Senator Tom Harkin has launched another attack on the for-profit career college sector through new legislation called the Students First Act. The legislation aims to crack down on "bad actors" throughout higher education, but critics argue it is really an attempt to increase regulatory pressure specifically on career colleges. While protecting students from predatory practices sounds good in principle, the act threatens to be more damaging than previous regulations like the gainful employment rule. The underlying goal may have less to do with students and more to do with the aims of legislators who are skeptical of for-profit institutions.
Politics and semantics fuel latest attacks on career colleges
1. Career College Central
Politics
MARCH 2013
Students
15500 W. 113th St., Suite 200 • Lenexa, KS 66219
FIRST
Semantics at the heart of latest attack on for-profits
Inflated Cash or
Dreams? Class?
Are the aspirations of today’s Fueling the entrepreneurial
students reachable through spirit in today’s college
education? students
The Definitive Voice of the Career College Sector of Higher Education www.CareerCollegeCentral.com
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4. Contents
News
Career College Central
26 Paying Dues
By Jenni Valentino
The ever-increasing student loan debt in America continues
Politics
to take a backseat to current events and economic debates
like the fiscal cliff. However, with the start of President Barack
Obama’s second term, changes to regulate and simplify costs
MARCH 2013
and financial aid for higher education may be looming in the
Students near future.
FIRST
66 ATA College
By Jane Mahoney
In order to combat low retention rates and encourage student
success, ATA College has created a successful mentorship
Semantics at the heart of latest attack on for-profits
program and an administrative retention specialist position to
15500 W. 113th St., Suite 200 • Lenexa, KS 66219
keep at-risk students engaged and on the path to graduation.
INFLATED CASH OR
DREAMS? CLASS?
ARE THE ASPIRATIONS OF TODAY’S FUELING THE ENTREPRENEURIAL
STUDENTS REACHABLE THROUGH SPIRIT IN TODAY’S COLLEGE
Contributed Articles
EDUCATION? STUDENTS
The Definitive Voice of the Career College Sector of Higher Education www.CareerCollegeCentral.com
20 I
nflated Dreams?
On the Cover 10 By Brjden Crewe
With the famed successes of multibillionaire college dropouts
Politics First like Mark Zuckerberg, young people are growing up with an
By Kevin Kuzma increasingly unrealistic American dream. Contributing writer
In his last term before retirement, Senator Tom Harkin, Brjden Crewe defends the importance of a higher education as
D-Iowa, has launched another damaging attack on the a means to achieving one’s ballpark dreams.
career college sector – the most threatening offensive
since the Department of Education’s gainful employment
rule. Editor Kevin Kuzma explains why his legislation to
24 C
ash or Class?
By Dr. Pietro (Pete) Savo
crack down on bad actors” throughout all of education
The Thiel Foundation is giving $100K to students willing to forgo
is not about students at all, but rather about the aims of
a college education and become entrepreneurs before higher
legislators.
education impedes their creative ideas. Dr. Pietro (Pete) Savo,
Chief Financial Officer of a Service Disabled Veteran Owned
Small Business, discusses the legitimacy of this idea and ways
to combat such notions in the classroom.
60 he Great Divide
T
By Robyn Shulman, M.Ed.
It isn’t difficult to see the drastic differences between a
career college and a traditional university, and chances are
that everyone prefers one over the other. Robyn Shulman,
Subscribe! Managing Editor of ED News Daily, explores what makes these
higher ed institutions different and the room for improvement
Career College Central grants you access to: this could mean for both.
• Insightful operations tactics from sector experts
• Student stories 6 W
ho's Representing Your Best Interests?
• Sector research and analysis
By John Assunto
Only $59 for an annual subscription Having trouble finding a quality search firm? John Assunto,
and $39 for additional subscriptions. President and CEO of the Hudson Group, has some advice on
Contact Us Today! Call 913.254.6016 how to find the firm that puts your interests ahead of its own.
or email bridgetd@careercollegecentral.com
MARCH 2013 | 2
5. 38 A
Model for Success www.CareerCollegeCentral.com
By Erik Slagle
The Queens campus of Lincoln Technical Institute has
teamed up with the Greater New York Auto Dealers Publisher/Editor
Association, placing students and potential employers in the Kevin Kuzma
same building. Erik Slagle of Lincoln Education Services kevink@careercollegecentral.com
discusses the model for success such a match has created.
Graphic Designer
16 B
uilding a Better Externship Rick Kitchell
By Dr. Susan F. Schulz
Externships open career opportunities for students and
solidify career school relationships with local businesses Columnists
and employers. They also benefit enrollment and retention Amir Moghadam
rates. Dr. Susan F. Schulz of Susan F. Schulz Associates Vincent Scaramuzzo
Inc. outlines successful externship strategies utilized by
several career institutions. Staff Writers
Tahsa Cerny
54 H
istory ... On Repeat Jane Mahoney
By John Lee Jenni Valentino
Despite a changing education sector, for-profit colleges
have been facing the same criticisms challenges for more
Copy Editors
Erin Cockman
than 100 years. John Lee, Founder and President of JBL
Piper Hale
Associates Inc., discusses the reasons for these challenges
Nate McGinnis
and ways to change this repetitive history.
