employees seeking to enhance their skills and knowledge through professional development opportunities and continuing education.
Online learning resources are available that cover a broad range of skills, including leadership, professional development, innovation, communication and technology.
The Company has also prioritized identifying high-performing employees to accelerate their development and foster a strong, diverse succession pipeline.
+Added: Environmental Responsibilities
+Added: SEI is dedicated to creating economic mobility for working adults through innovative learning programs.
+Added: In our pursuit of this mission, we maintain physical locations to support our employees and students, and are committed to managing these facilities in a manner that minimizes the environmental impact in the communities where we work and live.
+Added: The Company strives to uphold environmental practices that reduce climate change risks from energy consumption, greenhouse gas emissions, water usage, and waste generation.
+Added: These practices include:
+Added: • Reducing the physical footprint of corporate offices and campuses reduces energy consumption, water usage, and waste generation
+Added: ◦ The Company's near-term goals include reducing the size of its overall footprint by more than 25% compared to the square footage occupied in 2020, by implementing more efficient workspace design and eliminating underused campus facilities.
+Added: • Reducing energy consumption, including from non-renewable energy resources
+Added: ◦ Strayer University and Capella University offer robust online curriculums, with the majority of instruction delivered online at Stayer University and 100% of instruction delivered online at Capella University;
+Added: this online curriculum gives students the ability to access and complete coursework online, reducing the need for physical space and commuting, which in turn reduces energy and water usage, greenhouse gas emissions, and waste generation.
+Added: ◦ Much of SEI's workforce is accustomed to working remotely, again reducing the need for physical space and commuting, which in turn reduces energy and water usage, greenhouse gas emissions, and waste generation.
+Added: ◦ Our Minneapolis, MN corporate office is located within a LEED Gold certified building (Leadership in Energy and Environmental Design), which is a U.S.
+Added: Green Building Council certification.
+Added: ◦ The Herndon, VA corporate office is located in a building that is benchmarked within the ENERGY STAR program, which is a joint program of the U.S.
+Added: Environmental Protection Agency and the U.S.
+Added: Department of Energy focused on protecting the environment through energy efficient products and practices.
+Added: ◦ SEI is investing in energy-saving interior design options, including updated lighting packages with more efficient LED lighting;
+Added: occupancy sensors to reduce energy consumption in areas that are not being used;
+Added: and programmable heating and cooling systems that will run only during operating hours.
+Added: ◦ Within campus locations, many property management teams are equipping spaces with energy-saving features including more efficient LED lighting, motion sensor lighting, and energy efficient HVAC systems.
+Added: ◦ As a provider of online education, data centers are a critical component of business operations;
+Added: one of SEI’s largest power usages from a data center is from a data center powered entirely by renewable wind energy.
+Added: • Reducing greenhouse gas emissions
+Added: ◦ In an effort to focus on alternative, green-commuting options, employees are encouraged to consider public transportation;
+Added: for employees in Minneapolis, MN, SEI covers a portion of public transit costs as an employee benefit.
+Added: ◦ Vehicle charging stations have been installed at the corporate office in Herndon, VA to support employees that choose to utilize or purchase alternative fuel vehicles.
+Added: ◦ Many campus city locations are located near mass transportation options.
+Added: • Reducing water usage
+Added: ◦ Our Herndon, VA and Minneapolis, MN corporate offices and certain campus locations use water efficient fixtures to decrease the amount of water usage.
+Added: • Reducing waste generation from business operations
+Added: ◦ SEI has a national contract with a document management company which provides corporate and campus locations with shredding bins on-site to allow sensitive business materials to be disposed of securely and recycled.
+Added: ◦ The Herndon, VA and Minneapolis, MN corporate offices have recycling bins in breakrooms to encourage employees to recycle products, and many campus facilities also have recycling programs.
+Added: • Additional efforts to reduce environmental impacts
+Added: ◦ Green cleaning products are utilized at both the Herndon, VA and Minneapolis, MN corporate offices to reduce impacts to the environment.
+Added: ◦ Within certain campus locations, janitorial companies also use green cleaning products to reduce impacts to the environment.
Information About Our Executive Officers
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The regulations, standards, and policies of these regulatory agencies are subject to frequent change.
−Removed: Hackbright Academy is subject to certain state regulatory requirements, but is not accredited and does not participate in Title IV programs.
We cannot predict the actions that the Administration, Congress, accreditors, or states may take or their effect on Strayer University, Capella University, or the Company.
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Capella University is also considered to be a single institution of higher education.
−Removed: On October 11, 2017, the Department and Strayer University executed a new Program
−Removed: Participation Agreement, approving Strayer University’s continued participation in Title IV programs with full certification through June 30, 2021.
−Removed: Strayer University's application for re-certification must be submitted by March 30, 2021, and Strayer intends to file the application prior to the deadline.
+Added: On December 13, 2021, the Department and Strayer University executed a new Program Participation Agreement, approving Strayer University’s continued participation in Title IV programs with full certification through September 30, 2025.
As a result of the August 1, 2018 merger, Capella University experienced a change of ownership, with the Company as its new owner.
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In order for institutions to be eligible to participate in federal student financial assistance programs, they must be accredited by an institutional accreditor recognized by the Secretary of Education.
−Removed: On November 1, 2019, after a negotiated rulemaking and public comment process, the Department of Education amended its regulations governing the recognition of accrediting agencies, effective July 1, 2020 (the "State Authorization and Accreditation final rules").
−Removed: The final regulations revise in some respects the Department’s process for recognition and review of accrediting agencies, the criteria used by the Department to recognize accrediting agencies, and Department’s requirements for accrediting agencies in terms of their oversight of accredited institutions and programs.
