Forest Institute Closing

[DynamicDidactic]

http://www.news-leader.com/story/ne...ng-fall-president-set-resign-friday/20574185/

The News-Leader reported in November that tax returns show that Forest Institute has run in the red for four of the past six years, operating at a net deficit of $757,309 over those years — ending Sept. 30, 2013.

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[xXIDaShizIXx]

http://www.news-leader.com/story/ne...ng-fall-president-set-resign-friday/20574185/

Wonder where all the money went, eh?

 

[psyman]

How is it possible to run in the red with that many students and that amount of tuition fees? These programs hardly have overhead aside from salaries.

 

[WisNeuro]

Ugh, good riddance, terrible school with terrible outcome data. I imagine a lot of that money went into things other than education. Perhaps into the retirement accounts of administration.

 

[erg923]

How is it possible to run in the red with that many students and that amount of tuition fees? These programs hardly have overhead aside from salaries.

Actually the reverse is true. They have more overhead than traditional programs. Faculty often don't have grants, so the school is usually has to offer higher salaries than a public research university. They have to pay rent or mortgage on the building, fund library and IT services all on their own, absorb all fringes like 401k match, health insurance, etc. They don't have the alumni numbers that other schools have to generate donations and endowments. I can easily see how these schools could go under.

 

[OneNeuroDoctor]

Seems that when these schools close other program move into the area. It appears they are going through bankruptcy. I wonder if the Chicago school or Adler moves into this area?

Burrell Behavioral Health bought Forest and it sounds like money was misappropriated and Forest CEO quit. Would Argosy, Alliant, or another professional school be allowed to take over the school in Bankrupcy Court?

Seems that they tried to develop a partnership with Southwest Missouri State Psychology Department but SWMS had no interest.

 

[OneNeuroDoctor]

Actually the reverse is true. They have more overhead than traditional programs. Faculty often don't have grants, so the school is usually has to offer higher salaries than a public research university. They have to pay rent or mortgage on the building, fund library and IT services all on their own, absorb all fringes like 401k match, health insurance, etc. They don't have the alumni numbers that other schools have to generate donations and endowments. I can easily see how these schools could go under.

I have heard that many of the FSPS have building leases over $100,000 per month and advertising is expensive. The President of Argosy is paid in the millions per year and his PhD degree is in Marketing and Advertising from Walden University.

 

[xXIDaShizIXx]

I have heard that many of the FSPS have building leases over $100,000 per month and advertising is expensive. The President of Argosy is paid in the millions per year and his PhD degree is in Marketing and Advertising from Walden University.

Apparently getting a useless degree is how you make money these days.

 

[DynamicDidactic]

tangentially related
http://money.cnn.com/2015/03/25/investing/university-of-phoenix-apollo-earnings-tank/

I hope that this particular type of for-profit university model crashes. All of these indicators make me think the Argosys and Alliants of this world are probably not making as much money as well.

 

[WisNeuro]

Now only if Congress would scale back or cap loan repayment, it would seriously dent predatory degree mills.

 

[DynamicDidactic]

I am in strong support for 2 free years of community college. To me, this is a blatant attempt to reduce enrollment in for-profit schools. Everything else that has been attempted to limit federal loans has been met with too much resistance from the lobby groups.

 

[WisNeuro]

I support that was well. also, more support for technical training. Things that actually train people adequately for real jobs in demand would be nice. Instead of borrowing money from needier projects to erase 6 figure loan debt from people who cannot come close to paying it back.

 

[hillies]

Especially when you consider professions such as K-12 teachers where there is very little to be gained by going to a for-profit or expensive private school, free community college (even for a 4 year community college degree as many CC's are doing now) just makes sense.

 

[xXIDaShizIXx]

I know a few more programs like this that need to close...