Megan Schulte
Subscriptions Manager
In Every Issue/Columns Advertising Sales
Bridget Duffy Hays
bridgetd@careercollegecentral.com
5 Letter from the editor 913.254.6016
30 IMAGINE AMERICA FOUNDATION
Career College Central, March/April 2013
43 the link Application to mail at periodicals postage rates is pending
at Olathe, Kan. Career College Central is published
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For more information about subscriptions or advertising
72 MAKING HEADLINES (website and/or magazine), please contact:
Bridget Duffy Hays, Director of New Business Development
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TEL: 913.254.6016 FAX: 913.764.4043
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Subscribe at www.CareerCollegeCentral.com | 3
7. LETTER
from the
Dear readers,
editor
Legislators should not judge the paths these students choose or paint
Before I can commence with writing my letter this month, I first have
to give praise to our printer who was gracious enough to stop the the colleges they attend as bad actors if the legislators don’t agree
presses on this edition of the magazine though we were deep into the with or understand the students’ choices. The path should not be as
final stages of publication. Our original cover story for March was important as the outcome.
much different than what you see here, but that was before our sector
once again became the focus of potentially unfair and overbearing Career colleges help students land jobs and take that important first
legislation in Washington. step toward a brighter future. Those of us who care to set foot inside
these schools know this. Our legislators do not. I would like to ask
This month, Senator Tom Harkin, D-Iowa, launched a new front in them to leave education to those who know and care something about
his battle against career education. In the guise of legislation that it. We’ve been putting students first for decades. There is a difference
protects students from preying colleges, Harkin is seeking to provide between a cleverly titled act … and a mantra.
the Department of Education more power to take measures against
the “bad actors.” Our new cover story takes an insightful look at the
act and explains why this latest effort could be more damaging to the
sector than the original gainful employment rule.
Our elected officials in the Senate are running with an idea that is
sound in principle and have positioned it as a positive for all of higher
education. And yet, the Students First Act is really about putting
undue pressure on all career colleges. Our sector has its naysayers in
Washington, but we all know that entities that operate on a for-profit
basis have negative stigmas attached to them. That makes them all
somewhat suspicious to many in government.
Harkin’s act makes it clear: The day career colleges are finally
appreciated by the masses and lauded by the general public and even
by career politicians for the value they bring in delivering skilled labor
to the U.S. workforce – the flexibility they offer older adults without
the time or money for traditional education – is not likely to come
in 2013. That day won’t arrive until we all agree that what should
matter more than the profit status of an institution is whether or not
that school leads students to a path to achieve their dreams.
Everyone has a different dream and a different idea of how to get
there, as writers Breden Crewe and Dr. Pete Savo explore in this issue.
Their articles shine a light on student aspirations. Are today’s students’
hopes inflated? Is a college education a requirement for achieving
their dreams? These are relevant questions that help us come to a
better understanding of the role education should or should not play in
the lives of our next generation of Americans.
Subscribe at www.CareerCollegeCentral.com | 5
8. john assunto
Who's
REPRESENTING
YOUR BEST Quality search
firms represent your
INTERESTS? interests, not theirs
By John Assunto, Hudson Group
“I can get you an interview … ”
It always amazes me when either my staff or I speak
to executives in our industry and they inform us
that they received an email from a recruiter stating
that their client wants to set up an interview with
them – even though the executives never spoke
with that recruiter or gave them their resumes. The
level of misrepresentation from those situations
puzzles me every time I hear it. Yes, we recognize
the industry has had some corrections, and we’ve
seen the activity increase in our offices. But, at the
end of the day, if it sounds too good to be true, it
probably is.
MARCH 2013 | 6
9. Now more than ever, if you find yourself exploring Take the time to ask those important questions
opportunities in the education space, you should and ask what the follow-up procedure would be
take the time to administer your own litmus test. after your resume has been submitted. Ask the
Ask questions to ensure that you are dealing with search consultant for any assistance they may be
a quality search firm that has your best interests at able to provide to best prepare you for a potential
heart. Here are some simple questions you can pose interview. Also, ask the search consultant if they
to test credibility. are open to informing you of other positions in
the industry that they are aware of that fit your
• efore I forward my resume, do I have your
B background.
commitment that you will not submit it to
anyone unless I have the opportunity to learn Now more than ever, if you find
about the position/company? yourself exploring opportunities
• ill my resume be forwarded to HR/internal
W in the education space,
recruiting, or will it be submitted to a hiring you should take the time to
manager? administer your own litmus test.
• oes your client have a defined interview
D A quality firm with a high level of integrity often
process? has strong long-term professional relationships
with executives and will assist you in your search,
• Will I be contacted directly by your client? even if the firm might not immediately obtain
a fee. A good firm will recognize that helping
• hat is your background in education outside of
W an executive in the present is an opportunity to
recruiting? Is your firm managed by executives build a trusting relationship into the future. Don’t
who are experienced in both executive search underestimate the value of a partnership between
and education? you and a search consultant who is willing to
look out for your interests – when others are only
looking out for their own bottom lines.
There are firms that will be willing to help. Ask
the right questions, and you’ll find the recruiters
who will go above and beyond; hold onto your
relationships with firms like this. Those firms will
go the extra mile when you need to hire.
John Assunto is the President and CEO of the
Hudson Group. He started the education division
at the firm and has provided consulting to the top
executives in proprietary education. He has been
ranked in the top 1 percent of all recruiters worldwide
by Management Recruiters International. His career
includes work with both international schools and
domestic colleges, universities, career schools and
education service corporations. He can be contacted
at 860.652.8660, ext. 103, or johna@hudsongrp.com.