−Removed: For example, the rule allows accreditors to have alternative standards, policies, and procedures in the interest of innovation or to address undue hardship to students, provided certain criteria are met.
+Added: On November 1, 2019, after a negotiated rulemaking and public comment process, the Department of Education amended its regulations governing the recognition of accrediting agencies, effective July 1, 2020 (the “State Authorization and Accreditation final rule”).
+Added: The final regulations revise in some respects the Department’s process for recognition and review of accrediting agencies, the criteria used by the Department to recognize accrediting agencies, and the Department’s requirements for accrediting agencies in terms of their oversight of accredited institutions and programs.
These and other changes may affect the accrediting agencies’ treatment of the institutions under their jurisdiction.
+Added: For example, the rule allows accreditors to have alternative standards, policies, and procedures in the interest of innovation or to address undue hardship to students, provided certain criteria are met.
+Added: The rule also repeals the strict geographic scope of institutional accreditors.
+Added: Under prior practice, various accrediting agencies adopted a Policy Statement on Evaluation of Institutions Operating Interregionally (first developed in 2000), which provided that an institution’s “home” regional accreditor and the “host” regional accreditor would cooperate to evaluate an institution that delivers education at a physical site in the host accreditor’s region.
+Added: Now, this policy statement is, for the most part, moot.
+Added: However, different institutional accreditors have treated the policy statement differently.
+Added: Capella’s institutional accreditor, HLC, has continued to demonstrate deference to the policy statement while Strayer’s institutional accreditor, Middle States, has withdrawn the corresponding internal policy.
The Higher Education Act charges the National Advisory Committee on Institutional Quality and Integrity (“NACIQI”) with recommending to the Secretary of Education which accrediting or state approval agencies should be recognized as reliable authorities for judging the quality of post-secondary institutions and programs.
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The University’s period of accreditation by Middle States extends into 2025.
−Removed: Beginning in 2013, Middle States undertook a review of its accreditation standards and, in June 2014, approved revised accreditation standards, with subsequent editorial clarifications.
−Removed: The new standards are effective for all institutions that had self-studies due beginning with the 2017-2018 academic year.
In 2016, Middle States provided that reaccreditation for all of its institutions will be for a period of eight years (rather than ten, as previously was the case) and that institutions will be required to submit annual reports on student achievement and financial sustainability.
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Such changes include, but are not limited to, educational programs at different levels or different subject areas, certain contractual arrangements with other institutions providing a portion of an educational program, establishment or closure of additional locations and branch campuses, and changes in ownership or control.
−Removed: In 2000, the agencies that accredit higher education institutions in various regions of the United States adopted a Policy Statement on Evaluation of Institutions Operating Interregionally.
−Removed: Under that policy, both the home regional accreditor and the host regional accreditor cooperated to evaluate an institution that delivers education at a physical site in the host accreditor’s region.
−Removed: Given the recent changes in federal law repealing the strict geographic scope of institutional accreditors, this policy statement is, for the most part, moot.
−Removed: However, different institutional accreditors have treated the policy statement differently.
−Removed: Capella’s institutional accreditor, HLC, has continued to demonstrate deference to the policy statement while Strayer’s institutional accreditor, Middle States, has withdrawn the corresponding internal policy.
In addition to institutional accreditation, Strayer University has obtained specialized or programmatic accreditation, or professional recognition, from the following organizations for specific programs:
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Capella University
−Removed: Capella University has been institutionally accredited since 1997 by the Higher Learning Commission, an institutional accrediting agency recognized by the Secretary of Education that accredits degree-granting public and private colleges and universities in its region (Arizona, Arkansas, Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, New Mexico, North Dakota, Ohio, Oklahoma, South Dakota, West Virginia, Wisconsin, and Wyoming).
−Removed: The Higher Learning Commission is the same accrediting agency that accredits such universities as Northwestern University, the University of Chicago, the University of Minnesota and other degree-granting public and private colleges and universities in its region.
+Added: Capella University has been institutionally accredited since 1997 by the Higher Learning Commission, a higher education institutional accrediting agency recognized by the Secretary of Education that accredits degree-granting public and private colleges and universities in its region (Arizona, Arkansas, Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, New Mexico, North Dakota, Ohio, Oklahoma, South Dakota, West Virginia, Wisconsin, and Wyoming).
As a result of the State Authorization and Accreditation final rules, the Higher Learning Commission may also conduct accrediting activities in any other geographic region within or outside of the United States without regard to its specified region.
+Added: The Higher Learning Commission is the same accrediting agency that accredits such universities as Northwestern University, the University of Chicago, the University of Minnesota and other degree-granting public and private colleges and universities in its region.
In January 2015, Capella University’s accreditation with the Higher Learning Commission was reaffirmed.
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The Higher Learning Commission is continuously developing new standards and approval processes under which it evaluates programs and institutions.
−Removed: Consistent with that approach, the Higher Learning Commission in August 2016 adopted policy changes which include giving the Commission more discretion to designate institutions to be in "financial distress” or under "government investigation.” Receipt of these designations could affect future accreditation status and eligibility for Title IV aid under the Department of Education’s “financial responsibility” triggers.
+Added: Consistent with that approach, the Higher Learning Commission's current policies include giving the Commission more discretion to designate institutions to be in "financial distress” or under "government investigation.” Receipt of these designations could affect future accreditation status and eligibility for Title IV aid under the Department of Education’s “financial responsibility” triggers.
While the Company believes its strong reputation and compliance record will continue to place Capella University in favorable standing, there is sufficient breadth and discretion within the policy that government investigation, litigation, or financial or other circumstances could result in an impact to our business from the application of the policies.
