Category Archives: Finance

The money that makes academe tick.

by

Mills College Declares Financial Emergency and May Cut 30 to 35 Jobs

Mills College, a liberal-arts institution for women in Oakland, Calif., declared a financial emergency on Tuesday as a first step toward dealing with financial challenges, including a projected $9.1-million deficit in the coming fiscal year.

In a news release and in a statement emailed to faculty, staff, and students on Tuesday afternoon, the college described the Board of Trustees’ approval of the declaration of emergency as a step that authorizes Mills to restructure all of its expenses in p…

by

College Official Unwittingly Tells Students That It May Soon Close

An administrator at Holy Cross College, in Indiana, mistakenly sent an email to the entire student body on Friday that paints a bleak picture of the small institution’s finances and mentions its possible closure. The alarming email, and failed efforts by the college to recall it, was reported by the South Bend Tribune.

“It may be that I will spend the better part of the coming school year closing down the college,” wrote the vice president for student affairs, Kelly Jordan, in the email. “All we…

by

Purdue’s Faculty Senate Seeks to Rescind Kaplan Deal

Saying Purdue University’s purchase of Kaplan University violated “both common-sense educational practice and respect for the Purdue faculty,” the university’s Faculty Senate voted overwhelmingly on Thursday to ask Purdue’s leaders to reconsider the deal.

Following a two-hour meeting, the Senate voted, 46 to 8 with one abstention, on a resolution calling on the president and Board of Trustees “to rescind any decisions, to the degree possible, made without faculty input.” The vote came just one …

by

Purdue U. Buys Mega For-Profit Kaplan U., Plans to Turn It Into a ‘Public University’

Updated (4/27/2017, 11:53 a.m.) with news of the finalization of the purchase and more details on the deal.

Purdue University’s Board of Trustees voted on Thursday morning to buy the for-profit Kaplan University, which is a division of the Graham Holdings Company. The surprise announcement was first made in a corporate filing by the company on Thursday morning.


For in-depth analysis of the deal, see this report by Goldie Blumenstyk. For a report on the view from students and faculty members at …

by

Janet Napolitano Disputes Finding That Her Office Held $175 Million in Undisclosed Funds

The University of California’s Office of the President did not disclose $175 million in its reserve funds to the university’s Board of Regents or California’s Legislature, according to a state audit released on Tuesday. The audit’s findings were disputed by Janet Napolitano, the UC system’s president, who wrote that figures in the audit had mischaracterized the office.

The audit found that the Office of the President had spent less than it budgeted while asking for funding increases based on pre…

by

Cal State’s Growth in Hiring of Managers Exceeds Other Staff, Audit Finds

The California State University system has increased its hiring of managers at a steeper rate than its hiring of other employees over the past 10 years, according to a new state audit.

And in a report on the audit released on Thursday, the state auditor, Elaine M. Howle, wrote that the system could not sufficiently explain why it needed all the new managers, including deans, head coaches, and vice presidents, among other positions.

From the 2007-8 to the 2015-16 fiscal years, the system’s growth…

by

Federal Watchdog Is Investigating Possible Bias in Student-Loan Servicing

A federal watchdog is investigating whether student-loan-servicing companies discriminate against borrowers with past-due debt based on their race, sex, or gender, The Washington Post reports.

Patrice A. Ficklin, director of the office of fair lending at the Consumer Financial Protection Bureau, told reporters on Friday that the agency had identified student-loan servicing as an area at risk of credit discrimination, according to the Post. “We’re looking at disparities in outcomes … and we…

by

Trump Will Propose Shutting Down National Arts and Humanities Endowments

President Trump plans to propose eliminating the National Endowments for the Arts and the Humanities in his budget for the 2018 fiscal year, which is scheduled to be released Thursday morning, The New York Times reports.

The Times report cited two unnamed officials with knowledge of a meeting on Wednesday at which Jane Chu, chairwoman of the arts endowment, disclosed the plan to her staff.

The news was not unexpected, as The Hill reported in January that Mr. Trump, who at the time had not yet ta…

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…