Subscribe at www.CareerCollegeCentral.com | 7
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MARCH 2013 | 8
12. kevin kuzma
Politics
Students
FIRST
Semantics at the heart of latest attack on for-profits
By Kevin Kuzma, Editor
MARCH 2013 | 10
13. The
title sounds noble: the no meaningful education, misusing taxpayer dollars, and
Students First Act. sticking students with the bill.” The paragraph concludes
with this statement: “A rising number of students at these
In those four words, you institutions are being forced to drop out and default on their
will find something you can stand behind – a cause we federal student loans.”
can all champion: protecting students from colleges and
universities preying on the unsuspecting through flashy The bad actors label is cause for concern for all career
marketing pieces and aggressive phone calling. (Actually, colleges. And the last statement referring to “these
make it two things we can stand behind: protecting institutions” perhaps should cause even greater anxiety.
students … and our dislike of intrusive marketers.) Why? Because Senator Harkin considers all for-profit
schools bad actors. By his vague definition, all career
Last week, U.S. Senators Tom Harkin, D-Iowa, colleges are overly aggressive in their marketing efforts,
Chairman of the Senate Health, Education, Labor and are not graduating students at high enough rates and are
Pensions (HELP) Committee, and Frank R. Lautenberg, essentially flawed institutions because of what he sees as
D-N.J., introduced the Students First Act to remedy the their motives.
Department of Education’s oversight of higher education
institutions that are taking advantage of students and The Students First Act is nothing more than Senator Harkin
taxpayers. upping the ante against for-profit colleges by granting the
Department of Education an expansion of power.
But pay no mind to the language they are using, specifically
the broad claim that the act targets institutions of higher While we all agree students should come first – no matter
education. Harkin, in his final term before retirement, what sector of higher education we might work in – we
is dedicating a large portion of his time to for-profit need to fight against this act. We need to take action before
bashing. The Students First Act is easily the biggest threat the Department of Education uses its power to unfairly
to all career schools since the advent of the Department of target career colleges – career colleges where students
Education’s gainful employment rule in 2010. are getting a quality education, a reality that occurs at the
overwhelming majority of for-profit schools.
The bill enhances the program review process, creating
triggers that require the Department of Education to Something else we can all agree on: Lawmakers and their
conduct program reviews of institutions most at risk of proposed solutions are not the answer for the betterment of
violating federal law. It also strengthens existing sanctions higher education. Their threats create dissension, put the
against colleges that knowingly and willfully violate various sectors of higher education at odds and carelessly
requirements of federal student aid programs and holds cause trouble for institutions that have done nothing wrong.
executives of those institutions personally accountable.
Students should definitely come first, but with this
Follow along with me, if you will, and read between the legislation, politics do.
lines of the language used in the HELP Committee’s press
release announcing the proposed legislation.
The language claims the act will help the Department of
Education act against schools taking advantage of low- Kevin Kuzma is Editor of Career College Central.
and middle-income students who rely upon federal student His feature writing, essays and short stories have
aid to help make college affordable. “Bad actors” are appeared in The Kansas City Star, Urban Times,
Review, Ink Magazine and Present Magazine. He can
specifically made targets and are defined as institutions be contacted at kevink@careercollegecentral.com.
that “are aggressively marketing to vulnerable students
in potentially illegal ways while often providing little or
Subscribe at www.CareerCollegeCentral.com | 11
14. tasha cerny
Senator Tom Harkin, D-Iowa
www.harkin.senate.gov
Behind the
Students
FIRST
ACT
Everything you need to know about
the legislation proposed by Senators
Harkin and Lautenberg
By Tasha Cerny, Staff Writer
MARCH 2013 | 12
15. U.S.
Senators Tom Harkin,
D-Iowa, Chairman of the Senator Frank R. Lautenberg, D-N.J.
Senate Health, Education, www.lautenberg.senate.gov
Labor and Pensions (HELP)
Committee, and Frank R. Lautenberg, D-N.J., introduced
a new piece of legislation on March 1, titled the Students
First Act, a proposal designed to reinforce and strengthen
the Department of Education’s supervision of institutions
of higher education and better hold accountable those
institutions profiting illegally from students and taxpayers.
Along with Senator Harkin and Senator Lautenberg, Senators
Richard Durbin, D-Ill., and John D. Rockefeller IV, D-W.V.,
are supporting the bill as co-sponsors.
The bill was proposed as a way to target and prevent the
actions of colleges and universities that take advantage of
students who receive federal student aid in order to reduce
their own costs and receive a higher profit. Senator Harkin
and Senator Lautenberg were noted in a letter sent to
Education Secretary Arne Duncan in December as having
put a large emphasis of this fraud on manipulation of student
loan default rates: “The for-profit sector consistently has the
highest default rates among colleges and universities … For-
profit colleges enroll only 13 percent of students, yet account
for almost half (47 percent) of all defaulted borrowers.”*
In a quote published in a Senate newsroom press release,
Senator Harkin said, “Plain and simple, students and taxpayers
expect federal dollars to be spent at colleges and universities
that provide a quality education. Unfortunately, there are
too many institutions that put other priorities over students’
academic success. This important legislation will help focus
the Department of Education’s efforts to effectively detect
and stop the patterns of waste, fraud and abuse that leave
students with mountains of debt and without degrees.”
The Students First Act adds to the program review process,
making investigations into fraudulent cases more thorough
and increasing the encompassing criteria that would require
the Department of Education to conduct program reviews.
The legislation also increases the current sanctions in place
for those institutions in violation, or at risk of violation, of
the requirements for federal student aid programs and holds
executives of these institutions personally accountable.
