Strategic Education, Inc.
−Removed: (“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: 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.
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.
−Removed: 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: Our operations emphasize relationships through our Education Technology Services segment with employers to build employee education benefits programs that provide employees with access to affordable and industry relevant training, certificate, and degree programs.
We generated net revenue of $1.1 billion in 2022.
1 unchanged sentence
Acquisition of Torrens University and associated assets in Australia and New Zealand
−Removed: 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.
−Removed: 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.
−Removed: We believe ANZ represents an attractive portfolio of institutions with a similar focus on innovation, academic outcomes, improved affordability and career advancement as us.
−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.
−Removed: As of December 31, 2021, our reportable segments consisted of the following:
−Removed: Higher Education Segment
−Removed: Strayer University
−Removed: Founded in 1892, 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 physical campuses, predominantly located in the eastern United States, and online.
−Removed: Strayer University also offers an executive MBA online through the Jack Welch Management Institute (“JWMI”), which was acquired in December 2011.
−Removed: JWMI is a Top-25 Princeton Review-ranked online MBA program.
−Removed: Strayer University also offers non-degree web and mobile application development courses through Hackbright Academy (“Hackbright”) and Devmountain.
−Removed: 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.
−Removed: By offering its programs both online and in physical classrooms, Strayer University provides its working adult students with flexibility and convenience.
−Removed: Strayer University, with its online offerings, attracts students from around the country and throughout the world.
−Removed: Capella University
−Removed: 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.
−Removed: Capella University’s program offerings span the following primary disciplines:
−Removed: arts and sciences;
−Removed: business and technology;
−Removed: counseling and human services;
−Removed: nursing and health sciences;
−Removed: and public service leadership.
−Removed: 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.
−Removed: Capella University focuses on master's and doctoral degrees, with approximately 65% of its students enrolled in a master’s or doctoral degree program.
−Removed: 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: Australia/New Zealand Segment
−Removed: Founded in 2013, Torrens University is the only investor-funded University in Australia.
−Removed: Torrens University offers undergraduate, graduate, higher degree by research, and specialized degree courses primarily in five fields of study:
−Removed: business, design and creative technology, health, hospitality, and education.
−Removed: Courses are offered both online and on physical campuses.
−Removed: Torrens University is registered with the Tertiary Education Quality and Standards Agency (“TEQSA”), the regulator for higher education providers and universities throughout Australia, as an Australian University that is authorized to self-accredit its courses.
−Removed: Think Education is a vocational registered training organization and accredited higher education provider in Australia.
−Removed: 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 (“ASQA”), the regulator for vocational education and training organizations that operate in Australia.
−Removed: Media Design School is a globally recognized private tertiary institution for creative and technology qualifications in New Zealand.
−Removed: 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 (“NZQA”), the organization responsible for the quality assurance of non-university tertiary training providers.
−Removed: Education Technology Services Segment
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Industry Background
−Removed: The United States market for post-secondary education is large, fragmented, and competitive.
−Removed: According to the National Center for Education Statistics, the total number of post-secondary students enrolled as of the fall of 2020 was 19.4 million, reflecting a 10.4% decrease from record enrollment in the fall of 2010.
−Removed: Approximately 1.3 million of these students attended proprietary institutions.
−Removed: 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.
−Removed: Further, the COVID-19 pandemic has significantly reduced the number of students enrolled in post-secondary education institutions in recent years.
−Removed: 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 increased 5.3% in the fall of 2020 and declined 9.3% in the fall 2021.
−Removed: 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, 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.
−Removed: 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.
−Removed: Other trends that could positively affect demand for our programs include:
−Removed: • increasing demand by employers for certain types of professional and skilled workers;
−Removed: • growth in the number of high school graduates from 2.8 million in 1999-2000 to an estimated 3.7 million in 2021-2022, according to the National Center for Education Statistics;
−Removed: • the significant and measurable income premium and enhanced employment prospects attributable to post-secondary education;
−Removed: • a number of initiatives underway to reduce the cost of a post-secondary education;
−Removed: • continued demand from working adults for programs offered by accredited institutions.
−Removed: Prior to the COVID-19 pandemic and the corresponding closure of Australia's borders, the Australian higher education market experienced consistent growth.
−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 10 year period.
−Removed: The number of international students enrolled in Australian higher education institutions grew from 0.3 million in 2009 to 0.5 million in 2019.
−Removed: The Australian higher education market is expected to continue growing in the coming years, with a significant share of growth expected from international students.
−Removed: 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.
−Removed: The post-secondary education market is highly competitive, with no private or public institution holding a significant market share.
−Removed: Strayer University, Capella University, and Torrens University (the “Universities”) compete primarily with traditional public and private degree-granting accredited colleges and universities, other proprietary degree-granting accredited schools, and alternatives to higher education.
−Removed: In addition, we face competition from various non-traditional, credit-bearing and noncredit-bearing education programs, provided by proprietary, public, and not-for-profit providers, including massive open online courses offered worldwide without charge by traditional educational institutions and other direct-to-consumer education services.
−Removed: As the proportion of traditional colleges providing alternative learning modalities increases, we will face increasing competition for students from traditional colleges, including colleges with well-established reputations for excellence and colleges in states that offer various forms of “free college” programs.
−Removed: 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 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.
−Removed: Company Strengths
−Removed: We have a track record of providing practical and convenient education programs and solutions for working adults, employers, and recent high school graduates.
−Removed: 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.
−Removed: We believe the following strengths position us to capitalize on the demand for post-secondary education:
−Removed: • Focus on Innovation.
−Removed: 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.
−Removed: 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.
−Removed: As a combined Company, the Universities can leverage these transformational capabilities.
−Removed: • Consistent operating history.
−Removed: Strayer University, Capella University, and Torrens University have been in continuous operation since 1892, 1993, and 2013, respectively, and all three institutions have demonstrated an ability to operate consistently and grow profitably.
−Removed: The combined Company has continued this track record, with a broader, more diversified product offering, a balanced revenue mix, cost and revenue synergies, and greater scale.
−Removed: • Practical and diversified programs.
−Removed: We offer programs in practical areas of adult education.
−Removed: 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: 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.
−Removed: This program diversity helps us better meet the educational needs of students in the modern economy.
−Removed: • Focus on adults pursuing career-relevant degree and non-degree programs.
−Removed: We focus on serving adults who are pursuing undergraduate and graduate degrees as well as non-degree certificates and training programs that will help them advance their careers and employment opportunities.
−Removed: We provide high quality student support services such as advising, writing, tutoring and research support;
−Removed: administrative services;
−Removed: library services;
−Removed: financial aid counseling;
−Removed: and career counseling.
−Removed: Increasingly, we are leveraging data and analytics to create personalized experiences for our students, which are reflected in our early cohort persistence improvements and continued high student satisfaction.
−Removed: • 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 the student's convenience through our comprehensive online program offerings.
−Removed: • Attractive and convenient campus locations.
−Removed: Physical presences continue to be an important strength for us, notwithstanding the fact that the vast majority of academic activity occurs online.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: • Established brand names and alumni support.
−Removed: Strayer University and Capella University are established brand names in post-secondary adult education.
−Removed: 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 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.
−Removed: Company Strategy
−Removed: Our goal is to be a leading innovator and provider of career-relevant and meaningful education programs that prepare students for advancement in their careers and professional lives, and promote economic mobility.
−Removed: We have identified the following strategic priorities as key to achieving our goal:
−Removed: • Improve student success — Our success depends on the success of our students.
−Removed: The more we focus on helping our students succeed, the more likely it is that we will succeed.
−Removed: In order to improve student success, we must continue to hire outstanding faculty, produce high quality academic content, and employ cutting edge technology that enables us to deploy faculty and content in increasingly efficient and effective ways.
−Removed: • Enhance student experience — Our students are predominately working adults who are furthering their education in order to advance their careers and professional lives.
−Removed: Our students are busy with work and family responsibilities that leave little time for other endeavors.
−Removed: Thus, we make every effort to make all interactions with our students productive, and we are constantly looking for ways to serve them better.
−Removed: This initiative includes leveraging technology, including artificial intelligence and automation, to improve student support in the areas of advising, tutoring, registration, campus and online technology, and administration.
−Removed: 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, we have implemented various initiatives to make our programs more affordable.
−Removed: 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.
−Removed: The free courses earned are redeemable in one’s final academic year.
−Removed: 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: The Universities have also instituted various other tuition reductions and scholarships.
−Removed: 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.
−Removed: 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 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.
−Removed: • 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.
−Removed: 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.
−Removed: In addition to providing capital, the venture fund offers portfolio companies the opportunity to pilot technologies at our U.S.
−Removed: based universities and our coding boot camps, subject to compliance with applicable laws.
−Removed: We also continue to develop new programs and concentrations.
−Removed: 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.
−Removed: These relationships are an important source of corporate-funded enrollment for Strayer University and Capella University.
−Removed: 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.
−Removed: • 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.
−Removed: We strive to attract the best talent and then develop and retain them.
−Removed: We want to be known as an employer of choice and be a place where one can build a long-term career.
+Added: On November 3, 2020, we completed the acquisition of Torrens University and associated assets in Australia and New Zealand (“ANZ”).
+Added: ANZ includes Torrens University Australia, Think Education, and Media Design School, which together provide diversified student curricula to approximately 19,000 students.
+Added: As of December 31, 2022, our three reportable segments consisted of U.S.
+Added: Higher Education, Australia/New Zealand, and Education Technology Services.
Higher Education (“USHE”) Segment
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.
−Removed: USHE also offers non-degree web and mobile application development courses through Hackbright Academy and Devmountain, which are units of Strayer University.
+Added: USHE also offers non-degree web and mobile application development courses through Hackbright Academy (“Hackbright”) and Devmountain, which are units of Strayer University.
