WASHINGTON — Three Senate Democrats are raising concerns with companies that develop online degree programs for universities over whether their recruiting tactics and tuition-sharing arrangements are contributing to high student debt loads.Sens.Elizabeth Warren , D-Mass., Sherrod Brown, D-Ohio, and Tina Smith, D-Minn., sent a letter to eight of the largest online program management companies — including 2U, Academic Partnerships and Pearson — raising concerns about their business practices.“We continue to have concerns about the impact of OPM partnerships on rising student debt loads,” the senators wrote in the letter sent Friday.”The responses to our previous letters confirmed that OPMs often have tuition-sharing arrangements with universities, which commit an ongoing percentage of tuition revenue to the OPM to finance the start-up and ongoing costs of operating online degree programs.” The tuition-sharing model, they said, “also creates incentives for aggressive recruitment practices.” The companies often receive 50% or more of students’ tuition upon each agreement, which in turn may create a disincentive to lower costs, the senators said.
Representatives for 2U, Academic Partnerships and Pearson did not immediately respond to requests for comment.Millions of dollars in financial student aid go to online degree programs every year.But there is no consistent public disclosure of how many of those dollars are directed to recruiting, advertising and profit, rather than instruction.
The senators first questioned the companies in a previous letter sent last January.Since then, the Covid pandemic has significantly increased the need for online education, the senators said in a statement .Dr.Gottlieb: Velocity of omicron spread putting great burden on society Supreme Court hears arguments on Biden administration’s vaccine, mask mandate Mayors make crypto push despite the environmental burden Growing frustration among voting rights activists in Georgia Gunmen target Philadelphia 14-year-old in bus stop shooting Sen.
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