The legislation seems to focus specifically on the for-
profit sector of higher education, though the bill is worded
to encompass all higher education institutions. In the
letter from Senator Lautenberg and Senator Harkin sent to
Secretary Duncan, Senator Lautenberg states that, “For-profit
schools should not be able to use administrative smoke and
mirrors to circumvent regulations that protect students and
taxpayers, and the Department should take action to prevent
these tactics.”*
Subscribe at www.CareerCollegeCentral.com | 13
16. Specifically, the Students First Act:
Senator Tom Harkin, D-Iowa
• einforces overview of violating institutions by
R www.harkin.senate.gov
requiring department reviews of institution programs
engaged in risky behavior, such as serial forbearance,
default rate manipulation, exceeding the 20 percent
revenue spending limit on recruitment marketing,
and receiving more than 85 percent of revenue from
federal student aid sources
• ncourages the Department of Education to include
E
proactive program reviews for institutions according
to criteria related to default rate, total federal student
aid revenue, spikes in enrollment, complaints,
suspicious graduation rates, financial health and/or
profit margins
• equires institutions found in violation of these
R
stipulations to notify prospective students when and
why the institution is under review
• urther develops existing procedures by requiring
F
that all reviews assess abuse of the aforementioned
violations, as well as assess the institution’s financial
and administrative capabilities and program integrity
• pecifies that all program review personnel be
S
appropriately trained and that violating institutions
share program review results with federal and
state entities, including accrediting agencies and
associations
• ncreases the mandatory penalties for violating
I
institutions by revoking eligibility for federal student
aid and requires that the Department of Education
specify mandated sanctions for other violations
• nforces financial penalties for colleges and
E
universities that lose their eligibility and raises the
fines for breaching Title IV regulations
• ses funds from these penalties to provide financial
U * he letter to Secretary of Education Arne Duncan can
T
relief to students in attendance at violator schools be found here: http://www.lautenberg.senate.gov/assets/
default-manipulation.pdf
• ncreases recordkeeping for data collection and
I
complaint tracking and improves the current central Sources:
database on institutional accreditation, eligibility and http://www.help.senate.gov/newsroom/press/
certification release/?id=0cc7ef6b-40ce-49d8-b9be-
35b12b2fdb46groups=Chair
http://www.lautenberg.senate.gov/assets/StudentFirst.pdf
http://lautenberg.senate.gov/newsroom/record.
cfm?id=338110
MARCH 2013 | 14
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18. dr. susan schulz
Building
a Better
Externship
How great externships can result in
100 percent placement rates
By Dr. Susan F. Schulz, Susan F. Schulz Associates Inc.
19. E
xternships provide many benefits to career there. If not, there are many companies and community
schools, students, employers and the resources to locate potential externship hosts. These include
community. When structured effectively, chambers of commerce and professional organizations
students have the opportunity to gain related to your training, associations, unions and trade
valuable experience to add to their resumes, and publications.
employers can benefit from an extended interview
with a potential new hire. Externships can be crafted A benefit of reaching out to the community is the increased
for just about any program – even those with no contact with decision-makers. They can learn the benefits
clinical or internship/externship requirements. Planned of your institution as a source for training and staffing. In
effectively, externships can help career schools achieve addition, as you meet contacts in your community, you
high placement rates and enhance brand and image. learn about new jobs and meet people who can tell you
about these openings plus any new training needs.
Externships are great tools to address gainful
employment and other regulatory issues. One of the A current trend is to offer externship opportunities for all
best ways to counter bad press and accusations is with training programs, whether externships are required or not.
facts. Successful externships can result in high job Since career colleges typically serve individuals with little
statistics, enhanced relationships with and testimonies or no relevant work experience, this means it is a challenge
from employers, and a greater understanding by for them to develop effective resumes. When externships
the community of the value of the for-profit sector. are properly structured and required for all training,
Externships can impact all areas of the career school graduates gain work skills. In addition, they learn business
and result in increased enrollment, retention, placement and work ethics as well as soft skills, such as critical
and public relations opportunities. thinking, communications and teamwork, which rarely get
taught in class. They have an increased opportunity to land
The following provides an outline of successful a great first job and jump-start job retention and promotion.
externship strategies employed at several career schools This helps you to meet your placement commitment as a
and colleges. career training provider. In addition, you have an increased
ability to stay in touch with your graduates when you
have to report placement success and possibly salary. In
Start the process addition, when prospective students consider whether to
enroll in your school or a competitor’s, the school with the
To be successful, new initiatives often start with externships might win out!
an advisory board, either formal or informal.
Stakeholders discuss parameters such as budget,
staff, where externships are to be held and for Formalize the externship program
which programs, and how to craft an externship
unique to their institution. Additionally, regulatory Externships must be run in a highly organized way to
requirements also need to be considered at this time. achieve results. If you are starting out, this is the opportunity
Depending on your programs, externship experiences to set them up right. If you already offer externships, this is
may have regulatory guidelines dictating required the time to formalize them. First, determine if the training
clock hours, skills and learning objectives. you offer requires externships specified by your regulatory
agencies. If yes, what are the specifics in terms of clock
Initial steps include identifying current and prospective hours, skills requirements, evaluation and time frames?
externship sites. You may already have relationships These requirements will become the underpinnings of
with companies that allow your students to extern your externship program.
Subscribe at www.CareerCollegeCentral.com | 17
20. Successful externships can
result in high job statistics,
enhanced relationships
with and testimonies from
employers, and a greater
understanding by the
community of the value of
the for-profit sector.
MARCH 2013 | 18
21. Evaluation for results and benefits
When you begin the process, reach out to your Routine check-in strategies must be built into any
community to locate externship sites. Once you have initiative. Surveys, questionnaires and other forms of
found some matches, the next step is to formalize feedback yield valuable information from students
these relationships. This requires signed agreements. and externship supervisors. You need data to measure
Typically, externship sites have their own agreements success and determine what changes are required. Most
prepared by their legal departments showing liability, important, you have another way to stay connected to
responsibilities and more. Your institution’s externship the community and workplace decision-makers. You
agreement will outline what you expect: the number of have tools to continue to reach out to individuals and
hours your students will be at the site, the role of the companies that can benefit from your institution as a
on-site supervisor, the specific work to be performed, source for training and employees.
