largestplayersbecameevidentbeforetheendofObama’ssec-
ondtermwhenCorinthianCollegesInc.andITTEducational
ServicesInc.wentbankrupt,strandingmorethan50,000stu-
dentswithoutdegrees.
TheObamaadministrationrespondedwitha numberof
measures,mostnotablydrawingupthe“borrowerdefense”
regulationin2016,whichautomaticallyforgaveloansforstu-
dentswhohadattendedimplodingschoolsif theyhadn’t
enrolledinmorestabledegree-grantinginstitutionswithin
threeyears.Theregulationalsobannedschoolsfromprotect-
ingthemselvesbyrequiringstudentstosignmandatoryarbitra-
tionagreementsandclass-actionlawsuitwaiversasa condition
ofenrollment.“It’snotlikethisjustcameoutofnowhere,”says
BenMiller,a seniorpolicyadviseratthedepartmentunder
Obama.“Allthesethingsweredrivenbyreal,documented
problemsandabuses.”
TheObama-eradepartmentalsotriedtowakeupthenation’s
53 accreditingagencies,whichserveasgatekeepersforthestu-
dentloanprogram.Accreditorsweresupposedtoensurethat
collegesgavestudentsdecenteducations,buttheyhada his-
toryofcoddlingschools.In 2016 thedepartmentwithdrewits
recognitionoftheAccreditingCouncilforIndependentColleges
& Schools,orACICS,which
hadoverseenschoolsrun
byill-starredCorinthianand
ITTEducational.
To DeVos, however, it
wasthe department that
hadactedabusively,imped-
inginnovationinthesector,
andshesurroundedherself
withformerfor-profitcol-
legeexecutives whowere
likelytoagree.Oneofthese
wasDianeAuerJones,DeVos’sprincipaldeputyundersecre-
tary,whohaddonea stintasa seniorregulatoryaffairsoffi-
ceratCareerEducationCorp.from 2010 to2015,a timeduring
whichitschiefexecutiveofficerresignedafterthecompany
admittedtofalsifyingcareerplacementdata,accordingtothe
Senatereport.(ADOEspokespersonsaysthatit wasJoneswho
alertedthedepartmenttoherformeremployer’s“jobplace-
mentirregularities.”)
Inherearlymonths,DeVosputborrowerdefenseonhold
justbeforeit wasscheduledtogointoeffectandbegancraft-
inga moreindustry-friendlyrulethat,atleastinanearlyver-
sion,wouldhavedoneawaywithautomaticloanrepayment
waivers,allowedschoolstoreinstatearbitrationandclass-
action stipulations, and required students to prove that their
college had intentionally defrauded them. In a May interview in
Washington, Jones contended that the final rule should be fairer
to students and colleges. “We had concerns about due process
rights,” she said, as two public-relations people sat on either side
of her peering at their phones. The department’s efforts have
been hampered by legal challenges, but Jones said she was con-
fident that the new regulation would be finalized by November.Meanwhile,
the department
revealed earlierthis
year that it had a back-
log of almost 160,000 unful-
filled borrower defense
claims,promptingDemocratsin
CongresstoaccuseDeVosofslow-walking
them. ( Jones said this isn’t true.)
Meanwhile, DeVos stunned career
employees in November by restoring the depart-
ment’s recognition of ACICS. The department had to recon-
sider the decision, she said, because ACICS had successfully
challenged the previous administration’s decision in court,
saying it had failed to fully review tens of thousands of docu-
ments. Two weeks after ACICS was back in the department’s
good graces, there was another catastrophe: The Education
Corporation of America, a large for-profit chain with schools
under ACICS’s purview, said it was going out of business, leav-
ing nearly 20,000 students out in the cold. Both Jones and
ACICS President Michelle Edwards say there’s little the depart-
ment or the accreditorcould have done to prevent this.Unlike some public schools and
Capitol Hill, the January meeting of
the Council for Christian Colleges
& Universities was a setting where
DeVos clearly felt at ease, even as
she was pushed up the center aisle
in a wheelchair. An aide positioned
her next to Shirley Hoogstra, the
council’s president, who settled into
a green chair. DeVos explained that
she was recently in a bike accident
andbrokeherpelvis and her hip socket.
“Ooh, ouch,” Hoogstra said. She proceeded to tell DeVos
that she was a role model to students in the room and pur-
sued a friendly line of questioning. “What have you found sat-
isfying in your role as secretary?” she asked.
DeVos talked about her work to revamp accreditation and
get rid of those Obama letters, which she called “the bane of
a lot of our existences.” She gave her host a knowing look.
“I’d like you to tell the students in the room about tack-
ling big endeavors when you are going to get criticized and
praised,” Hoogstra said.
DeVosspokenostal icallyabout ere rlyye rsinreli ious
schools.“Ialwaysgobacktothefactthatinmyviewthere’s
anaudiencethatI playto,”DeVossaid.“It’sjustanaudienceo
If I cankeepthatperspectiveatalltimes...”
“That’sthetrueNorthStar,” oogstrasaid.
“I think there’s no doubt that every day I’m regularly called,”
DeVos said. “I refer often to Micah 6, verse 8. ‘What does God
expect of me? To seek justice, love mercy, and walk humbly
with him.’ That’s a refrain that never leaves me.” <BW> �With
Jennifer Jacobs, Josh Eidelson, and Emily WilkinsMichigan -2.5%
NewYork 0.1%
Kansas 1.4%
SouthDakota1.9%
Connecticut5.3%States with lowest growth
rates in fourth and eighth
grade math and
reading scores
between
2003 and
2015DATA: NATIONAL CENTER FOR EDUCATION STATISTICS, C/O DAVID ARSEN, TANNER DELPIER, AND JESSE NAGEL OF MICHIGAN STATE UNIVERSITY; BROOKINGS INSTITUTE; BELLWETHER EDUCATION PARTNERS (2014-2015 SCHOOL YEAR)
Bloomberg Businessweek July 22, 20191995 2015ChangeinK-12educationrevenuesince 1995
Michigan Other states 100%50057