−Removed: In addition, the Higher Learning Commission enacted policy changes, effective September 1, 2019, that mandated certain recruitment, admissions and related institutional practices, as well as guidelines for shared-services relationships.
+Added: In addition, the Higher Learning Commission enacted policy changes, effective September 2019, that mandate certain recruitment, admissions and related institutional practices.
In addition to institutional accreditation, Capella University has obtained specialized or programmatic accreditation, or professional recognition, for specific programs including from the following organizations:
8 unchanged sentences
Project Management Institute - Global Accreditation Center for Project Management;
−Removed: The BSN, MSN, and DNP degree programs at Capella University are accredited by the Commission on Collegiate Nursing Education.
+Added: The Bachelor of Science in Nursing, Master of Science in Nursing, and Doctor of Nursing Practice degree programs at Capella University are accredited by the Commission on Collegiate Nursing Education.
Shared-Services Agreements
Strategic Education, Inc.
−Removed: has entered into shared-services agreements with both U.S.
−Removed: Universities to provide certain services, including but not limited to finance, legal, human resources, information technology, financial aid, and marketing.
+Added: has entered into shared-services agreements with both Strayer University and Capella University to provide certain services, including but not limited to finance, legal, human resources, information technology, financial aid, and marketing.
The services are governed by Master Services Agreements, which provide, among other things, for oversight of the services by the governing board of each University.
−Removed: The Company continues to look for additional opportunities to provide shared services to the two Universities, and believes that the agreements meet all regulatory and accreditation standards, including the Higher Learning Commission policy discussed above.
+Added: The Company continues to look for additional opportunities to provide shared services to the two universities, and believes that the agreements meet all regulatory and accreditation standards.
State Education Licensure
4 unchanged sentences
Strayer University is subject to extensive regulation in each jurisdiction in which campuses are located, including in 2021:
−Removed: Alabama, Arizona, Arkansas, Delaware, Florida, Georgia, Louisiana, Maryland, Mississippi, New Jersey, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia, and Washington, D.C.
+Added: Alabama, Arkansas, Delaware, Florida, Georgia, Louisiana, Maryland, Mississippi, New Jersey, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia, and Washington, D.C.
Capella University is registered as a private institution with the Minnesota Office of Higher Education pursuant to Minnesota Statute sections 136A.61-131A.71, as required for most post-secondary private institutions that grant degrees at the associate level or above in Minnesota, and as required by the Higher Education Act to participate in Title IV programs.
2 unchanged sentences
State laws and regulations affect our operations and may limit our ability to introduce new and existing educational programs or establish new campuses.
−Removed: On October 29, 2010, the Department of Education adopted new regulations, effective July 1, 2011, that set new requirements on states for their authorization of schools for purposes of Title IV eligibility.
+Added: On October 29, 2010, the Department of Education adopted regulations, effective July 1, 2011, that set requirements on states for their authorization of schools for purposes of Title IV eligibility.
We believe that every state above in which Strayer University and Capella University are authorized has processes in place that comply with these requirements.
−Removed: Hackbright Academy is licensed to operate in the State of California by the Bureau for Private Post-secondary Education (“BPPE”).
−Removed: DevMountain programs are approved in Utah and Texas.
In the fall of 2019, Devmountain merged into Strayer University.
+Added: In the summer of 2021, Hackbright Academy merged into Strayer University.
Licensure of Online Programs
2 unchanged sentences
New laws, regulations, or interpretations related to doing business over the internet could increase the Universities’ cost of doing business, affect the Universities’ ability to increase enrollments and revenues, or otherwise have a material adverse effect on our business.
+Added: Various regulations regarding state authorization of distance education have been issued in recent years.
On December 19, 2016, the Department issued final regulations addressing state authorization of distance education, which became effective on May 26, 2019.
−Removed: These regulations include, among other things, the requirement that an institution offering Title IV-eligible distance education or correspondence courses be authorized by each state in which enrolled students reside, if such authorization is required by the state.
−Removed: Institutions may obtain such authorization directly from the state or (except in California) through a state authorization reciprocity agreement.
−Removed: A state authorization reciprocity agreement is defined as an
−Removed: agreement between two or more states that authorizes an institution located and legally authorized in a state covered by the agreement to provide post-secondary education through distance education or correspondence courses to students in other states covered by the agreement and does not prohibit a participating state from enforcing its own laws with respect to higher education.
−Removed: The regulations also require institutions to document the state process for resolving complaints from students enrolled in programs offered through distance education or correspondence courses for each state in which such students reside.
−Removed: In addition, the regulations require an institution to provide public and individualized disclosures to enrolled and prospective students regarding its programs offered solely through distance education or correspondence courses.
+Added: These regulations included, among other things, the requirement that an institution offering Title IV-eligible distance education or correspondence courses be authorized by each state in which enrolled students reside, if such authorization is required by the state.
+Added: Institutions could obtain such authorization directly from the state or (except in California) through a state authorization reciprocity agreement.
+Added: The regulations defined a state authorization reciprocity agreement as an agreement between two or more states that authorizes an institution located and legally authorized in a state covered by the agreement to provide post-secondary education through distance education or correspondence courses to students in other states covered by the agreement and does not prohibit a participating state from enforcing its own laws with respect to higher education.
+Added: The regulations also required institutions to document the state process for resolving complaints from students enrolled in programs offered through distance education or correspondence courses for each state in which such students reside.
+Added: In addition, the regulations required an institution to provide public and individualized disclosures to enrolled and prospective students regarding its programs offered solely through distance education or correspondence courses.
The public disclosures would include state authorization for the program or course, the process for submitting complaints to relevant states, any adverse actions by a state or accrediting agency related to the distance education program or correspondence course within the past five years, refund policies specific to the state, and applicable licensure or certification requirements for a career that the program prepares a student to enter.