how often the student will get feedback and formal
evaluations, and more. Great externship programs can result in 100 percent
placement, plus many more benefits. Your placement
For your students to be successful and ultimately offered department may have a lot less work because of the work-
full-time positions, they must be prepared. Preparation ready training your graduates receive. Many careers
includes keeping the students' focus on placement require skills not always offered in the classroom, such
and helping them to act as if they were taking part in as the use of new equipment or procedures, especially
an extended job interview. It means training them to in middle- and high-skills jobs. This means that
believe they have the skills to successfully complete companies may have to spend weeks training new hires
the externship. Most important, they need the mindset to meet their specific way of doing business. Much the
to assert themselves as valuable players so they can way apprenticeships used to, externships can head off
possibly be offered salaried positions! that problem and afford you the added benefit of being
able to promote your graduates as being trained to meet
Your externship advisory board can help determine how employers’ specific needs.
to train students to be successful externs. Requirements
to consider include: completion of specific courses and Schools with outstanding externship programs attract
required grades, demonstration of skills, employment an increased number of qualified enrollments. There
readiness, self-confidence, ability to work with others, are more referral students from happy graduates as
and more. Students typically benefit from having an well as an increased number of community contacts.
externship mentor as their go-to person for immediate Retention increases because students are motivated
answers to questions and dilemmas. to get to the externship stage of their training. You
have the opportunity to reach out to the community
When formalizing your externship program, to build job listings as well as additional externship
documents outlining regulatory agency requirements, sites. Most important, you enhance the image of
skills requirements, institution on-site and workplace the for-profit sector and reach out to an increased
coordinator responsibilities, and methods for tracking number of individuals whose lives you can help
results can be helpful in making sure your externship change with training.
program stays on track.
Dr. Susan F. Schulz has been working in the adult
education and career school sector for nearly 20 years.
She is President of Susan F. Schulz Associates Inc.
and owner of Schools for Sale International Inc. She
can be contacted at susan@susanfschulz.com or
561.483.9554.
Subscribe at www.CareerCollegeCentral.com | 19
22. brdjen crewe
Inflated
Dreams?
Bypassing education for bigger dreams
is quickly becoming one version of the
American dream
By Brjden Crewe, Contributing Writer
It’s
simple math, really. A theorem, if you will. them to somehow morph into the billionaire superstars that they
The more education you receive, the more look up to on television. And no matter how rare or isolated the
you increase your chances of becoming success stories of their role models seem to be, these students never
anything you want professionally, thus controlling your seriously take into account the probabilities of failure. Every one of
financial future. OK, so it’s not exactly the most technical of them believes they are one in a million.
mathematical equations, but it’s true.
One of my professors once told me that “dreams are only for the
Today, we witness the rise of businesspeople who have dropped unconscious.” He reminded me of this statement later when I
out of school and wear Levi’s jeans to multimillion-dollar board told him that I would be volunteering as a mentor/tutor for at-risk
meetings, a trend that lends the illusion of accessibility to our children in the public school system four years after I first took his
own dreams of success; success suddenly seems attainable and class. Because he wouldn’t expound on what exactly he meant by
attractive without the necessity of a college degree. But no matter that statement as it pertained to my new venture, I was left to make
how many Mark Zuckerbergs or Jay-Zs defy conventional logic my own assumptions. Though he commended me on my efforts,
as seemingly overnight millionaire entrepreneurs, the path I believe he was trying to tell me that I was dreaming if I thought
to professional success has been and always will be through that I could change the world by going down this path, and I should
education. wake up and do something more financially fulfilling and useful. I
took those thoughts with me throughout my time volunteering, but
A firsthand look at being blind something about what he was saying still felt weird.
As a tutor and junior high mentor for the Las Vegas Clark County
school district, I’ve encountered the naivety of unfocused and As I performed my duties, the more students I listened to and gave
unprepared optimism that comes with the dreams of assorted advice to, the more I learned that their hopes and dreams were
success sans education and planning. Many of the middle school enormous, but their thirst for education didn’t match their ambition.
students I interact with believe that a willingness to achieve their Every child wants to be a famous professional and/or make lots of
dreams is enough to influence the forces of destiny, allowing money doing something that they believe they were born to do. In
MARCH 2013 | 20
23. all the years I’ve been tutoring, I’ve never heard one teenager say process of making a dream a reality. And once you’re awake,
that he or she would like to grow up and be a middle manager or it’s your goals that make your dreams come to life. I later texted
a day laborer. Their professional ambitions are always of great my professor what I believed he was saying. He simply texted
importance and stature. Even to this day, on many occasions, me back:
I try to help them realize the importance of school and the
benefits it will have on whatever they’d like to accomplish Work ethic + education =
professionally, but only a few take in what I’m saying.
financial independence
I was told that millionaires are made during a recession.
After a while, I began working with children from all Savvy, intelligent and motivated businesspeople driven enough
environments – not just at-risk children in public schools. to provide an in-demand product or service could make heavy
Working with independent charity organizations, I’ve been able waves in their bank accounts during the economic climate today.
to meet and listen to children of all ethnicities and backgrounds, But even though the Internet, television and the invention of the
and I’ve discovered that blindly ambitious optimism is consistent Snuggie feed the perception that young businesspeople can easily
among children of vastly different economic and educational make millions of dollars, the path to riches isn't as quick as it may
backgrounds. They all believe they are going to be who they seem. Today's entrepreneurs want it fast, want it now and, in most
want to be because of sheer independent will, and because life instances, want the success without expending the effort needed to
owes them a fulfillment of their date with destiny. And the more be a successful businessperson in the long run.
I experienced it among the children I was meeting, the more I
began to understand what my professor was saying.