Student Profile
7 unchanged sentences
Associate’s 2,200 — 2,200 3 %
−Removed: 59 784 843 1 %
+Added: Certificate/Other 78 896 974 1 %
Total Students 36,661 41,401 78,062 100 %
−Removed: ___________________________________________________________
−Removed: * Other primarily comprised of students enrolled in certificate programs.
The USHE segment has a very diverse student population.
3 unchanged sentences
Strayer University
−Removed: 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.
−Removed: Strayer University is accredited by the Middle States Commission, a higher education institutional accrediting agency recognized by the Department of Education.
−Removed: By offering its programs both online and in physical classrooms, Strayer University provides its working adult students more flexibility and convenience.
+Added: Founded in 1892, Strayer University is an accredited institution of higher education that offers undergraduate and graduate degree programs in business, criminal justice, education, health services, information technology, and public administration, at physical campuses, predominantly located in the eastern United States, and online.
+Added: By offering its programs both online and in physical classrooms, Strayer University provides its working adult students with flexibility and convenience.
+Added: Strayer University also offers an MBA online through the Jack Welch Management Institute (“JWMI”), which was acquired in December 2011.
+Added: JWMI is a Top-10 Princeton Review-ranked online MBA program.
+Added: Strayer University also offers non-degree web and mobile application development courses through 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.
Strayer University offers business, information technology, and professional curricula to equip students with specialized and practical knowledge and skills for careers in business, industry, and government.
1 unchanged sentence
Strayer University regularly evaluates new programs and degrees to stay current with the needs of students and their employers.
+Added: Strayer University’s academic programs are primarily offered on a quarterly academic schedule, which generally coincides with calendar quarters.
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.
Strayer University students may enroll in courses at more than one campus and take some or all of their courses online.
+Added: All course modalities have the same academic requirements and content, and are taught by Strayer University faculty.
+Added: Throughout a course, faculty assess students, respond to inquiries, and interact with students to support their learning efforts.
Strayer University structures its curricula to allow students to advance sequentially from one learning level to another by applying credits earned in one program toward attainment of a more advanced degree.
1 unchanged sentence
This curriculum design provides students a level of competency and a measure of attainment in the event they interrupt their education or choose to work in their field of concentration prior to obtaining their final degree.
−Removed: Strayer University has been offering courses online since 1997.
−Removed: Currently, all students taking classes online do so in the asynchronous format.
−Removed: Students may take all of their courses online or take online courses in combination with classroom-based courses.
−Removed: A student taking classes online has the same admission and financial aid requirements, is subject to substantially the same policies and procedures, and receives the same student services and support as a student taking their course on-campus.
−Removed: Tuition for online courses is the same as campus-based courses.
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.
+Added: Strayer University’s faculty includes both full-time and part-time faculty members.
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.
3 unchanged sentences
Strayer University provides financial support for faculty members seeking to enhance their skills and knowledge through a professional development funding program that reimburses eligible faculty and deans for continuing their education and completing courses, seminars, and various programs that enhance their current credentials and knowledge base to improve their content expertise.
−Removed: Full-time faculty (and all other full-time employees) receive a 100% discount for all Strayer University courses.
Strayer University also conducts annual in-house faculty workshops in each discipline.
−Removed: We believe that Strayer University’s dedicated and capable faculty is one of the keys to its success.
Organization of Strayer University
Overall academic and business decisions of Strayer University, including review and approval of the annual financial budget, are directed by its Board of Trustees.
−Removed: The Board of Trustees consists of Dr.
−Removed: Beason, Chairwoman, and currently nine other members.
Strayer University’s By-Laws prescribe that a majority of members be independent from Strayer University and the Company to assure independent oversight of all academic programs and services.
−Removed: Of the ten members, six are independent.
−Removed: 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, 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 officers, including the Provost/Chief Academic Officer of Strayer University.
−Removed: The majority of Strayer University’s operations are centralized within the President’s Office or Strayer 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.
+Added: The Boards of Trustees of Strayer 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.
To identify potential students, Strayer University engages in a broad range of activities to inform working adults and their employers about the programs offered.
1 unchanged sentence
Direct response methods (direct, digital, and social media marketing) are used to generate inquiries from potential students.
−Removed: Information relevant to prospective students is published on the website, www.strayer.edu.
Strayer University maintains booths and information tables at various conferences and expos, as well as at transfer days at community colleges.
−Removed: Recommendations from our alumni network also maintain and enhance Strayer University’s reputation and promote its quality education.
+Added: Recommendations from its alumni network also maintain and enhance Strayer University’s reputation and promote its quality education.
Its business-to-business outreach efforts include personal telephone calls, distribution of information through corporate intranets and human resource departments, and on-site information meetings.
15 unchanged sentences
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.
−Removed: 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.
−Removed: 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.
+Added: One such program is the Graduation Fund, whereby qualifying students earn tuition credits that are redeemable in the final year of a student’s course of study if he or she successfully remains enrolled in the program.
+Added: In their final academic year, qualifying students will receive one free course for every three courses that the student successfully completed in prior years.
Career Development Services
4 unchanged sentences
Capella University
−Removed: 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.
−Removed: Capella University is accredited by the Higher Learning Commission, a higher education institutional accrediting agency recognized by the Department of Education.
+Added: Founded in 1993, Capella University is an online accredited institution of higher education that offers a variety of undergraduate and graduate degree programs, as well as certificate programs, in business, technology, health care administration, counseling, psychology, human services, education, social work, nursing, and health sciences, primarily delivered to working adults.
+Added: Capella University primarily focuses on master’s and doctoral degree offerings, with approximately 64% of its students enrolled in such programs.
+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’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’s program offerings span the following primary disciplines:
−Removed: arts and sciences;
−Removed: business and technology;
−Removed: counseling and human services;
−Removed: nursing and health sciences;
−Removed: and public service leadership.
Capella University’s GuidedPath credit-hour courses are offered on a quarterly academic schedule, which generally coincides with calendar quarters.
−Removed: Capella University offers new students in most programs the flexibility to begin the first course in their program of study at the beginning of any month.
−Removed: These students then enroll in subsequent courses on a regular quarterly course schedule.
+Added: Capella University offers new students in most GuidedPath programs the flexibility to begin the first course in their program of study at the beginning of any month.
+Added: students then enroll in subsequent courses on a regular quarterly course schedule.
Depending on the program, students generally enroll in one to two courses per quarter.
Each course has a designated start date, and the majority of courses last for ten weeks.
−Removed: To meet traditional Capella University best practices, GuidedPath students typically need to access the online courseroom multiple times each week.
−Removed: However, the courses are developed to be taken asynchronously, so that students can attend each course as it fits their weekly schedule.
−Removed: GuidedPath students are required to respond to questions posed by the instructor, as well as comments made by other students.
+Added: GuidedPath courses are developed to be taken asynchronously, so that students can attend each course as it fits their weekly schedule.
+Added: GuidedPath students are required to participate weekly in discussions and/or respond to questions posed by the instructor, as well as comments made by other students.
This format provides for an interactive experience in which each student is both encouraged and required to be actively engaged.
Faculty are also required to have substantive engagement in each course each week.
−Removed: Additional learning activities may include reading, simulations, team projects and/or research papers.
Capella University’s online format provides a digital record of student interactions for the course instructor to assess students’ levels of engagement and demonstration of required competencies.
The course design also includes assessment of course competencies.
+Added: Capella University also offers courses in the FlexPath model.
In the FlexPath model, students’ demonstration of competencies is directly assessed by faculty when the student submits an assessment.
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 programs and for certain master’s degree programs related to professional licensure.
−Removed: These students participate in periodic residencies, year-in-residencies, and supervised practica and internships as a complement to their courses.
+Added: The primary exception to Capella University’s online format is for certain doctoral and master’s degree programs related to professional licensure.
+Added: These students participate in periodic residencies, year-in-residencies, and supervised practica and internships as part of their programs.
Residencies typically last from four to 12 days and are required, on average, once per year for students in applicable programs.
7 unchanged sentences
Faculty are supervised by academic leaders within their schools.
−Removed: 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.
+Added: 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 readers and dissertation mentors to doctoral students in addition to other responsibilities.
None of Capella University’s employees are a party to any collective bargaining or similar agreement with Capella University.
1 unchanged sentence
In addition, professional development and training is provided for all faculty members on an ongoing basis.
−Removed: To evaluate the performance of faculty members, courseroom activity is regularly monitored and assessments are made with respect to both student satisfaction with the courseroom experience and student performance against course outcomes.
Organization of Capella University
−Removed: Overall academic and business decisions of Capella University, including review of the annual financial budget, are directed by its Board of Trustees.
−Removed: The Board of Trustees consists of Dr.
−Removed: Eric Jolly, Chairman, and currently eleven other members.
+Added: Overall academic and business decisions of Capella University, including review and approval of the annual financial budget, are directed by its Board of Trustees.
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, nine are
−Removed: 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 Provost and Senior Vice President of Academic Affairs of Capella 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.
+Added: The Boards of Trustees of Strayer 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.
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.
−Removed: These marketing activities may include Internet, television, print, radio, email, social media, and direct mail advertising campaigns.
+Added: These marketing activities include online advertising (display, social, mobile, search, and through aggregators), television, print, radio, email, and direct mail advertising campaigns.
Other marketing activities include supportive outreach to current students, participation in seminars and trade shows, and development of key marketing relationships with corporate, healthcare, armed forces, government, and educational organizations.
−Removed: Online advertising (display, social, mobile, search, and through aggregators) currently generates the largest volume of inquiries from prospective students.
Student Admissions
9 unchanged sentences
Students in the GuidedPath credit hour programs are charged tuition on a per course or per term basis.
−Removed: Per course prices vary by discipline, number of credit hours, and degree level.