−Removed: An institution must disclose directly to all prospective students if a distance education or correspondence course does not meet the licensure or certification requirements for a state.
−Removed: An institution must disclose to each current and prospective student when an adverse action is taken against a distance education or correspondence program and any determination that a program ceases to meet licensure or certification requirements.
−Removed: If an institution’s distance education program is found not to be in compliance, the institution may lose its ability to award Title IV funds for that distance education program.
+Added: An institution was required to disclose directly to all prospective students if a distance education or correspondence course did not meet the licensure or certification requirements for a state.
+Added: An institution was also required to disclose to each current and prospective student when an adverse action was taken against a distance education or correspondence program and any determination that a program ceased to meet licensure or certification requirements.
+Added: If an institution’s distance education program was found not to be in compliance with the regulations, the institution could lose its ability to award Title IV funds for that distance education program.
On November 1, 2019, the Department released final regulations on accreditation and state authorization of distance education, which became effective July 1, 2020.
−Removed: The rules maintain the requirement from the 2016 rule that institutions offering post-secondary education through distance education or correspondence courses to students located in a state in which the institution is not located must meet state requirements in that state or participate in a state authorization reciprocity agreement.
+Added: The rules maintain the requirement from the 2016 rule that institutions offering post-secondary education through distance education or correspondence courses to students located in a state in which the institution is not located meet state requirements in that state or participate in a state authorization reciprocity agreement.
In addition, an institution must make disclosures readily available to enrolled and prospective students regarding whether programs leading to professional licensure or certification meet state educational requirements.
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Additionally, the rules created new definitions for certain terms including “academic engagement” and “regular and substantive interaction” to provide more clarity regarding Title IV requirements for distance education programs.
−Removed: The final rule will become effective July 1, 2021, with the option for early implementation.
−Removed: Both Capella University and Strayer University opted to early implement the final rules in December 2020.
−Removed: Beginning July 1, 2017, California required out-of-state private post-secondary educational institutions that offer distance education to California residents to register with the BPPE.
+Added: The final rule became effective July 1, 2021, with the option for early implementation.
+Added: Both Strayer University and Capella University opted to early implement the final rules in December 2020.
+Added: Beginning July 1, 2017, California required out-of-state private post-secondary educational institutions that offer distance education to California residents to register with the state's Bureau for Private Postsecondary Education (“BPPE”).
Strayer University and Capella University have filed BPPE registration applications and received confirmation of the registration.
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• Whether the institution and the program were approved by the state in which the graduate seeks licensure, or by a professional association;
−Removed: • Whether the program from which the learner graduated and the curriculum completed meets all state requirements;
+Added: • Whether the program from which the student graduated and the curriculum completed meets all state requirements;
• Whether the institution and/or the specific program is accredited.
−Removed: Professional licensure requirements can vary by state and may change over time.
−Removed: Capella University has a team dedicated to professional licensure that works directly with learners.
−Removed: The licensure team develops and maintains extensive resources to inform learners of unique state licensing requirements prior to enrollment and throughout their program, including delivering direct disclosures to students in licensure-track programs as required by the U.S.
+Added: Professional licensure requirements vary by state and may change over time.
+Added: Capella University has a team dedicated to professional licensure that works directly with students.
+Added: The licensure team develops and maintains extensive resources to inform students of unique state licensing requirements prior to enrollment and throughout their program, including delivering direct disclosures to students in licensure-track programs as required by the U.S.
Department of Education.
−Removed: The University’s catalog and websites also describe the requirements for obtaining professional licensure, paired with specific disclaimers that reiterate learner responsibility for licensure outcomes.
+Added: The University’s catalog and websites also describe the requirements for obtaining professional licensure, paired with specific disclaimers that reiterate student responsibility for licensure outcomes.
Capella’s licensure team works directly with licensing authorities to try to resolve barriers to licensure for its alumni.
The team also assists alumni with exploring alternative options to achieve licensure, including completing additional coursework at Capella or at another institution.
−Removed: Capella University makes no representation, warranty or guarantee that successful completion of the course of study will result in the learner obtaining the necessary licensure or certification.
−Removed: Compliance with state or professional licensure or certification requirements is the learner’s sole responsibility.
+Added: Capella University makes no representation, warranty or guarantee that successful completion of the course of study will result in the student obtaining the necessary licensure or certification.
+Added: Compliance with state or professional licensure or certification requirements is the student’s sole responsibility.
Strayer University and Capella University are approved by appropriate authorities for the education of active duty military personnel and qualifying family members, veterans and members of the selected reserve and their spouses and dependents, as well as for the rehabilitation of veterans.
6 unchanged sentences
Financing Student Education
−Removed: Students finance their education at Strayer University and Capella University in a variety of ways, and historically about three quarters of students participated in one or more Title IV programs.
+Added: Students finance their education at Strayer University and Capella University in a variety of ways, and historically about 75% of students participated in one or more Title IV programs.
Many financial aid programs are designed to assist eligible students whose financial resources are inadequate to meet the cost of education.
6 unchanged sentences
Department of Defense (“DOD”), and various private organizations.
−Removed: Eligible students at Strayer University may also participate in educational assistance programs
−Removed: administered by the Commonwealth of Pennsylvania, the State of Florida, the State of Alabama, and the State of Vermont.
+Added: Eligible students at Strayer University may also participate in educational assistance programs administered by the Commonwealth of Pennsylvania, the State of Florida, and the State of Vermont.
Some Capella University students may qualify to participate in the Minnesota GI Bill program or the Minnesota Indian Scholarship program.
7 unchanged sentences
Additionally, the bill will restore VA education benefits to students who were enrolled in schools that closed after January 2015 if their credits did not transfer.