For every Mark Zuckerberg,
No one should ever take away a child’s dream (or an adult’s for there are millions of other
that matter). Dreams give us a reason to live and provide us with
the hope that one day life will finally reward and high school and college
repay us for all of the torturous time we’ve dropouts who tried to
spent fruitlessly longing for the fulfillment
of our aspirations. Dreams matter. But create their own
what I now understand about my megacorporations
professor’s comment is that waking
up is an essential part of the but failed and
were left without
a college degree
to fall back on.
Subscribe at www.CareerCollegeCentral.com | 21
24. Once upon a time, the American dream was to be able to provide 1 ark Zuckerberg was intelligent and educated enough to
M
a better life for your family. Education for your children, a actually get into Harvard
home of your own and three meals a day all came courtesy of
a simple, financially stable job that dad (or mom) was proud 2 or every Mark Zuckerberg, there are millions of other high
F
to perform five or six days a week, eight to 12 hours a day. school and college dropouts who tried to create their own
Sure, many people had the Ralph Kramden get-rich-quick megacorporations but failed and were left without a college
dreams of financial independence, but keeping your day job and degree to fall back on. Many of the trials and difficulties that
making sure that your initial dream stayed in focus was first and characterize the path of a Mark Zuckerberg at times go unseen
foremost. Today, thanks to the high-speed and lavish lifestyle and unnoticed, but his success at such a young age coupled
images of the stockbrokers in the 1980s and 1990s, hip-hop with his lack of a college degree inspires the kind of dream
and music moguls, and the T-shirt-wearing millionaire Internet that many promising (and oftentimes lazy) entrepreneurs hope
entrepreneurs of the past 10 years, the glamorized accessibility to replicate with their own businesses and creations. They are
of how we define and view what we can achieve has shifted. pursuing the new American dream
“Why can’t I be the next Sean Parker? I wear T-shirts, too!”
What dreams may become
The new American dream is to own your own company and On the eve of what's sure to be marked as the 12-year anniversary
provide others with jobs – a luxury once afforded only to those of our war efforts in the Middle East, we're faced with a
educated and privileged enough to have such a company handed struggling economy, diminished middle class and one of the
to them. We no longer aspire to simply get by financially or worst unemployment rates in 80 years. We have seen countries
to support our families while we spend two-thirds of our days such as India, Japan and Finland continue their strides toward
working for a company that doesn’t appreciate us. Today's implementing innovative learning programs and placing a high
instant entrepreneur thinks big and dreams even bigger. But priority on education while the United States continues to see its
does this ambition have a foundation of strong educational roots international rankings sink lower each year while it places higher
and solid experience, or has the success of new, more relatable priorities on voting issues and government spending. As we search
millionaire businesspeople today made it look a little too easy? for the answer to how we can climb out of an economic cesspool, the
answer to bringing back the integrity of America as a superpower
I often hear many young entrepreneurs note that Mark known throughout the world may be right under our illiterate noses:
Zuckerberg, Co-Founder and CEO/President of Facebook, E-D-U-C-A-T-I-O-N. And guess what. I wrote that without the aid
dropped out of Harvard and successfully created a multibillion of spell-checker because of my own.
dollar corporation when they speak in defense of the superfluity
of a college degree in order to succeed in business today. Here The moral of the story is that today's instant entrepreneurs need
are two things worth noting: not give up on their dreams or chase those dreams without a plan.
Education, stability and patience are essential in gaining financial
success in your professional life. You may not be the next Diddy or
Myspace founder, but who's to say that you won't be even bigger?
The only sure way to ensure a bright future for yourself is to pursue
higher education no matter what your journey. Following a dream
can mean a number of things, but expecting success without the aid
of education may be enough to wake you up to the cold, hard reality
of what it truly means to survive without education.
Brjden Crewe has been in radio for more than eight
years and is a writer for a number of well-respected
publications nationwide, including MTV.com, BET.
com, SonicMusicMonkey.com and a number of local
publications. He currently writes for Las Vegas Sun,
Review-Journal, Las Vegas Weekly, The Daily Scene,
VegasDeluxe.com, Las Vegas Magazine, Vegas
Magazine, and Vegas Rated Seven Magazine.
MARCH 2013 | 22
25. It was a search
that an swered a question
t hat inspired an inquiry
tha t launched a future
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to deliver data-driven strategies that increase
enrollments. If you’re ready to work with a
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education, step up to PlattForm.
913.254.6000
PlattFormAd.com
Subscribe at www.CareerCollegeCentral.com | 23
26. dr. pete savo
Cash or
Class?
Rekindle the
entrepreneurial
spirit within the
young at heart
By Dr. Pietro (Pete) Savo The entrepreneurial gene goes dormant or is lost forever because
Service Disabled Veteran Owned open creative minds are soon focused on grades and earning an
Small Business education. The priority of entrepreneurial creativity is lost, too. This
is particularly troubling because humanity has risen to the top of
P
the food chain thanks to the risk that comes from creative thinking.
eter Thiel from the Thiel Foundation recently gave a This writer feels it was creative thought and the entrepreneurial
new class of students $100,000 to forgo college. His spirit that drove us out of caves to cross large landmasses to
monetary prizes were to encourage students to drop create a better life. It is no different from developing successful
out of college and become entrepreneurs on their own, businesses today. The spirit to take flight, take risk and accomplish
before college ruined their entrepreneurial spirit. Thiel holds the finishes second to caution and the fear of failure. What’s lost is
perception that higher education impedes, rather than enhances, the the understanding that inventiveness and creativity are important
development of creative ideas. Does this statement have merit? To stimulators for ensuring the learning process.
find the answer, we first need to understand the issue.