Students in select doctoral programs are charged tuition at a fixed quarterly amount, regardless of the number of courses for which the student registers.
2 unchanged sentences
however, a maximum of two FlexPath courses can be taken at any one time.
−Removed: Students in credit hour certificate programs are charged tuition on a per course basis, which varies by discipline and the number of credit hours.
+Added: Students in credit hour certificate programs are charged tuition on a per course basis.
Tuition rates are reviewed at least annually.
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.
−Removed: 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:
−Removed: armed forces relationships and discount program available to all members of the U.S.
−Removed: armed forces, including active duty members, veterans, National Guard members, reservists, civilian employees of the U.S.
−Removed: Department of Defense and immediate family members of active duty personnel.
−Removed: • Corporate, healthcare and federal relationships with more than 800 large and mid-size organizations.
−Removed: • 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.
−Removed: As of December 31, 2021, approximately 33% of Capella University students received a discount in connection with these programs.
+Added: 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.
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.
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.
−Removed: As of December 31, 2021, approximately 15% of Capella University students were awarded a scholarship.
Career Development Services
8 unchanged sentences
Australia/New Zealand Segment
−Removed: 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: The Australia/New Zealand segment is comprised of Torrens University, Think Education, and Media Design School (collectively the “ANZ institutions”).
+Added: Founded in 2013, Torrens University is the only investor-funded University in Australia.
+Added: Torrens University offers undergraduate, graduate, higher degree by research, and specialized degree courses primarily in five fields of study:
+Added: business, design and creative technology, health, hospitality, and education.
+Added: Courses are offered both online and at physical campuses.
+Added: Torrens University is registered with the Tertiary Education Quality and Standards Agency (“TEQSA”), the regulator for higher education providers and universities throughout Australia, as an Australian University that is authorized to self-accredit its courses.
+Added: Think Education is a vocational registered training organization and accredited higher education provider in Australia.
+Added: Think Education delivers education at several campuses in Sydney, Melbourne, Brisbane, and Adelaide as well as through online study.
+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.
+Added: Media Design School is a globally recognized private tertiary institution for creative and technology qualifications in New Zealand.
+Added: 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.
+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.
Student Profile
+Added: The following is a breakdown of students by program level enrolled in the ANZ institutions as of December 31, 2022:
+Added: students Percentage of
+Added: Bachelor’s 8,709 44 %
+Added: Master’s 4,952 25 %
+Added: Doctoral 93 *
+Added: Associate’s 44 *
+Added: Certificate/Other 5,853 30 %
+Added: Total Students 19,651 100 %
+Added: ___________________________________________________________
+Added: * Represents less than 1%.
+Added: The ANZ institutions have a diverse student population.
+Added: Of the students enrolled at the end of 2022, approximately 32% were age 31 or older, approximately 24% were engaged in part-time study, approximately 64% were female, and approximately 1% were Aboriginal or Torres-Strait Islanders.
Students attending the ANZ institutions primarily consist of recent high school graduates as well as working adults.
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.
−Removed: 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:
−Removed: business, design and creative technology, health, hospitality, and education.
+Added: Of the students enrolled at the end of 2022, approximately 48% were domestic students, and approximately 52% were international students 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.
The variety of educational programs offered include both accredited and non-accredited courses that are offered online, in person at physical campuses, or a combination of online and in person.
1 unchanged sentence
Further, a significant portion of the teaching staff also work in the industry related to the subject/discipline in which they teach and are therefore industry-connected subject matter experts.
−Removed: The faculty at ANZ Institutions include both full-time and part-time faculty members.
+Added: The majority of students enrolled in ANZ institutions enroll in trimesters, lasting 12 weeks and commencing at approximately mid-February, late May and mid-September.
+Added: Students generally enroll in one to three subjects per trimester, depending on their mode of study, and for international students, depending on minimum load requirements attached to their visa.
+Added: Students are assessed in full each trimester, and will re-enroll into further subjects in subsequent trimesters.
+Added: Courses are offered either in person or online, and students may elect to take a combination thereof.
+Added: International students are subject to government regulation with respect to the proportion of their study that must be taken face-to-face.
+Added: Both modes of study are priced consistently, subject to the same admission requirements, policies and procedures and receive the same level of service and support.
+Added: The structure of curricula allows students to apply credits earned in one program toward attainment of more advanced qualifications, with an ability to progress from vocational to higher education, from diplomas to bachelor’s and then into post-graduate programs.
+Added: Within Australia this academic credit is transferable across institutions.
+Added: The faculty at ANZ institutions consists of both full-time and part-time faculty members.
In Australia and New Zealand, the primary qualification faculty members must have to teach at an institution of higher education is a degree that is at least one level higher than the relevant discipline they are teaching, in order to demonstrate their advanced skills, knowledge and understanding of the subject matter.
−Removed: Torrens University is required to have a robust and active research agenda in order to maintain its registration as a University.
+Added: Torrens University is required to maintain a robust and active research agenda in order to maintain its registration as a University.
As such, all faculty are expected to be involved in scholarship and/or research programs.
Torrens University has an outstanding group of senior research leaders in the disciplines of artificial intelligence and health, and are forming new research groups in business, design, education, and disability.
+Added: To be accredited as a University in Australia, Torrens University must ensure three of its research areas are at a world class standard and must report regularly on its research outcomes.
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
−Removed: 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: 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 to continuously develop their skills and remain up-to-date with new developments.
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.
−Removed: In addition, all staff at the ANZ Institutions are able to take any course at the ANZ Institutions free of charge.
Organization of the ANZ Institutions
1 unchanged sentence
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.
−Removed: The Academic Board, on delegated authority from the Governing Board, has principal responsibility for quality assurance of all academic activities of the institutions, including the maintenance of high standards in teaching and scholarship.
+Added: The Academic Board, on delegated authority from the Governing Boards, has principal responsibility for quality assurance of all academic activities of the institutions, including the maintenance of high standards in teaching and scholarship.
The Executive Leadership team oversees the operational leadership and strategic direction of the institutions with clear delegations and direction from each of the institution’s Governing Boards.
7 unchanged sentences
Students enrolling in higher education graduate courses must demonstrate their ability to undertake postgraduate studies in the proposed field.
−Removed: The admission criteria are course-specific and may include formal qualifications at the Australian Qualifications Framework (“AQF”) Level 7 or above, a combination of formal qualifications and relevant professional experience, or extensive high-level relevant professional experience.
+Added: The admission criteria are course-specific and may include formal educational qualifications, a combination of formal educational qualifications and relevant professional experience, or extensive high-level relevant professional experience.
All applications for postgraduate courses are assessed on an individual basis.
3 unchanged sentences
In addition, domestic applicants who wish to access vocational education and training (“VET”) student loans will be assessed to establish if they have the aptitude to complete the qualification.
−Removed: Evidence to demonstrate this aptitude includes a completed Australian secondary education or equivalent, or a qualification at the level or below an applicant’s desired course according to the AQF.
+Added: Evidence to demonstrate this aptitude includes a completed Australian secondary education or equivalent, or a qualification at the level or below an applicant’s desired course.
Media Design School (New Zealand)
3 unchanged sentences
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 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.
Tuition and Fees
−Removed: The ANZ Institutions charge tuition by subject and the tuition rates vary by subject.
−Removed: Tuition rates are reviewed at least annually.
+Added: The ANZ institutions set tuition by course and the tuition is billed by enrolled subject, which varies depending on the discipline, award level, and length of program.
+Added: Tuition rates are reviewed at least annually, with adjustments influenced by market conditions, changes in operating costs and competitor activity.
In addition, the ANZ institutions offer a range of scholarships and discounts to students that are both merit-based and based on specific circumstances.
+Added: The majority of scholarships are offered to new international students and targeted to particular geographical regions or specific disciplines or courses as a means of enhancing accessibility and affordability.
Career Development Services
6 unchanged sentences
and view and register for careers and industry-related events.
−Removed: The ANZ Institutions also partner with Forage and Practera to bring students free virtual work experience to help them build their employability skills.
+Added: The ANZ institutions also collaborate with industry partners 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.
4 unchanged sentences
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.
−Removed: 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.
+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 education benefits programs through the use of low-cost online general education-level courses recommended by the American Council on Education for credit at other colleges and universities.
+Added: Industry Background
+Added: The United States market for post-secondary education is large, fragmented, and competitive.
+Added: According to the National Center for Education Statistics, the total number of post-secondary students enrolled as of the fall of 2021 was approximately 19.0 million, reflecting a 13.4% decrease from record enrollment in the fall of 2010.
+Added: Approximately 1.3 million of these students attended proprietary institutions.
+Added: 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 significantly reduced the number of students enrolled in post-secondary education institutions in recent years.
+Added: 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.
+Added: Enrollment at proprietary colleges increased 5.3% in the fall of 2020 and declined 9.3% in the fall of 2021.
+Added: 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.
+Added: Notwithstanding weaker demand dynamics in past years, including the more recent adverse impact 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
+Added: demographic, economic, and social trends.
+Added: Census Bureau has reported that approximately 62.5 million adults over the age of 25 in the United States do not have more than a high school education, and approximately 33.5 million adults over the age of 25 have some college experience but have not completed a college degree.
+Added: Other trends that could positively affect demand for our programs include:
+Added: • increasing demand by employers for specific types of professional and skilled workers;
+Added: • expansion of employer provided tuition assistance programs as a mechanism to attract and retain employees;
+Added: • growth in the number of high school graduates from 2.8 million in 1999-2000 to an estimated 3.7 million in 2022-2023, according to the National Center for Education Statistics;
+Added: • the significant and measurable income premium and enhanced employment prospects attributable to post-secondary education;
+Added: • a number of initiatives underway to reduce the cost of a post-secondary education;
+Added: • continued demand from working adults for programs offered by accredited institutions.