−Removed: On January 5, 2021, President Trump signed into law the Veterans Health Care and Benefits Improvement Act of 2020, which expands student veterans’ protections.
+Added: On January 5, 2021, former President Trump signed into law the Veterans Health Care and Benefits Improvement Act of 2020, which expands student veterans’ protections.
Among other things, the legislation requires a risk-based review of schools if an institution is operating under Heightened Cash Monitoring 2, under provisional approval status by the Department of Education, subject to any punitive action by a federal or state entity, facing the loss or risk of loss of accreditation, or has converted from for-profit to non-profit status.
6 unchanged sentences
and prohibiting more than three unsolicited recruiting contacts.
−Removed: The legislation will require guidance from the Department of Veterans Affairs, and is effective August 21, 2021.
+Added: In 2021, Congress also passed, and the President signed into law, two related technical corrections bills that amended certain provisions of the Veterans Health Care and Benefits Improvement Act of 2020:
+Added: the Training in High-demand Roles to Improve Veteran Employment ("THRIVE") Act and the Responsible Education Mitigating Options and Technical Extensions ("REMOTE") Act.
Strayer University and Capella University participate in DOD military tuition assistance programs under Memoranda of Understanding (“MOU”).
26 unchanged sentences
Under the agreement, the institution agrees to follow the Department’s rules and regulations governing Title IV programs.
−Removed: On October 11, 2017, the Department and Strayer University executed a new Program Participation Agreement, approving Strayer University’s continued participation in Title IV programs with full certification through June 30, 2021.
+Added: On December 13, 2021, the Department and Strayer University executed a new Program Participation Agreement, approving Strayer University’s continued participation in Title IV programs with full certification through September 30, 2025.
On January 18, 2019, consistent with standard procedure upon a Title IV institution’s change of ownership, the Department and Capella University executed a new Program Participation Agreement, approving Capella University’s continued participation in Title IV programs with provisional certification through December 31, 2022.
4 unchanged sentences
Should the Department of Education revoke eligibility during the provisional period, the institution may request reconsideration, and the Secretary of Education’s decision whether or not revocation is warranted constitutes final agency action.
−Removed: Strayer University is operating under full certification.
+Added: Strayer University is
+Added: operating under full certification.
Consistent with standard procedure following a change of control, Capella University is operating under provisional certification with no conditions other than the customary conditions described above.
+Added: The Department of Education is currently in the process of developing new regulations regarding, among other things, requirements of institutions that are provisionally certified as part of the Institutional and Programmatic Eligibility negotiated rulemaking.
+Added: Meetings of this negotiated rulemaking committee are scheduled to occur January-March 2022.
Administrative Capability
3 unchanged sentences
(2) have cohort default rates below specified levels;
−Removed: (3) have acceptable methods for defining and measuring the satisfactory academic progress of its learners;
+Added: (3) have acceptable methods for defining and measuring the satisfactory academic progress of its students;
(4) have various procedures in place for safeguarding federal funds;
4 unchanged sentences
• Require the repayment of Title IV funds;
−Removed: • Transfer the institution from the Department of Education’s advance system of receiving Title IV program funds to a cash monitoring or reimbursement system, under which an institution must disburse its own funds to learners and document the learners’ eligibility for Title IV program funds before receiving such funds from the Department of Education;
+Added: • Transfer the institution from the Department of Education’s advance system of receiving Title IV program funds to a cash monitoring or reimbursement system, under which an institution must disburse its own funds to students and document the students’ eligibility for Title IV program funds before receiving such funds from the Department of Education;
• Place the institution on provisional certification status;
• Commence a proceeding to impose a fine or to limit, suspend or terminate the participation of the institution in Title IV programs.
+Added: The Department of Education is currently in the process of promulgating new regulations regarding, among other things, administrative capability criteria as part of the Institutional and Programmatic Eligibility negotiated rulemaking.
+Added: Meetings of this negotiated rulemaking committee are scheduled to occur January-March 2022.
Financial Responsibility
9 unchanged sentences
We have applied the financial responsibility standards to our financial statements as of and for the year ended December 31, 2021, and based on our calculated composite score and other relevant factors, we believe we meet the Department of Education’s financial responsibility standards.
−Removed: On November 1, 2016, the Department of Education released a new regulation, under which an institution may no longer be considered financially responsible if one or more of a list of “triggering events” occurs.
+Added: On November 1, 2016, the Department of Education released a new regulation, which after a series of delays became effective as of October 16, 2018, under which an institution may no longer be considered financially responsible if one or more of a list of “triggering events” occurs.
The Department of Education will automatically determine that an institution is not financially responsible if, among other things, the institution receives certain warnings from the SEC, fails to file required reports in a timely manner, or has a cohort default rate of 30% or greater for each of the two most recent official calculations.
−Removed: The Department of Education will also determine that an institution is not financially responsible if certain triggering events, such as a lawsuit against the institution, an accrediting agency’s requirement that the institution submit a teach-out plan, or potential loss of Title IV eligibility for gainful employment programs, result in the institution’s recalculated composite score to be less than 1.0.
+Added: The Department of Education will also determine that an institution is not financially responsible if certain triggering events, such as a lawsuit against the institution, an accrediting agency’s requirement that the institution submit a teach-out plan, or
+Added: potential loss of Title IV eligibility for gainful employment programs, result in the institution’s recalculated composite score to be less than 1.0.
The Department of Education may also invoke certain “discretionary” triggering events, such as citation by a state agency or accrediting agency for failure to satisfy the agency’s standards, to determine that an institution is not financially responsible.