Entrepreneurship is a natural ability. We all have the
Once young minds get to college at the undergraduate level, entrepreneurship gene, although some people exercise it and
these students become trained to follow a standard principle of some don't. Imagine if an even greater percentage of people
book learning. The lecture hall echoes rhetoric being force-fed found a way to thrive using entrepreneurial thinking? There are
to students by professors who oftentimes have been in academia some very successful technology entrepreneurs, for example Bill
all their careers and not directly contributing to developing Gates, Michael Dell and Mark Zuckerberg, who never graduated
successful practices in business. Many college and university from college. J.R. Simplot, who died at the age of 99 with a net
students are refined out of being imaginative. Simply stated, worth of $3.6 billion, created one of the largest privately held
students forget what it is like to encourage their imagination to food and agribusiness companies in the nation – all without ever
voyage beyond book learning. attending college.
MARCH 2013 | 24
27. Carl J. Schramm, a professor at Syracuse University and co-author • ith a young fearless mind, everything is possible; an experienced
W
of Better Capitalism, indicates that the rate of starting new firms entrepreneurial mentor is perhaps what you need
has fallen off. Beginning in 2009, the average annual number of
entrepreneurial-driven new start-up businesses has fallen from • on’t wait for college. Imagine if we could incorporate an
D
a steady state of roughly 700,000 to 500,000. This research also innovative attitude into a middle school or high school setting
claims that the decline eliminated the growth potential for 200,000
to 1,000,000 new jobs that simply were not created. Perhaps the perception that higher education impedes rather than
enhances the development of creative ideas is not entirely true.
Our nation’s defenders of job growth are the entrepreneurs building Obstructions of entrepreneurial ideas are more a result of not being
small businesses. According to the Census Bureau, in 2009 alone prepared for the demands of every changing evolutionary obstacle
more than 552,000 companies with at least one employee were that humanity must endure.
launched. Small firms accounted for 65 percent of the 15 million net
new jobs created between 1993 and 2009, which equals a substantial
9.8 million positions (Ramachandran, 2012).
Our goal must be to
The results of the past are impressive, but we may have to reinvent
the wheel a few times to find the secret for the future. Today's world
bring back generations
is far different from yesterday's world, and the new traditional of creativeness as a
education is a different beast born out of necessity. In October
2011, the U.S. Bureau of Labor Statistics reported that 68.3 percent
proactive approach to
of 2011 high school graduates were currently enrolled in colleges entrepreneurial thinking.
or universities.
The effort is made to differentiate between education based on Entrepreneurship is born out of need, as much as creativity is a natural
assumption, consumption of knowledge, and social experiences byproduct of being at the top of the food chain. As the planet becomes
existing between educators and students. Our goal must be to more crowded, entrepreneurship becomes more critical to humanity’s
bring back generations of creativeness as a proactive approach survivability. Survivability resulting in prosperity will become
to entrepreneurial thinking. Entrepreneurial thinking becomes dependent not so much on obtaining a college or university degree,
a consequence of shared learning between educator and student but more on inspiring as many serial entrepreneurs as possible. Make
(Ageyev, 2012). It is safe to say the solutions for empowering Bill Gates, Michael Dell, Mark Zuckerberg and J.R. Simplot the norm,
entrepreneurial thinking rest in higher education. Since problems not the exception to the rule.
become less of a problem by collaborative, common-sense
solutions, here are some academic solutions to bring about Sources:
Ageyev, V. (2012). Psychological foundations of creative education. Creative
entrepreneurial thinking for those who did not win the Thiel Education, 3(1), 1+
Foundation $100,000 prizes.
Ramachandran, D. (2012). The Government Doesn’t Create Jobs: Entrepreneurs Do.
Secret Entourage, 2
• Recruit entrepreneurs to develop and create a class around their
own successful entrepreneurial experiences. Then offer courses Schramm, C., Litan, R., (2012). Better Capitalism, Yale University Press
and experiences to prepare interested students to be successful
entrepreneurs. In this way, a student will be better equipped Shane, S., (2010). The College Dropout Turned Billionaire Entrepreneur, Bloomberg
BusinessWeek
to engage in taking the risk and experiencing the real world,
including its challenges and disappointments
Dr. Pete Savo is the Chief Financial Officer of a Service
• Find out what motivates the individual, because one size does not
Disabled Veteran Owned Small Business (SDVOSB), a
fit all. Motivation becomes the central emotional drive that has higher education service business that provides qualified
student candidates to military-friendly colleges and
the power to advance people. Such activities are fun, motivating universities nationwide. Savo, a respected lecturer and
and thought-provoking to take part in, and they encourage the published author, was employed 18 years with Sikorsky
students' natural crazy gene to float to the surface Aircraft and six years as a direct business operations
and lean manufacturing consultant for the U.S. Air Force
Small Business Manufacturing Technical Assistance Production Program
• Incorporate a variety of innovative entrepreneurial strategies
(MTAPP), Air Force Outreach Program Office and the Department of Defense
(DOD) supply chain missions. He can be reached at psavo@education-
to prepare students to be successful in whichever career they resource-information.org or 603.321.6224.
choose
Subscribe at www.CareerCollegeCentral.com | 25
28. jenni valentino
Paying
Dues Obama, Congress attempt to get
ahead of the nation’s struggles with
financial aid
By Jenni Valentino, Staff Writer
T
hough the time between President Barack have combined to form the perfect storm of student loan debt. Even
Obama’s re-election and second-term those who did everything “right” – attended public universities,
inauguration was dominated by raucous debate graduated in four years and leaned on their solid support systems
over gun control and panic over the fiscal cliff, – are struggling with debt loads that outweigh their incomes.
millions of students around the country still wait to hear
what will come of their quieter, looming struggle with Beth D. graduated from the University of Maine in 2010 with
student loans. a B.A. in History. She owes $110,000 in student loans and is
currently working retail part time after being laid off from her
Skyrocketing tuition costs, a confusing and disjointed full-time job.