+Added: Prior to the COVID-19 pandemic and the corresponding closure of Australia’s borders, the Australian higher education market experienced consistent enrollment growth.
+Added: In 2020, Australian higher education enrollments totaled approximately 1.6 million, compared to 1.2 million in 2010, resulting in a 38% 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 2010 to 0.5 million in 2020.
+Added: However, due to Australia closing its borders in response to the COVID-19 pandemic in early 2020, international enrollments declined in recent years.
+Added: With Australia’s borders now fully reopened, the Australian higher education market is expected to return to enrollment growth in the near future, with a significant share of growth expected from international students.
+Added: The post-secondary education market is highly competitive, with no private or public institution holding a significant market share.
+Added: Strayer University, Capella University, and Torrens University (the “Universities”) compete primarily with traditional public and private degree-granting accredited colleges and universities, other proprietary degree-granting accredited schools, and alternatives to higher education.
+Added: In addition, we face competition from various non-traditional, credit-bearing and noncredit-bearing education programs, provided by proprietary, public, and not-for-profit providers, including massive open online courses offered worldwide without charge by traditional educational institutions and other direct-to-consumer education services.
+Added: As the proportion of traditional colleges providing alternative learning modalities increases, we will face increasing competition for students from traditional colleges, including colleges with well-established reputations for excellence and colleges in states that offer various forms of “free college” programs.
+Added: 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.
+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, our partnerships with employers, and our relationship with other learning institutions.
+Added: Company Strengths
+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: We believe the following strengths position us to capitalize on the demand for post-secondary education:
+Added: • Focus on innovation.
+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.
+Added: Capella University’s competency-based learning infrastructure and direct assessment capabilities through the FlexPath offering, Strayer University’s video, simulation and content and student support capabilities, and Torrens University’s virtual career expo are examples of this drive to transform education delivery and learning by working adults.
+Added: The Universities leverage these transformational capabilities to provide high quality, easily accessible, and affordable educational programs to their students.
+Added: • Consistent operating history.
+Added: Strayer University, Capella University, and Torrens University have been in continuous operation since 1892, 1993, and 2013, respectively, and all three institutions have demonstrated an ability to operate
+Added: consistently and grow profitably.
+Added: As a combined Company, we have continued and enhanced this track record, with a broader, more diversified product offering, a balanced revenue mix, financial and operational synergies, and greater scale.
+Added: • Practical and diversified programs.
+Added: We offer programs in practical areas of adult education.
+Added: 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.
+Added: We have a diversified program portfolio that includes Strayer University’s primarily undergraduate programs in business, criminal justice, and information technology, and an online MBA program offered through the Jack Welch Management Institute;
+Added: Capella University’s primarily graduate-focused, competency-based programs in healthcare and counseling, including a robust doctoral portfolio;
+Added: and ANZ’s certificate and degree programs offered through Torrens University, Think Education, and Media Design School including post-graduate programs in business administration, information systems and public health, Torrens University’s 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 today’s workforce.
+Added: • Focus on adults pursuing career-relevant degree and non-degree programs.
+Added: We focus on serving adults who are pursuing undergraduate and graduate degrees as well as non-degree certificates and training programs that will help them advance their careers and employment opportunities.
+Added: We provide high quality student support services such as advising, writing, tutoring and research support;
+Added: administrative services;
+Added: library services;
+Added: financial aid counseling;
+Added: and career counseling.
+Added: Increasingly, we are leveraging data and analytics to create personalized experiences for our students, which are reflected in our persistence improvements and continued high student satisfaction.
+Added: • Flexible 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.
+Added: • Attractive and convenient campus locations.
+Added: Physical presence continues to be an important strength for us, notwithstanding the fact that the vast majority of academic activity occurs online.
+Added: Strayer University has campuses that are attractive and modern, offer 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 are unique in comparison to most online education programs and position Strayer University to support its online learners more effectively.
+Added: 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 students.
+Added: • Established brand names and alumni support.
+Added: Strayer University and Capella University are established brand names in post-secondary adult education.
+Added: 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.
+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 existing strengths in its established college brands, including Think Education and Media Design School.
+Added: Company Strategy
+Added: Our goal is to be a leading innovator and provider of career-relevant and meaningful education programs that prepare students for advancement in their careers and professional lives, and promote economic mobility.
+Added: We have identified the following strategic priorities as key to achieving our goal:
+Added: • Improve student success — Our success depends on the success of our students.
+Added: The more we focus on helping our students succeed, the more likely it is that we will succeed.
+Added: In order to improve student success, we must continue to hire outstanding faculty, produce high quality academic content, and employ cutting edge technology that enables us to deploy faculty and content in increasingly efficient and effective ways.
+Added: • Enhance student experience — Our students are predominately working adults who are furthering their education in order to advance their careers and professional lives.
+Added: Our students are busy with work and family responsibilities that leave little time for other endeavors.
+Added: Thus, we make every effort to make all interactions with our students productive, and we are constantly looking for ways to serve them better.
+Added: This initiative includes leveraging technology, including
+Added: artificial intelligence and automation, to improve student support in the areas of advising, tutoring, registration, campus and online technology, and administration.
+Added: We measure our performance through student surveys and focus groups as well as through metrics like persistence, continuation, and return on student investment.
+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 degree.
+Added: The free courses earned are redeemable in one’s final academic year.
+Added: 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.
+Added: The Universities have also instituted various other tuition reductions and scholarships.
+Added: Through Sophia Learning, we provide low-cost online general education-level 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.
+Added: We continue to monitor and assess the impact of our affordability initiatives and explore other ways to make our offerings as affordable as possible.
+Added: We are also focused on deploying new, more robust 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.
+Added: We also continue to develop new programs and concentrations.
+Added: • Build employer relationships — 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 for employers, is also positioned to drive enrollment in our universities that is less reliant on federal funding.
+Added: • 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.
+Added: We strive to attract the best talent and then develop and retain them.
+Added: We want to be known as an employer of choice and be a place where one can build a long-term career.
Human Capital Resources
2 unchanged sentences
Outside the U.S., the Company employed 247 full-time faculty members, and 698 non-faculty staff.
−Removed: The following tables presents the gender representation of our U.S.
+Added: In addition, the Company employed 2,521 part-time faculty members and non-faculty staff worldwide as of December 31, 2022, of whom 921 were based outside of the U.S.
+Added: and 1,600 were based in the U.S.
+Added: The following table presents the gender representation of our U.S.
and ANZ employees:
3 unchanged sentences
Not Declared 1 % *
+Added: ___________________________________________________________
+Added: * Represents less than 1%.
The following table presents the race and ethnicity representation of our U.S.
2 unchanged sentences
Two or More Races 0.3 %
−Removed: Native Hawaiian or Other Pacific Islander 0.3 %
−Removed: American Indian or Alaska Native 0.9 %
+Added: Native Hawaiian or Pacific Islander 0.2 %
+Added: American Indian or Alaskan Native 0.9 %
Not Declared 8.4 %
8 unchanged sentences
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.
−Removed: In 2021, we continued our focus on diversity, equity and inclusion initiatives and established a DEI Programs Team;
+Added: In 2021, we established a DEI Programs Team;
appointed from amongst our leadership a Chief Diversity Officer for the Company;
2 unchanged sentences
The Company is dedicated to attracting, developing and retaining top talent.
−Removed: SEI offers compensation and benefits that are market-competitive and performance-based.
+Added: SEI offers compensation and benefits that are market-competitive and performance-based (in accordance with Department of Education regulations).
The compensation programs and policies reflect the Company’s commitment to reward performance that aligns with its values and priorities.
1 unchanged sentence
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.
−Removed: The Company also provides generous paid time off, a wellness plan, paid parental and military leave, as well as giving back & volunteer time.
+Added: The Company also provides generous paid time off, a wellness plan, paid parental and military leave, as well as giving back and 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.
6 unchanged sentences
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.
−Removed: The Company strives to uphold environmental practices that reduce climate change risks from energy consumption, greenhouse gas emissions, water usage, and waste generation.
+Added: strives to uphold environmental practices that reduce climate change risks from energy consumption, greenhouse gas emissions, water usage, and waste generation.
These practices include:
• Reducing the physical footprint of corporate offices and campuses reduces energy consumption, water usage, and waste generation
−Removed: ◦ 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: ◦ The Company has achieved a goal of 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: The Company will continue to pursue additional opportunities when appropriate.
• Reducing energy consumption, including from non-renewable energy resources
−Removed: ◦ 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: ◦ Strayer University and Capella University offer robust online curriculums, with the majority of instruction delivered online at Strayer University and 100% of instruction delivered online at Capella University;
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.
5 unchanged sentences
Department of Energy focused on protecting the environment through energy efficient products and practices.
+Added: ◦ Torrens University Australia is a part of the Tech Central Sustainability Collaborative Partners Group focused on developing opportunities to improve sustainability.
+Added: ◦ Our Media Design School campus in Auckland, New Zealand is located in a 6 Star Green Star rated building, which represents leadership in environmentally sustainable building practices.
◦ SEI is investing in energy-saving interior design options, including updated lighting packages with more efficient LED lighting;
2 unchanged sentences
◦ 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.
−Removed: ◦ As a provider of online education, data centers are a critical component of business operations;
+Added: ◦ As a provider of online education, data centers are a critical component of our business operations;
one of SEI’s largest power usages from a data center is from a data center powered entirely by renewable wind energy.
4 unchanged sentences
◦ Many campus city locations are located near mass transportation options.
+Added: ◦ All campuses in Australia and New Zealand are located near a city center and public transportation hubs.
• Reducing water usage
−Removed: ◦ Our Herndon, VA and Minneapolis, MN corporate offices and certain campus locations use water efficient fixtures to decrease the amount of water usage.