An institution determined not to be financially responsible because of one or more triggering events may be required to issue an irrevocable letter of credit for not less than 10% of the Title IV funds received by the school for the most recently completed fiscal year and/or will be issued a Provisional Program Participation Agreement.
−Removed: The Department announced a series of delays to the implementation of the regulation until July 1, 2019, but following a judge’s decision in related litigation, the regulations went into effect as of October 16, 2018.
On August 30, 2019, as part of the final Borrower Defense to Repayment (“BDTR”) regulations, the Department of Education made changes to the financial responsibility requirements, including establishing a more limited set, as compared to the 2016 rule, of mandatory and discretionary triggering events that have, or could have, a materially adverse impact on the institution’s financial condition and therefore warrant financial protection.
2 unchanged sentences
The financial responsibility changes became effective July 1, 2020.
+Added: The Department of Education is currently in the process of promulgating new regulations regarding, among other things, financial responsibility as part of the Institutional and Programmatic Eligibility negotiated rulemaking.
+Added: Meetings of this negotiated rulemaking committee are scheduled to occur January-March 2022.
Student Loan Defaults
12 unchanged sentences
Strayer University and Capella University’s official three-year cohort default rates for 2016, 2017, and 2018, as well as the average official three-year cohort default rates for proprietary institutions nationally, were as follows:
−Removed: Strayer University Capella University National Average
+Added: University Capella
+Added: University National Average
2016 10.4 % 6.8 % 15.2 %
4 unchanged sentences
Former Department of Education Secretary Betsy DeVos extended these student loan flexibilities through January 31, 2021.
−Removed: President Biden subsequently extended the period through September 30, 2021.
+Added: President Biden subsequently extended the period through May 1, 2022.
While it is too early to know the entirety of the impact that COVID and COVID-related repayment flexibility will have on the cohort default rate, the Company expects that the next one or more cohort years will be affected.
10 unchanged sentences
The key components of non-Title IV revenue for Strayer University and Capella University are individual student payments, employer tuition reimbursement payments, veterans’ education benefits, military tuition assistance, vocational rehabilitation funds, private loans, state grants, and scholarships.
−Removed: Certain members of Congress have proposed to revise the 90/10 Rule to count DOD tuition assistance and veterans’ education benefits along with Title IV revenue toward the 90% limit
−Removed: and to reduce the limit to 85% of total revenue.
−Removed: In the context of Higher Education Act reauthorization, defense bills and appropriations bills, other members of Congress recently have proposed legislation that would eliminate the 90/10 Rule.
−Removed: We cannot predict whether or how the recent changes in Administration and Congress will affect the 90/10 Rule.
+Added: On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021, which included a change to the 90/10 methodology to include all federal funding.
+Added: Under the legislation, these revisions to the 90/10 Rule would apply to institutional fiscal years beginning on or after January 1, 2023.
+Added: The Department of Education is currently in the process of promulgating new regulations regarding, among other things, the 90/10 rule as part of the Institutional and Programmatic Eligibility negotiated rulemaking.
+Added: Meetings of this negotiated rulemaking committee are scheduled to occur January-March 2022.
+Added: In addition, certain members of Congress have proposed to revise the 90/10 Rule to reduce the limit on federal funding to 85% of total revenue.
+Added: In the context of Higher Education Act reauthorization, defense bills and appropriations bills, other members of Congress have proposed legislation that would eliminate the 90/10 Rule.
+Added: We cannot predict whether or how legislative or regulatory changes will affect the 90/10 Rule.
Restrictions on Incentive Compensation
24 unchanged sentences
On July 1, 2019, the Department of Education released final gainful employment regulations, which contain a full repeal of the 2015 Regulations, including all debt measures, reporting, disclosure, and certification requirements, effective July 1, 2020.
−Removed: We cannot predict if recent changes to the administration and Congress will result in the revival of gainful employment regulations or if a similar version may be reenacted.
+Added: On December 8, 2021, the Department of Education announced its intention to establish a negotiated rulemaking committee to prepare proposed regulations for, among other topics, gainful employment, via the Institutional and Programmatic Eligibility rulemaking.
+Added: Meetings of the negotiated rulemaking committee are scheduled to occur January-March 2022.
Return of Federal Funds
17 unchanged sentences
a statement, act, or omission by an eligible school to a borrower (a) that is false, misleading, or deceptive, (b) that was made with knowledge of its false, misleading, or deceptive nature or with a reckless disregard for the truth, and (c) that directly and clearly relates to either (1) enrollment or continuing enrollment at the institution, or (2) the provision of educational services for which the loan was made.
+Added: On August 10, 2021 the Department of Education announced its intention to establish a rulemaking committee to prepare proposed regulations on, among other things, Borrower Defense to Repayment, including a new definition of misrepresentation.
+Added: Negotiated rulemaking committee meetings completed in December 2021 with no consensus reached on the topic.
+Added: As a result, the Department of Education has discretion to propose a new rule for public comment.
Borrower Defenses to Repayment
6 unchanged sentences
In addition, the regulation permits the Department to grant relief to an individual or group of individuals, including individuals who have not applied to the Department seeking relief.
−Removed: If a defense is successfully raised, the Department has discretion to initiate action to collect from an institution the amount of losses incurred based on the borrower
+Added: If a defense is successfully raised, the Department has discretion to initiate action to collect from an institution the amount of losses incurred based on the borrower defense.
The 2016 BDTR Rule also amends the rules concerning discharge of federal student loans when a school or campus closes and prohibits pre-dispute arbitration agreements and class action waivers for borrower defense-type claims.
18 unchanged sentences
If the Secretary discharges a loan in whole or in part, the Department of Education may require the school to repay the amount of the discharged loan.
−Removed: We cannot predict whether or how the recent changes in Administration and Congress will affect the borrower defense to repayment rules.