financial aid system, and a slow-going economic recovery
MARCH 2013 | 26
29. A survey led by Wonderlic of Imagine America Foundation
scholarship and award applicants in 2012, found that 82
percent of respondents had to take out student loans for
school. The alarming news, 55 percent of those students
“A big part of my negative experience and tremendous sense did not understand all aspects of the student loan process.
of guilt is that my parents said they'd handle everything. I was
brought up to never talk about money, so I stuck my head in What specifically did students not
the sand,” she said. “I was also taught it didn't matter what understand?
you studied in college. I thought that as long as I got a degree, • 9 percent did not understand the difference between
6
I’d be able to get a job that paid well enough to cover my federal loans and private loans
loans. When I graduated right in the middle of the recession, • 5 percent did not understand the repayment options
4
I was able to find a job, but it wasn't enough for me to live on • 9 percent did not understand the interest accrued on
3
my own, let alone pay my loans off by myself. My parents loans
are left helping me pay them off at the expense of their own • 4 percent did not understand their monthly payment
1
retirement. amount
“While no one could have seen the economy being this bad One approach to solving this financial illiteracy problem,
in 2005 when I was picking a college, I take responsibility that shows promise, is a short online resource developed
for the fact that I should have made more of an effort to and provided by the Imagine America Foundation called
be informed about what I was signing and what it meant,” Financial Planning Made Simple (FPMS). After watching
she said. “But how do you make a 17-year-old see beyond an 18-minute video on the basics of budgeting, borrowing
the dreams colleges are selling to the possibility of a future and the repayment process, 49 percent of respondents said
economic collapse?” they decided to borrow less money for school.
The student loan problem is important – even defining – to How much less?
individual students, of course. But according to some policy • 37 percent borrowed $2,500 or less
analysts, it is also an area in which Obama and the 112th • 33 percent borrowed $2,501 to $5,000 less
Congress can make great strides toward overall economic • 10 percent borrowed $5,001 to $7,500 less
improvement. • 6 percent borrowed $7,501 to $10,000 less
• 14 percent borrowed more than $10,000 less
Throughout his tenure, Obama has been a proponent of
higher education accessibility and affordability. He supports
Pell Grants, direct student loans, transparency and efforts The results suggest the magnitude of the potential
to launch the United States back to the upper echelon of savings based on just one year of borrowing. Reducing
college-educated citizenries. He put American colleges and student debt by using the effective training and planning
universities “on notice” in his State of the Union address in tools such as the one provided by the Imagine America
2012. However, throughout his first term, this support seemed Foundation could result in major savings to students and
to be relegated to ideas and dreams. What American students the federal government. According to an analysis done by
need now from the President and his Congress is actionable JBL Associates, if half of the 10.4 million Stafford Loan
strategy. borrowers reduced the amount borrowed by a third, as
was estimated in this study, students would borrow $27.8
billion less in Stafford Loans annually. It is reasonable to
assume that the smaller loan amounts would translate into
lower default rates in the future.
Having more borrowers use the Financial Planning Made
Simple tool could reduce dependence on loans by helping
students be realistic about their immediate financial needs
and anticipate the long-term repayment burden. Having
each new borrower spend 20 minutes learning about student
loans and developing a personal budget before taking out a
loan could help eliminate unnecessary debt and reduce the
longer-term risk of defaults.
Subscribe at www.CareerCollegeCentral.com | 27
30. Payment
“We’re at the early stages of a transformation – 10 years from
now, higher education won’t look the same,” said Richard
Plans
Vedder, an Ohio University economics professor who directs the
Center for College Affordability and Productivity, in a December
2012 Businessweek article. “There are millions of people feeling
the pain of student debt. When that number gets big enough, it
starts to permeate the public consciousness.”
In 2012, American student loan debt passed $1 trillion, raising the
More students’ struggles question: Why is that number not big enough already? The answer
likely lies in the power of the university. For decades, the $500
with student debt billion-a-year higher education industry has been permitted to
increase tuition prices at rates far outpacing inflation and average
Renata S., a 2010 graduate of Rutgers University, still owes income levels. Through its $100 million-a-year lobbying efforts,
$15,000 for her B.A. in Biology. Her position in regulatory it has been able to rail against a decade’s worth of cost-control
affairs at a large biopharmaceutical company does not pay measures enacted by the Bush and Obama administrations. And
enough to cover her loans. “Paying off my student loans it has consistently confused students with the complexity of the
would be impossible without my parents,” she said. “My student loan process.
husband and I don’t currently bring in enough to pay for
our household bills and to also pay down the student loans. “Too often, students receive financial aid award letters that are
Fortunately, my parents have graciously offered to pay my laden with jargon, use inconsistent terms and calculations, and
monthly student loan payment until they are retired, which make it unnecessarily difficult to compare different financial
is about five years away. At that point, I’ll have to take aid awards side by side,” said Richard Cordray, Director of the
them over. I hope our finances will be in order by then.” Consumer Financial Protection Bureau.
Lauren P. graduated with a Master’s degree and
coursework for her Ph.D. from Tyler School of Art at
Temple University. She is currently an adjunct art history
instructor at a four-year university and a community
college. She owes $86,000 in government loans and “ ut how do you make a
B
$10,000 in GATE loans. “I do not make anywhere near
enough money to make the traditional payment on my
17-year-old see beyond
government loan, but at least they are working with me the dreams colleges are
based on my income. My private loans do not work with
me at all. The interest rate is alarming. I cannot defer
selling to the possibility
nor can I arrange smaller payments or a longer payment of a future economic
schedule. I wish my parents would have explained it to me
better, or I wish the student loan company would have laid collapse?”
out the terms more clearly. The payments are crippling,
– Beth D.
especially in the summer when I work less.”
University of Maine graduate
MARCH 2013 | 28