+Added: ◦ Our Herndon, VA and Minneapolis, MN corporate offices and many campus locations, including Australia and New Zealand campuses, use water efficient fixtures to decrease the amount of water usage.
• Reducing waste generation from business operations
−Removed: ◦ 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.
−Removed: ◦ 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: ◦ SEI has recycling programs within operations in the U.S., Australia, and New Zealand to encourage employees to recycle products, including a national contract with a document management company which provides corporate and campus locations with shredding bins on-site to allow business materials to be recycled.
+Added: ▪ Between January 2021 and December 2022, the Company securely recycled approximately 50 U.S.
+Added: short tons of paper resulting in significant environmental benefits, including benefits from not having to generate new paper.
• Additional efforts to reduce environmental impacts
1 unchanged sentence
◦ Within certain campus locations, janitorial companies also use green cleaning products to reduce impacts to the environment.
+Added: ◦ Torrens University Australia, Think Education, and Media Design School are Certified B Corporations, meaning they meet high standards of verified performance, accountability, and transparency on factors including supply chain practices and overall environmental sustainability.
Information About Our Executive Officers
24 unchanged sentences
Department of Education
−Removed: To be eligible to participate in Title IV programs, Strayer University and Capella University must comply with specific standards and procedures set forth in the Higher Education Act and the regulations issued thereunder by the Department of Education.
+Added: To be eligible to participate in Title IV programs, Strayer University and Capella University must comply with specific standards and procedures set forth in the Higher Education Act and the regulations issued thereunder by the Department of
An institution must, among other things, be authorized to offer its educational programs by each state in which it maintains physical presence, as defined by the state, and maintain institutional accreditation by a recognized accrediting agency, as discussed below.
5 unchanged sentences
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 Provisional Program Participation Agreement, approving Capella’s continued participation in Title IV programs with provisional certification through December 31, 2022.
+Added: Capella submitted its application for recertification by the September 30, 2022 deadline and, consistent with Department of Education practice, continues to operate as provisionally certified until the Department processes Capella’s recertification application.
Accreditation
14 unchanged sentences
The rule also repeals the strict geographic scope of institutional accreditors.
−Removed: 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.
−Removed: Now, 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.
+Added: In January 2023, the Department indicated its intention to establish a negotiated rulemaking committee in 2023 to consider new proposed regulations on accreditation and related issues.
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.
1 unchanged sentence
NACIQI also reviewed the Higher Learning Commission at its February 2018 meeting and recommended that the Secretary of Education extend its recognition for five years.
−Removed: The Secretary subsequently accepted NACIQI’s recommendation and extended the accreditors’ recognition.
−Removed: If an institutional accreditor loses recognition by the Secretary of Education, an institution may be allowed to continue its participation in Title IV programs on a provisional basis for a period not to exceed 18 months to allow the institution to seek accreditation from another recognized accrediting agency.
+Added: The Secretary subsequently accepted NACIQI’s recommendations and extended the accreditors’ recognition.
+Added: Both the Higher Learning Commission and Middle States Commission on Higher Education have applied for renewal of their recognition by the Department.
+Added: NACIQI is scheduled to consider their applications at its winter 2023 meeting.
+Added: If an institutional accreditor loses recognition by the Secretary of Education, an institution may be allowed to continue its participation in Title IV programs on a provisional basis for a period not to exceed 18 months to allow the institution to seek
+Added: accreditation from another recognized accrediting agency.
An institution that does not become accredited by another recognized accreditor within 18 months will lose Title IV eligibility.
6 unchanged sentences
Strayer University went through a period of reaffirmation of accreditation that began in 2015 and lasted through June 2017, when Middle States reaffirmed Strayer University’s accreditation.
−Removed: The University’s period of accreditation by Middle States extends into 2025.
+Added: Strayer University’s period of accreditation by Middle States extends into 2025.
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.
7 unchanged sentences
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.
−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.
In January 2015, Capella University’s accreditation with the Higher Learning Commission was reaffirmed.
The reaffirmation enables Capella University to continue to participate in Title IV programs.
−Removed: The next reaffirmation of accreditation is scheduled to take place in 2022-2023.
+Added: On July 29, 2020, NACIQI held a meeting to review compliance by HLC with Department of Education requirements for recognized accrediting agencies.
+Added: On October 26, 2020, a Senior Department Official (“SDO”) found HLC non-compliant, in part.
+Added: While the SDO required that HLC submit periodic reporting for twelve months, the SDO did not restrict HLC’s scope of accreditation or ability to accredit new institutions.
+Added: HLC did not appeal the Secretary’s decision.
+Added: On January 13, 2023, the Higher Learning Commission reaffirmed and continued Capella University’s accreditation, with the next reaffirmation of accreditation set for 2032-33.
The Higher Learning Commission is continuously developing new standards and approval processes under which it evaluates programs and institutions.
26 unchanged sentences
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.
−Removed: In 2021, Capella University was also authorized to operate in Colorado, Florida, Georgia and Tennessee.
+Added: Capella University is also authorized to operate in Florida.
Strayer University and Capella University will be subject to similar extensive regulation in those additional states in which we may physically expand our operations in the future.
2 unchanged sentences
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: In the fall of 2019, Devmountain merged into Strayer University.
−Removed: In the summer of 2021, Hackbright Academy merged into Strayer University.
Licensure of Online Programs
6 unchanged sentences
Institutions could obtain such authorization directly from the state or (except in California) through a state authorization reciprocity agreement.
−Removed: 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 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
+Added: 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.
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.
14 unchanged sentences
Both Strayer University and Capella University opted to early implement the final rules in December 2020.
+Added: In January 2023, the Department indicated its intention to establish a negotiated rulemaking committee in 2023 to consider new proposed regulations on distance education.
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”).
6 unchanged sentences
As participants in SARA, the Universities may offer online courses and other forms of distance education to students in any participating SARA state in which the Universities do not have a physical location or a physical presence as defined by the state without having to seek any new state institutional approval beyond their home states (Minnesota and Washington, D.C., respectively).
−Removed: The Universities’ home states, in turn, will continually monitor the institutions’ compliance with SARA standards.
+Added: The Universities’ home states, in turn, will continually monitor the
+Added: institutions’ compliance with SARA standards.
With this initiative, the Universities are able to expand distance education offerings with increased consistency and ease.
31 unchanged sentences
In addition, many of our working adult students finance their own education or receive full or partial tuition reimbursement from their employers.
−Removed: Congress has enacted several tax credits for students pursuing higher education and has provided for a tax deduction for interest on student loans and exclusions from income of certain tuition reimbursement amounts.
+Added: Congress has enacted several tax credits for students pursuing higher education and has provided for a tax
+Added: deduction for interest on student loans and exclusions from income of certain tuition reimbursement amounts.
Eligible students at Strayer University or Capella University may participate in educational assistance programs administered by the U.S.
4 unchanged sentences
Under the Post-9/11 Veterans Educational Assistance Act of 2008 (as amended), sometimes referred to as the “New GI Bill,” eligible veterans may receive, among other benefits, tuition benefits up to the net cost to the student (after accounting for state and federal aid, scholarships, institutional aid, fee waivers, and similar assistance), subject to a cap of $26,381 for non-public domestic institutions for 2022-2023.
−Removed: In addition, eligible students pursuing an educational program solely through distance learning are eligible to receive a housing stipend of approximately $871 per month, half the amount available to students attending certain classroom-based programs or programs that combine classroom learning and distance learning.
+Added: In addition, eligible students pursuing an educational program solely through distance learning are eligible to receive a housing stipend of approximately $917 per month, half the national average amount available to students attending certain classroom-based programs or programs that combine classroom learning and distance learning.
On August 16, 2017, the President signed into law the Harry W.
4 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, former 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, the President 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.
25 unchanged sentences
Undergraduate students who demonstrate financial need may qualify for a subsidized loan.
−Removed: The federal government pays the interest on a subsidized loan while the student is in school and during any approved periods of deferment, after which the student’s obligation to repay the loan begins.
+Added: The federal government pays the interest on a subsidized loan while the student is in school and
+Added: during any approved periods of deferment, after which the student’s obligation to repay the loan begins.
Unsubsidized loans are available to students who do not qualify for a subsidized loan or, in some cases, in addition to a subsidized loan.
10 unchanged sentences
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.
+Added: Capella University filed its application for recertification in advance of the September 30, 2022 deadline and, consistent with Department of Education practice, continues to offer federal financial aid under a Provisional Program Participation Agreement until the Department acts on the recertification application.
Provisional Certification
3 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
−Removed: operating under full certification.
+Added: Strayer University is 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.
−Removed: 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.
−Removed: Meetings of this negotiated rulemaking committee are scheduled to occur January-March 2022.
+Added: In 2022, the Department of Education considered as part of the Institutional and Programmatic Eligibility negotiated rulemarking new regulations regarding, among other things, requirements of institutions that are provisionally certified.
+Added: Negotiated rulemaking committee meetings completed in March 2022 with no consensus reached on the topic, and the Department has since indicated it intends to publish draft rules in spring 2023.
Administrative Capability
13 unchanged sentences
• Commence a proceeding to impose a fine or to limit, suspend or terminate the participation of the institution in Title IV programs.
−Removed: 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.
−Removed: Meetings of this negotiated rulemaking committee are scheduled to occur January-March 2022.
+Added: In 2022, the Department of Education considered as part of the Institutional and Programmatic Eligibility negotiated rulemaking new regulations regarding, among other things, administrative capability criteria.
+Added: Negotiated rulemaking committee meetings completed in March 2022 with no consensus reached on the topic, and the Department has since indicated it intends to publish draft rules in spring 2023.