+Added: On August 10, 2021 the Department of Education announced its intention to establish a rulemaking committee to develop proposed regulations on, among other things, Borrower Defense to Repayment.
+Added: Negotiated rulemaking committee meetings completed in December 2021 with no consensus reached on the topic.
+Added: As a result, the Department of Education has discretion to propose a new rule for public comment.
Third-Party Servicers
5 unchanged sentences
for processing stipends due to students.
−Removed: For loan default prevention, Strayer University and Capella University contract with i3 Group, LLC and ECMC Solutions.
+Added: For loan default prevention, Strayer University and Capella University contract with Student Connections.
Strayer University and Capella University also contract with the National Student Clearinghouse to report enrollment status updates to the National Student Loan Data System.
7 unchanged sentences
Most states require approval before institutions can add new programs, campuses, or teaching locations.
−Removed: Middle States requires its accredited institutions to notify it in advance of implementing new programs or additional locations as defined by Middles States, which may require additional approval.
+Added: Middle States requires its accredited institutions to notify it in advance of implementing new programs or additional locations as defined by Middle States, which may require additional approval.
At its discretion, Middle States may also conduct site visits to additional locations to evaluate whether accredited institutions that experience rapid growth in the number of additional locations, among other reasons, maintain educational quality.
27 unchanged sentences
The CARES Act suspended payments and interest accrual for Federal Family Education Loans and Direct Loans until September 30, 2020.
−Removed: Subsequent executive action by the previous and current administrations have extended these suspensions until September 30, 2021.
+Added: Subsequent executive action by the previous and current administrations have extended these suspensions until May 1, 2022.
The Department issued several guidance documents outlining and interpreting these changes.
Additionally, the CARES Act established a $12.6 billion Higher Education Emergency Relief Fund (“HEERF”).
−Removed: While the Department allocated HEERF funding for Strayer, the university did not accept its allocation.
+Added: While the Department allocated CARES Act HEERF funding for Strayer, the university did not accept its allocation.
On December 27, 2020, Congress passed the omnibus Consolidated Appropriations Act, 2021 (“CAA”), which included several education-related provisions.
2 unchanged sentences
The CAA also appropriated an additional $22.7 billion for the HEERF to be distributed to higher education institutions.
−Removed: While the Department allocated HEERF funding for Strayer and Capella, to date neither university accepted its allocation.
+Added: In January 2021, the Department released a table of institutional allocation of funds which indicated that Capella University was eligible for $328,602 and Strayer University was eligible for $5,831,606, all of which was disbursed to students with the highest need, in the form of direct grants in spring 2021.
+Added: On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (“ARP”), which included $40 billion in emergency funding for higher education.
+Added: Capella University disbursed $184,323 to students of the highest need in June 2021, and Strayer University disbursed $2,554,682 to students of the highest need in July 2021.
+Added: ARP also included an adjustment to the tax code by making any student loan debt discharged through 2025 tax-free, and an adjustment to the 90/10 rule.
+Added: The change includes all federal funding – not just Title IV funds – in the 90/10 calculation.
+Added: ARP’s 90/10 changes require the Department to issue regulations, with an effective date no earlier than institutional fiscal years beginning January 1, 2023.
+Added: On December 8, 2021 the Department of Education announced its intention to establish a rulemaking committee to develop proposed regulations on, among other things, the 90/10 rule via the Institutional and Programmatic Eligibility rulemaking.
+Added: Meetings of this negotiated rulemaking committee are scheduled to occur January-March 2022.
Other Regulations Governing Title IV Programs
10 unchanged sentences
The final rules became effective August 14, 2020.
−Removed: We cannot predict whether or how the recent changes in Administration and Congress will affect the Title IX rules.
+Added: On August 24, 2021, the Department of Education Office for Civil Rights issued guidance indicating it would cease enforcement of the rules’ prohibition against consideration of statements made by individuals failing to submit to cross-examination at a live hearing.
+Added: The Department of Education has conducted public hearings concerning its Title IX regulations and expects to issue a notice of proposed rulemaking for public comment in April 2022.
Students with Disabilities
Federal agencies, including the Department of Education and the Department of Justice, have considered or are considering how electronic and information technology should be made accessible to persons with disabilities.
−Removed: For example, Section 504 of
−Removed: the Rehabilitation Act of 1973 (“Section 504”) prohibits discrimination against a person with a disability by any organization that receives federal financial assistance.
+Added: For example, Section 504 of the Rehabilitation Act of 1973 (“Section 504”) prohibits discrimination against a person with a disability by any organization that receives federal financial assistance.
The Americans with Disabilities Act (“ADA”), prohibits discrimination based on disability in several areas, including public accommodations.
14 unchanged sentences
On February 9, 2021, Capella University received the Department’s Final Program Review Determination, which closed the Program Review without further action required on the part of Capella University.
+Added: On March 17, 2021, the Department informed Strayer University that it planned to conduct an announced, remote program review.
+Added: The review commenced on April 19, 2021 and covered the 2019-2020 and 2020-2021 federal student financial aid years.
+Added: On September 21, 2021, Strayer University received the Department’s Final Program Review Determination, which closed the Program Review without further action required on the part of Strayer University.
+Added: On October 8, 2021, the Department of Education announced establishment of an Office of Enforcement within the Department’s Office of Federal Student Aid, designed to strengthen oversight over and enforcement against postsecondary schools that participate in federal student loan, grant, and work-study programs.
+Added: The Office of Enforcement restores an office first established by the Department in 2016.
+Added: The Office of Enforcement will be comprised of four existing divisions:
+Added: Administrative Actions and Appeals Services Group, Borrower Defense Group, Investigations Group, and Resolution and Referral Management Group.
