Category Archives: Finance

The money that makes academe tick.

by

U. of Wisconsin System Sues Former Campus Leaders Over Handling of Millions

The University of Wisconsin system has sued two former high-ranking officials on its Oshkosh campus in a civil lawsuit over what the system says were financial improprieties in five development projects, including the construction of two biodigesters and an alumni conference center.

The system’s lawsuit, according to the Oshkosh Northwestern, alleges that a former chancellor of the campus, Richard Wells, and a retired vice chancellor and chief business officer, Tom Sonnleitner, mishandled millio…

by

Consumer Financial Protection Bureau Sues Nation’s Largest Student-Loan Servicer

The Consumer Financial Protection Bureau is suing Navient, the country’s largest servicer of federal and private student loans, for failing borrowers during every stage of repayment, the federal agency said on Wednesday in a news release.

In the lawsuit, which seeks undisclosed damages, the bureau states that Navient violated the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Fair Credit Reporting Act, and the Fair Debt Collections Practices Act.

Navient provided borrowers with b…

by

Twin Surprises at Suffolk U.: an Extra Paycheck and a Demand to Return It

[Updated (1/6/2017, 4:28 p.m.) with a statement from the university.]

Some employees at Suffolk University were surprised on Thursday to see an extra paycheck in their bank accounts, The Boston Globe reports, and still more surprised over the university’s insistence that they return the money.

In an internal email obtained by the Globe, the Massachusetts college said that a vendor had mistakenly deposited the funds during a test of a new payroll system. When faculty members saw the unexpected nu…

by

Wisconsin Legislative Agenda Could Have Range of Effects on Higher Ed

With historic majorities in both the Senate and the Assembly, Republican lawmakers in Wisconsin laid out a plan on Tuesday that could affect the state’s higher-education system in many ways, according to the Wisconsin State Journal.

Though the legislative session just opened on Tuesday, lawmakers have already commented on:

  • Campus carry. The Legislature may take up a controversial proposal that would allow people with concealed-carry permits to carry some weapons onto college campuses. The bill,…
by

Most Colleges Will Change Overtime Policies Despite Judge’s Blocking of New Rule

A majority of colleges will proceed with at least some of the changes they’d planned to comply with a new federal rule on overtime pay that was blocked last month by a federal judge, according to a survey of 495 institutions by the College and University Professional Association for Human Resources.

The new rule, which had been expected to take effect on December 1, would increase the pool of employees eligible for overtime pay, from those earning up to $23,000 annually to those earning up to a …

by

U. of Louisville Foundation Broke Its Own Bylaws, State Audit Finds

A former president of the University of Louisville Foundation broke several of its bylaws, acted without consulting its Board of Trustees, and fostered a “dysfunctional governing environment,” according to a Kentucky audit whose report was released on Wednesday.

James R. Ramsey, a former president of the University of Louisville, was also president of the university’s foundation. He stepped down from both positions this year, after Kentucky’s governor sought to radically restructure the universi…

by

USA Funds Moves to Further Focus on Education Philanthropy and Investing

USA Funds, which has played a growing role in education philanthropy and investing in the last few years, announced on Wednesday that it would shed its loan-guarantee affiliates.

Officials at the $1-billion organization said the move would allow it to further focus on its new mission of ensuring that college leads to meaningful results for students, which it does by making grants and investments in for-profit and nonprofit companies and organizations.

Over the last three years, the nonprofit USA…

by

Colorado Heights U. Will Close After Accreditor Loses Recognition

Colorado Heights University, a nonprofit institution in Denver, will close next year, The Denver Post reports.

The announcement follows the U.S. Department of Education’s denial of recognition to the Accrediting Council for Independent Colleges and Schools, the university’s accreditor. Declining enrollment also played a role in the decision to close, the Post reports.

Colorado Heights said in a statement that about 400 of its 500 students were expected to graduate from the institution, and that …

by

Moody’s: Colleges Can Expect Another Year of Low Growth in Tuition Revenue

Revenue from tuition at private and public colleges and universities will remain “steady, but tempered” in the 2017 fiscal year, according to a report on an annual tuition survey by Moody’s Investors Service.

More than 250 institutions responded to the survey, and comprehensive private universities projected the strongest growth, at 3 percent.

As in past reports, this year’s report projects overall revenues to increase by about 2 percent and to track closely the rate of inflation. Additionally, …

by

3 Public Universities in Illinois to Get $17 Million in Emergency Funds

Three public universities in Illinois have been approved for a combined $17 million in emergency funding, the Chicago Tribune reported.

The state’s Board of Higher Education voted on Wednesday to provide the money to Chicago State, Eastern Illinois, and Western Illinois Universities. The money will come from a $20-million pool set up by the state to help financially failing colleges stay open. It can be used only to pay off costs incurred before the end of the year.

Western Illinois University w…