Financial Responsibility
11 unchanged sentences
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
−Removed: 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 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.
4 unchanged sentences
The financial responsibility changes became effective July 1, 2020.
−Removed: 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.
−Removed: Meetings of this negotiated rulemaking committee are scheduled to occur January-March 2022.
+Added: In 2022, the Department of Education considered as part of the Institutional and Programmatic Eligibility negotiated rulemaking new regulations regarding, among other things, financial responsibility.
+Added: Negotiated rulemaking committee meetings completed in March 2022 with no consensus reached on the topic, and the Department has since indicated it intends to publish draft rules in spring 2023.
Student Loan Defaults
4 unchanged sentences
for example, in the fall of 2022, the Department of Education issued cohort default rates for federal fiscal year 2019.
−Removed: The Department of Education may take adverse action against an institution if it has excessive cohort default rates, including the following:
+Added: The Department of Education may take adverse action against an institution if it has excessive cohort default rates, including without limitation the following:
• If an institution’s cohort default rate is 30% or more in a given fiscal year, the institution will be required to assemble a “default prevention task force” and submit to the Department of Education a default improvement plan.
4 unchanged sentences
Institutions with a cohort default rate equal to or greater than 15% for any of the three most recent fiscal years for which data are available are subject to a 30-day delayed disbursement period for first-year, first-time undergraduate borrowers.
+Added: National and institutional cohort default rates for cohort years 2018 and 2019 have been impacted by the COVID-19 repayment pause.
Strayer University and Capella University’s official three-year cohort default rates for 2017, 2018, and 2019, as well as the average official three-year cohort default rates for proprietary institutions nationally, were as follows:
6 unchanged sentences
On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which included a provision that established a federal student loan administrative forbearance period, pause in interest accrual, and suspension of collections activity through September 30, 2020.
−Removed: Former Department of Education Secretary Betsy DeVos extended these student loan flexibilities through January 31, 2021.
−Removed: President Biden subsequently extended the period through May 1, 2022.
+Added: Through a series of administrative actions, the Department of Education has extended these student loan flexibilities several times.
+Added: On August 24, 2022, the Department announced that it would provide student loan relief to eligible borrowers to address financial hardships in connection with the COVID-19 pandemic.
+Added: Under the relief measures, up to $10,000 in student debt will be forgiven for individual borrowers earning less than $125,000 or married couples or heads of household earning less than $250,000, and up to $20,000 will be forgiven for such borrowers who formerly received Pell Grants.
+Added: In a memorandum prepared by the Department’s General Counsel, the Department stated that it has interpreted provisions of the Higher Education Relief Opportunities for Students Act of 2003 to authorize the Secretary to exercise broad discretion in granting student loan relief.
+Added: Since the Department’s student loan relief announcement, multiple lawsuits have been filed against the Department challenging its authority to grant such relief.
+Added: Supreme Court has granted petitions to review injunctions issued by two federal courts that blocked implementation of the student loan relief program, with oral arguments scheduled for February 28, 2023.
+Added: On November 22, 2022, the Department announced further extension of the pause on student loan repayment and noted that payments will resume 60 days following implementation of the relief program or resolution of the litigation.
+Added: If the Department has not implemented the relief program or the litigation has not resolved by June 30, 2023, the Department has stated that payments would resume 60 days thereafter.
+Added: On January 10, 2023, the Department proposed regulations to create a new income-driven repayment plan to reduce future monthly payments for lower- and middle-income borrowers.
+Added: Among other things, the proposed regulation would revise the Revised Pay As You Earn (REPAYE) regulations, eliminate negative amortization, and offer $0 monthly payments for any individual borrower who makes less than roughly $30,600 annually and any borrower in a family of four who makes less than about $62,400.
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.
1 unchanged sentence
A requirement of the Higher Education Act, commonly referred to as the 90/10 Rule, applies only to proprietary institutions of higher education, which include Strayer University and Capella University.
−Removed: Under this rule, a proprietary institution is prohibited from deriving more than 90% of its revenues (as revenues are computed under the Department of Education’s methodology) from Title IV funds on a cash accounting basis (except for certain institutional loans) for any fiscal year.
+Added: Under this rule, a proprietary institution is prohibited from deriving more than 90% of its revenues (as revenues are computed under the Department of Education’s methodology) from federal funds on a cash accounting basis (except for certain institutional loans) for any fiscal year.
+Added: Historically, by statute, only Title IV funds have been considered within the 90% metric;
+Added: however as described below, that will change for fiscal years beginning on or after January 1, 2023.
A proprietary institution of higher education that violates the 90/10 Rule for any fiscal year will be placed on provisional certification for up to two fiscal years.
1 unchanged sentence
In addition, the Department of Education discloses on its website any proprietary institution of higher education that fails to meet the 90/10 requirement, and reports annually to Congress the relevant ratios for each proprietary institution of higher education.
−Removed: Using the statutory formula, Strayer University derived approximately 82.95% of its cash-basis revenues from Title IV program funds in 2020.
+Added: Using the statutory formula under the definition of federal funds included within the 90% metric then in effect, Strayer University derived approximately 82.95% of its cash-basis revenues from Title IV program funds in 2021.
Capella University derived approximately 67.06% of its cash-basis revenues from Title IV program funds in 2021.
3 unchanged sentences
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.
−Removed: Under the legislation, these revisions to the 90/10 Rule would apply to institutional fiscal years beginning on or after January 1, 2023.
−Removed: 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.
−Removed: Meetings of this negotiated rulemaking committee are scheduled to occur January-March 2022.
+Added: The Department of Education promulgated new regulations regarding, among other things, the 90/10 rule as part of the Institutional and Programmatic Eligibility negotiated rulemaking and the committee reached consensus on the topic in March 2022.
+Added: The Department released final regulations on October 27, 2022.
+Added: The regulatory changes require proprietary institutions to count all “federal education assistance funds” as federal revenue in the 90/10 calculation for fiscal years beginning on or after January 1, 2023.
+Added: The preamble to the final rule and subsequent sub-regulatory guidance further prohibit inclusion of non-Title IV eligible programs offered in part or in full through distance education in the 10% calculation.
+Added: On December 21, 2022, the Department released a list of federal agencies and federal education assistance programs that must be included as federal revenue in the 90/10 calculation.
+Added: Such agencies include the U.S.
+Added: Department of Defense (military tuition assistance) and the Department of Veterans Affairs (veterans education benefits).
+Added: The Department indicated that it will publish periodic updates to the list as needed.
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.
2 unchanged sentences
Restrictions on Incentive Compensation
−Removed: As a part of an institution’s program participation agreement with the Department of Education and in accordance with the Higher Education Act and Title IV regulations, the institution may not provide any commission, bonus, or other incentive payment based in any part, directly or indirectly, upon success in securing enrollments or awarding financial aid to any person or entity engaged in any student recruitment, admissions, or financial aid-awarding activity.
+Added: As a part of an institution’s program participation agreement with the Department of Education and in accordance with the Higher Education Act and Title IV regulations, the institution may not provide any commission, bonus, or other incentive
+Added: payment based in any part, directly or indirectly, upon success in securing enrollments or awarding financial aid to any person or entity engaged in any student recruitment, admissions, or financial aid-awarding activity.
The rule applies to all institutional employees and service providers who are engaged in or responsible for any student recruitment or admission activity or making decisions regarding the award of financial aid.
20 unchanged sentences
Two active Strayer University programs, the Associate in Arts in Accounting and Associate in Arts in Business Administration, were “in the zone,” and one active Capella University program, the Masters of Science in Marriage and Family Counseling/Therapy, was “in the zone.” Each of those three programs remained fully eligible.
−Removed: The Department has not yet released any subsequent debt-to-earnings measures.
+Added: The Department has not released any subsequent debt-to-earnings measures under the 2015 Regulations.
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.
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.
−Removed: Meetings of the negotiated rulemaking committee are scheduled to occur January-March 2022.
+Added: Meetings of the negotiated rulemaking committee occurred in spring 2022 with the committee failing to reach consensus.
+Added: The Department has since indicated it intends to publish draft gainful employment rules in spring 2023.
Return of Federal Funds
2 unchanged sentences
If the student attends the institution, but withdraws during the first 60% of any period of enrollment or payment period, the amount of Title IV program funds that the student earned is equal to a pro rata portion of the funds for which the student would otherwise be eligible.
−Removed: If the student withdraws after the 60% point, then the student has earned 100% of the Title IV program funds.
+Added: If the student withdraws after the 60% point, then the student has
+Added: earned 100% of the Title IV program funds.
Strayer University and Capella University are required to measure the last day of attendance based on official attendance records, and “attendance” for online classes must include participation in an academically-related activity.
4 unchanged sentences
If late returns of Title IV program funds constitute 5% or more of students sampled in the institution’s annual compliance audit for either of its two most recently completed fiscal years, an institution generally must submit such a letter of credit payable to the Secretary of Education.
+Added: In January 2023, the Department indicated its intention to establish a negotiated rulemaking committee in 2023 to consider new proposed regulations on the return of federal funds.
Misrepresentation
8 unchanged sentences
Negotiated rulemaking committee meetings completed in December 2021 with no consensus reached on the topic.
−Removed: As a result, the Department of Education has discretion to propose a new rule for public comment.
+Added: On October 31, 2022, the Department released final Borrower Defense to Repayment regulations, which include among other defenses to repayment substantial misrepresentation, with a significantly expanded definition of misrepresentation.
+Added: The final rule’s definition of misrepresentation includes any false, erroneous or misleading statement made by the institution or its representatives, or its marketing, advertising, recruiting or admissions agents, as well as any omission of fact that a reasonable person would have considered in deciding to enroll in or continue attendance at the institution.
+Added: A statement is deemed misleading if it has the likelihood or tendency to mislead under the circumstances.