+Added: The Department intends the Office of Enforcement to coordinate with other state and federal partners, including the Department of Justice, Consumer Financial Protection Bureau, Federal Trade Commission, and state attorneys general.
Potential Effect of Regulatory Violations
12 unchanged sentences
The Department of Education’s recertification of an institution following a change of control will be on a provisional basis.
+Added: On December 8, 2021, the Department of Education announced its intention to establish a negotiated rulemaking committee to develop proposed regulations for, among other topics, issues related to changes of control, via the Institutional and Programmatic Eligibility rulemaking.
+Added: Meetings of this negotiated rulemaking committee are scheduled to occur January-March 2022.
Change in Ownership Resulting in a Change of Control
4 unchanged sentences
Additionally, both Middle States and the Higher Learning Commission will undertake a site visit to an institution that has undergone a change in ownership or control no later than six months after the change.
−Removed: Each state in which the institution operates may also have its own change in ownership approval processes.
+Added: Each state in which the institution operates may also have its own change in ownership
+Added: approval processes.
Additionally, SARA and its affiliated state portal agencies may require certain notifications or applications in relation to a change in ownership.
41 unchanged sentences
Congress reviews and determines appropriations for Title IV programs on an annual basis.
−Removed: Congress has appropriated funds for the Department of Education through September 30, 2021.
+Added: On February 18, 2022, the President signed the “Further Additional Extending Government Funding Act,” which provides fiscal year 2022 appropriations to Federal agencies through March 11, 2022.
A future government shutdown, particularly one that includes the Department of Education or appropriations for Title IV programs, could have a material adverse effect on our operations and financial condition.
8 unchanged sentences
Title IV regulations applicable to Strayer University and Capella University have been subject to frequent revisions, many of which have increased the level of scrutiny to which higher education institutions are subjected and have raised applicable standards.
+Added: Current Federal Rulemaking
+Added: On August 10, 2021, the Department announced its intention to establish the Affordability and Student Loans committee, to prepare proposed regulations to address the following topics:
+Added: borrower defense to repayment, misrepresentation, closed school discharges, discharges for borrowers with a total and permanent disability, discharges for false certification of student eligibility, loan repayment plans, interest capitalization, mandatory pre-dispute arbitration and prohibition of class action lawsuits provisions in institutions’ enrollment agreements and associated counseling about such arrangements, Pell Grant eligibility or prison education programs, and the Public Service Loan Forgiveness program.
+Added: The Department also announced the formation of a Prison Education Program Subcommittee.
+Added: Negotiations occurred in October-December 2021, with negotiators reaching consensus on total and permanent disability discharge, eliminating interest capitalization for nonstatutory capitalization events, false certification discharge and Pell Grant eligibility for prison education programs.
+Added: The committee failed to reach consensus on the remainder of the topics.
+Added: In the absence of consensus, the Department of Education has discretion to propose a rule for public comment.
+Added: Issue papers and redlines provided by the Department indicate the Department is
+Added: considering changes to borrower to defense to repayment regulations that include eliminating a limitations period on claims, making the group claims process the default process for loan relief, establishing the borrower defense application as a form of evidence, and revising the definition of misrepresentation.
+Added: On December 8, 2021, the Department announced its intention to establish the Institutional and Programmatic Eligibility committee, to prepare proposed regulations to address the following topics:
+Added: 90/10, ability to benefit, certification procedures for participating in Title IV programs, change of ownership and change in control of institutions of higher education, financial responsibility for participating institutions of higher education, gainful employment, and standards of administrative capability.
+Added: Meetings of this negotiated rulemaking committee are scheduled to occur January-March 2022.
+Added: We cannot predict the outcome of the negotiated rulemaking process.
College Affordability and Transparency Lists
10 unchanged sentences
In 2019, the Department of Education added new metrics to the College Scorecard, including information on non-degree institutions and data concerning student outcomes, including salary, at the program level.
+Added: The Department of Education continues to update data, metrics, and functionality of the College Scorecard.
Privacy and Data Security
8 unchanged sentences
These rights include the right to request details about the personal information a company has collected or shared and the ability to obtain copies of the personal information collected by the company, the ability to opt out of certain personal information sharing between companies, and the right to require that a company delete the personal information it maintains about the requesting individual.
−Removed: The CCPA likely applies to the Company as it is for-profit and has at least $25 million in annual revenues.
The California Attorney General oversees civil enforcement of the CCPA, which allows for civil penalties of up to $2,500 for each violation and up to $7,500 for each intentional violation.
−Removed: In addition, the CCPA imposes on companies an obligation to maintain reasonable security procedures and empowers individuals to bring
−Removed: private actions to recover damages if their personal information is subject to a security breach as a result of a company’s failure to maintain reasonable security practices.
+Added: In addition, the CCPA imposes on companies an obligation to maintain reasonable security procedures and empowers individuals to bring private actions to recover damages if their personal information is subject to a security breach as a result of a company’s failure to maintain reasonable security practices.
+Added: The California Privacy Rights Act, or CPRA, will expand the CCPA’s requirements when it becomes effective in 2023.
Collection of personal information outside the United States may subject companies to global privacy and data security laws.
43 unchanged sentences
It is a globally renowned and specialist provider of design and creative technology education with qualifications ranging from diplomas to postgraduate degrees.
−Removed: MDS also has access to New Zealand Government student finance where study loans are offered to students who are New Zealand citizens or ordinarily resident in New Zealand, subject to certain conditions.
+Added: also has access to New Zealand Government student finance where study loans are offered to students who are New Zealand citizens or ordinarily resident in New Zealand, subject to certain conditions.
Privacy and Data Security
7 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.