+Added: A misrepresentation includes statements and omissions made in any medium, whether directly or indirectly, to a student, prospective student or any member of the public, or to an accrediting agency, to a State agency, or to the Secretary of Education.
+Added: Misrepresentation also includes the dissemination of a student endorsement or testimonial that a student gives either under duress or because the institution required such an endorsement or testimonial to participate in a program.
+Added: The final rule will become effective July 1, 2023.
Borrower Defenses to Repayment
1 unchanged sentence
Under the 2016 BDTR Rule, for Direct Loans disbursed after July 1, 2017, a student borrower may assert a defense to repayment if:
−Removed: (1) the student borrower obtained a state or federal court judgment against the institution;
+Added: (1) the student borrower obtained a state or federal
+Added: court judgment against the institution;
(2) the institution failed to perform on a contract with the student;
25 unchanged sentences
Negotiated rulemaking committee meetings completed in December 2021 with no consensus reached on the topic.
−Removed: As a result, the Department of Education has discretion to propose a new rule for public comment.
+Added: On July 6, 2022, the Department released proposed Borrower Defense to Repayment regulations for public comment and subsequently published a final rule on October 31, 2022.
+Added: Among other things, the final rule sets a single standard and streamlined process for relief that will apply to all future and pending Borrower Defense to Repayment claims as of July 1, 2023, regardless of the date of a borrower’s loan disbursement;
+Added: defines the types of misconduct that could lead to borrower defense discharges, including substantial misrepresentations, substantial omissions of fact, breaches of contract, aggressive and deceptive recruitment, and state or federal judgments or final Department of Education actions that could give rise to a Borrower Defense to Repayment claim;
+Added: establishes a presumption that borrowers reasonably relied upon misrepresentations or omissions;
+Added: establishes a reconsideration process for borrowers whose claims are not approved for a full discharge, including based on a state law standard;
+Added: and creates a process for the adjudication
+Added: of group claims based on common facts.
+Added: The final rule permits nonprofit legal assistance organizations to request group claims.
+Added: The final rule also establishes a recoupment process separate from the approval of Borrower Defense to Repayment claims.
+Added: In addition, the final rule prohibits institutions from requiring borrowers to sign mandatory pre-dispute arbitration agreements or class action waivers for claims related to the making of a Federal Direct Loan or the provision of educational services for which the loan was obtained.
+Added: The final rule will become effective July 1, 2023.
Third-Party Servicers
3 unchanged sentences
Strayer University and Capella University have written contracts with third-party servicers to perform activities related to Strayer University’s and Capella University’s participation in Title IV programs.
−Removed: Strayer University also has a contract with Heartland Payment Systems, Inc.
−Removed: for processing stipends due to students.
−Removed: For loan default prevention, Strayer University and Capella University contract with Student Connections.
−Removed: Strayer University and Capella University also contract with the National Student Clearinghouse to report enrollment status updates to the National Student Loan Data System.
−Removed: Strayer University and Capella University believe that their third-party servicer contracts comply with the regulations, and they have reported such contracts to the Department of Education.
+Added: On February 15, 2023, the Department released updated guidance regarding third-party servicer definitions and activities, requiring institutions to be in compliance with the new guidance by May 1.
+Added: The Company and the Universities are in the process of reviewing the guidance and intend to comply with the Department’s May 1 reporting deadline.
+Added: Additionally, in January 2023, the Department indicated its intention to establish a negotiated rulemaking committee in 2023 to consider new proposed regulations on third-party servicers and related issues.
Lender Relationships
1 unchanged sentence
Strayer University and Capella University have a code of conduct that we believe complies with the provisions of the Higher Education Act in all material respects.
+Added: Additionally, Strayer University complies with all private lender requirements.
In addition to the code of conduct requirements that apply to institutions, the Higher Education Act contains provisions that apply to lenders, prohibiting lenders from engaging in certain activities as they interact with institutions.
12 unchanged sentences
Department of Education regulations require institutions to report to the Department of Education a new additional location at which at least 50% of an eligible program may be offered, if the institution wants to disburse Title IV program funds to students enrolled at that location.
−Removed: Under its Program Participation Agreement with the Department of Education, Strayer University must notify the Department of Education of the addition of any such location within ten days of opening, but need not seek prior approval.
+Added: Under its Program Participation Agreement with the Department of Education, Strayer University must notify the Department of Education of the addition of any such location within ten days of opening, but need
+Added: not seek prior approval.
Under Capella University’s provisional certification, the Department of Education must approve any new campus locations, level of academic offerings, and non-degree and degree programs before Capella University may award or disburse Title IV aid to students enrolled at any such location or in any such program.
16 unchanged sentences
For example, the CARES Act modified the process that institutions must follow for the return of unearned Title IV funds in connection with student withdrawals and provided institutions with additional flexibility for the measurement of satisfactory academic progress for students.
−Removed: 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 May 1, 2022.
The Department issued several guidance documents outlining and interpreting these changes.
11 unchanged sentences
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.
−Removed: 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.
−Removed: Meetings of this negotiated rulemaking committee are scheduled to occur January-March 2022.
+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 and the committee reached consensus on the topic in March 2022.
+Added: The Department released final regulations in October 2022.
+Added: The regulatory changes require proprietary institutions to count all “federal education assistance funds” as federal revenue in the
+Added: 90/10 calculation for fiscal years beginning on or after January 1, 2023.
+Added: Such funds include not only Title IV funds but also certain funds from the U.S.
+Added: Department of Defense, Department of Veterans Affairs, and other agencies.
+Added: The CARES Act initially suspended payments and interest accrual for Federal Family Education Loans and Direct Loans until September 30, 2020.
+Added: Through a series of administrative actions, student loan relief has been extended several times with the Department of Education announcing on August 24, 2022, that it would provide student loan relief to eligible borrowers to address financial hardships in connection with the COVID-19 pandemic.
+Added: Under the relief measures, up to $10,000 in student debt will be forgiven for individual borrowers earning less than $125,000 or married couples or heads of household earning less than $250,000, and up to $20,000 will be forgiven for such borrowers who formerly received Pell Grants.
+Added: In a memorandum prepared by the Department’s General Counsel, the Department stated that it has interpreted provisions of the Higher Education Relief Opportunities for Students Act of 2003 to authorize the Secretary to exercise broad discretion in granting student loan relief.
+Added: Since the Department’s student loan relief announcement, multiple lawsuits have been filed against the Department challenging its authority to grant such relief.
+Added: Supreme Court has granted petitions to review injunctions issued by two federal courts that that blocked implementation of the Department’s student loan relief program, with oral arguments scheduled for February 28, 2023.
+Added: On November 22, 2022, the Department announced further extension of the pause on student loan repayment and noted that payments will resume 60 days following implementation of the relief program or resolution of the litigation.
+Added: If the Department has not implemented the relief program or the litigation has not resolved by June 30, 2023, the Department has stated that payments would resume 60 days thereafter.
Other Regulations Governing Title IV Programs
11 unchanged sentences
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.
−Removed: 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.
+Added: The Department of Education conducted public hearings concerning its Title IX regulations and on June 23, 2022, the Department of Education released proposed Title IX regulations for public comment.
+Added: Among other changes, the proposed rule would address all forms of sex-based harassment (not only sexual harassment);
+Added: clarify that Title IX’s prohibition against sex discrimination includes discrimination on the basis of sex stereotypes, sex characteristics, pregnancy or related conditions, sexual orientation and gender identity;
+Added: and eliminate the requirement for live hearings at the post-secondary level.
+Added: The public comment period on the proposed rule ended on September 12, 2022.
+Added: When the Department publishes a final Title IX rule, it will indicate an effective date.
+Added: On October 4, 2022, OCR released a resource document for students and institutions in which it reinforced that current Title IX regulations prohibit discrimination based on pregnancy, childbirth, false pregnancy, termination of pregnancy or recovery therefrom.
+Added: The resource document further emphasized that Title IX requires institutions to treat pregnancy, childbirth, false pregnancy, termination of pregnancy and recovery therefrom the same as other temporary disabilities with respect to
+Added: medical benefits, services, plans, and policies, and detailed requirements for leave and reinstatement for both students and employees.
Students with Disabilities
5 unchanged sentences
As a result of such enforcement action or as a result of new laws and regulations that require greater accessibility, the Department of Education or the Department of Justice may require an institution to modify its online classrooms and other uses of technology to satisfy applicable requirements.
−Removed: As with all nondiscrimination laws that apply to recipients of federal financial assistance, an institution may lose access to certain federal financial assistance if it does not comply with Section 504 requirements.
+Added: In 2022, the Department of Justice issued guidance emphasizing that although businesses have flexibility in how they comply with the ADA’s general requirements of nondiscrimination and effective communication, they have an obligation to confirm that the programs, services, and good provided to the public – including online – are accessible to people with disabilities.
+Added: The Department of Justice also noted that the Department is “committed to using its enforcement authority to ensure website accessibility for people with disabilities and to ensure that the goods, services, programs, and activities that businesses and state and local governments make available to the public are accessible.” As with all nondiscrimination laws that apply to recipients of federal financial assistance, an institution may lose access to certain federal financial assistance if it does not comply with Section 504 requirements.
In addition, private parties may file or threaten to file lawsuits alleging failure to comply with laws that prohibit discrimination on the basis of disability, such as Section 504 and the ADA, and seeking monetary damages and correction of the alleged violations.
12 unchanged sentences
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.
−Removed: 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: 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 post-secondary schools that participate in federal student loan, grant, and work-study programs.
The Office of Enforcement restores an office first established by the Department in 2016.
1 unchanged sentence
Administrative Actions and Appeals Services Group, Borrower Defense Group, Investigations Group, and Resolution and Referral Management Group.
−Removed: 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.
+Added: The Department intends the Office of Enforcement to coordinate with other state and federal
+Added: partners, including the Department of Justice, Consumer Financial Protection Bureau, Federal Trade Commission, and state attorneys general.
Potential Effect of Regulatory Violations
13 unchanged sentences
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.
−Removed: Meetings of this negotiated rulemaking committee are scheduled to occur January-March 2022.
+Added: Meetings of this negotiated rulemaking committee completed in March 2022, and on October 27, 2022, the Department released final regulations related to change of ownership and change in control of institutions of higher education.
+Added: The ownership interest threshold for publicly traded corporations remains at 25%, as described below.
+Added: Among other things, the final rule lowered the threshold for reportable changes in ownership percentages from 25% to 5% for changes in ownership that do not result in a change in control, introduced a new timeline for reporting such changes, and created a requirement that for a planned change in ownership that results in a change in control, an institution is now required to notify students at least 90 days prior to the anticipated transaction date.
+Added: The final rule will become effective July 1, 2023.
Change in Ownership Resulting in a Change of Control
Many states and accrediting agencies require institutions of higher education to report or obtain approval of certain changes in ownership or other aspects of institutional status, but the types of and triggers for such reporting or approval vary among states and accrediting agencies.
−Removed: Both Strayer University’s accrediting agency, Middle States, and Capella University’s accrediting agency, the Higher Learning Commission, require institutions that they accredit to inform them in advance of any substantive change, including a change that significantly alters the ownership or control of the institution.
+Added: Both Strayer University’s accrediting agency, Middle States, and Capella University’s
+Added: accrediting agency, the Higher Learning Commission, require institutions that they accredit to inform them in advance of any substantive change, including a change that significantly alters the ownership or control of the institution.
Examples of substantive changes requiring advance notice to, and approval by, the agency include changes in the legal status, ownership, or form of control of the institution, such as the sale of a proprietary institution.
1 unchanged sentence
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
−Removed: approval processes.
+Added: Each state in which the institution operates may also have its own change in ownership approval processes.
Additionally, SARA and its affiliated state portal agencies may require certain notifications or applications in relation to a change in ownership.
54 unchanged sentences
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:
−Removed: 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: borrower defense to repayment, misrepresentation, closed
+Added: 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.
The Department also announced the formation of a Prison Education Program Subcommittee.
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.
−Removed: The committee failed to reach consensus on the remainder of the topics.
+Added: The committee did not reach consensus on the remainder of the topics.
+Added: If the negotiated rulemaking committee reaches consensus on a topic, the Department of Education is bound to propose a rule consistent with the consensus.
In the absence of consensus, the Department of Education has discretion to propose a rule for public comment.
−Removed: Issue papers and redlines provided by the Department indicate the Department is
−Removed: 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: Proposed and final rules related to the topics above were announced by the Department on July 6, 2022 and October 31, 2022, respectively.
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:
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.
−Removed: Meetings of this negotiated rulemaking committee are scheduled to occur January-March 2022.
+Added: Meetings of this negotiated rulemaking committee completed in March 2022 and the committee reached consensus on two topics:
+Added: ability to benefit and changes to the 90/10 rule.
+Added: It did not reach consensus on the remainder of the topics.
+Added: On July 26, 2022, the Department released proposed regulations related to the 90/10 rule and change of ownership and change in control of institutions of higher education.
+Added: On October 27, 2022, the Department of Education released final 90/10 regulations, which are consistent with the consensus language.
+Added: The 90/10 rule’s final regulations include changes to requirements impacting non-Title IV program revenue, and the treatment of “federal education assistance funds” within the calculation.
+Added: On December 21, 2022, the Department released a list of federal agencies and federal education assistance programs that must be included as federal revenue in the 90/10 calculation.
+Added: Such agencies include the U.S.
+Added: Department of Defense (military tuition assistance) and the Department of Veterans Affairs (veterans education benefits).
+Added: The Department indicated that it will publish periodic updates to the list as needed.
+Added: The final regulations also include modifications to the criteria for revenue generated from non-Title IV programs, allowing institutions to count funds as non-Federal revenue only for programs that:
+Added: (1) do not include any courses offered in an eligible program that is provided by the institution;
+Added: (2) are provided by the institution and taught by one of the institution’s instructors;
+Added: and (3) are located at the institution’s main campus, one of its approved additional locations, at another school facility approved by the appropriate State agency or accrediting agency, or at an employer facility.
+Added: In the preamble to the final 90/10 regulations and subsequent sub-regulatory guidance, the Department indicated that non-Title IV programs that are offered in part or in full via distance education are not eligible to be included in the “10” portion of the calculation.
+Added: The final regulations establish new disclosure requirements for institutions that fail the 90/10 rule, including a student notification requirement, and clarify reporting requirements and liabilities for institutions that lose access to Title IV funds because of failing 90/10 calculations.
+Added: The new 90/10 regulations are effective for fiscal years beginning on or after January 1, 2023.
+Added: During the negotiated rulemaking process, the Department also proposed a number of changes to financial responsibility regulations, but did not reach consensus on the language.
+Added: The proposal included new mandatory and discretionary triggers that would require the posting of financial protections.
+Added: Among other things, the Department proposed a discretionary trigger in the event of significant fluctuations in Title IV aid;
+Added: a discretionary trigger for pending borrower defense claims;
+Added: and a discretionary trigger for when institutions close most or all on-ground locations but maintain an online presence.
+Added: The Department also proposed as part of the negotiated rulemaking process the reestablishment of gainful employment regulations, which would apply to all programs (including non-degree programs) at proprietary institutions and non-degree programs at public and private nonprofit institutions.
+Added: Among other items, the Department proposed to use the first four digits of the CIP (Classification of Instructional Program) code to identify gainful employment programs;
+Added: to remove the “zone” concept pertaining to debt-to-earnings rates;
+Added: and to establish that a program would fail the debt-to-earnings rate measure if, among other measures, its debt-to-earnings rate is greater than 8 percent and its discretionary earnings rate is greater than 20 percent.
+Added: The Department also proposed including Parent PLUS loans when determining student debt load, and included a new “earnings threshold” measure comparing the median annual earnings for students who completed the program to the median earnings for a working adult aged 25-34 with only a high school diploma in the state in which the institution is located (or nationally based on the percentage of students located in the same state as the institution).
+Added: The Department’s proposal would deem a program ineligible for Title IV funding if the program failed either metric (debt-to-earnings or earnings threshold) two out of three consecutive years.
+Added: Among other topics, the Department proposed a number of additional changes to regulations regarding administrative capability, change of control and certification issues, none of which reached consensus.
+Added: In June 2022, the Department indicated its intention to publish proposed rules regarding gainful employment, ability to benefit, financial responsibility, administrative capability, and certification procedures in April 2023.
+Added: In January 2023, the
+Added: Department indicated its intention to establish one or more negotiated rulemaking committees in 2023 to consider new proposed regulations on distance education, improving the use of deferments and forbearances, third-party servicers and related issues, cash management, return of federal funds, state authorization, accreditation and related issues, and TRIO programs.
We cannot predict the outcome of the negotiated rulemaking process.
5 unchanged sentences
Under the Higher Education Act, net price means average yearly price actually charged to first-time, full-time undergraduate students who receive student aid at a higher education institution after such aid is deducted.
+Added: On January 11, 2023, the Department published a request for information regarding how to best identify low-financial-value educational programs.
+Added: As part of the announcement, the Department indicated its intention is to publish a list of the programs at all types of colleges and universities that provide the least financial value to students.
+Added: Once the list is published, institutions with programs on this list will be asked to submit improvement plans to the Department.
College Scorecard
10 unchanged sentences
The Department of Education enforces FERPA by initiating corrective actions against noncompliant institutions, which could lead to the loss of federal funding.
+Added: The Department has indicated its intention to publish draft FERPA rules in April 2023 that would update, clarify, and improve the current regulations by addressing outstanding policy issues and implementing statutory amendments.
Recently, legislatures in a number of states have sought to enact privacy bills.
5 unchanged sentences
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.
−Removed: The California Privacy Rights Act, or CPRA, will expand the CCPA’s requirements when it becomes effective in 2023.
+Added: The California Privacy Rights Act, or CPRA, expanding the CCPA’s requirements became effective on January 1, 2023.
Collection of personal information outside the United States may subject companies to global privacy and data security laws.
13 unchanged sentences
The regulation of higher education providers is undertaken at a national level by the Tertiary Education Quality and Standards Agency (“TEQSA”).
−Removed: All organizations that offer higher education qualifications in or from Australia must be registered with TEQSA.
−Removed: Higher education providers must also have their courses of study accredited by TEQSA unless they have been granted and hold self-accrediting status.
−Removed: Torrens currently holds self-accrediting status, but Think does not.
+Added: All organizations that offer higher education qualifications in or from Australia must be registered by TEQSA.
+Added: Higher education providers that have not been granted self-accrediting status must also have their courses of study accredited by TEQSA.
Registration as a higher education provider is for a fixed period of up to seven years.
3 unchanged sentences
The regulation of VET providers is undertaken at a national level by the Australian Skills Quality Authority (“ASQA”).
−Removed: An organization providing VET courses in Australia must be registered by ASQA as a Registered Training Organisation (“RTO”).
+Added: Organizations providing VET courses in Australia must be registered by ASQA as a Registered Training Organisation (“RTO”).
Courses offered by RTOs need to be accredited by ASQA.
2 unchanged sentences
Torrens is one of 44 universities in Australia.
−Removed: It is a private, for-profit entity and is registered with TEQSA in the Australian University category.
+Added: It is a private, for-profit entity and is registered with TEQSA.
As a self-accrediting university, it is not required to have its individual courses of study accredited by TEQSA.
14 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: 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: 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.
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.