College Guide


August 30, 2010 3:02 PM Full Disclosure

By Daniel Luzer


On August 22 the Washington Post ran an editorial about American for-profit colleges. The Obama administration’s efforts to crack down on abuses of proprietary colleges, and the new gainful employment rule—under which colleges would be ineligible for federal financial aid if the average graduate needs to spend more than 8 percent of his starting salary to service student loans—will make it difficult to achieve President Obama’s goal of making the United States the world leader in college graduates. As the editorial explains:

It’s difficult to imagine achieving Mr. Obama’s goal of 8 million more college graduates by 2020 if the for-profit sector is severely constricted. …About 9 per cent of the nation’s 25 million college students were attending tax-paying schools such as Kaplan or Strayer University, and the number has been growing rapidly. It’s been growing because for-profit schools have been adept at meeting the needs of working students who want to advance their careers but can afford to study only part-time and, often, online.

Kaplan University, however, is actually owned by the Washington Post Company. The editorial acknowledges this interesting situation with the following paragraph:

Readers should know that we have a conflict of interest regarding this subject. The Washington Post Co., which owns the Post newspaper and, also owns Kaplan University and other for-profit schools of higher education that, according to company officials, could be harmed by the proposed regulations.

Is that enough? The problem is that Kaplan is not just an investment of the Washington Post Company; it’s actually the profit of the company. Kaplan U. accounted for almost 60 percent of the company’s revenue. Actual publishing of newspapers and magazines made up only 19 percent of the company’s income.

The Washington Post is always very careful to acknowledge, in any article it writes about Kaplan in particular or the for-profit college industry in general, its own relationship to the company. What it neglects to mention, however, is that without Kaplan, the Washington Post probably can’t exist.

To address this issue, Justin Peters, editor at the Columbia Journalism Review and frequent Monthly contributor, spoke recently with the College Guide. (A slightly altered version of this post appears on the CJR website.)

Washington Monthly: Given the financial relationship that the Post has with one for-profit school, is that full disclosure statement enough?

Justin Peters: I agree that full disclosure doesn’t seem to entirely capture what’s going on with Kaplan.

WM: But there’s something interesting about the nature of that full disclosure thing. The paper actually steps all over itself to explain this in every article about for-profit schools.

JP: Well, what more can the Post do? Divest itself of Kaplan? That’s not reasonable. Kaplan’s the only thing keeping that company in business. Not report on these issues? That doesn’t seem like a great idea either

WM: Well right. That’s the thing. Full disclosure would be more like “the Washington Post would totally go bankrupt without Kaplan.”

JP: Yeah. “This newspaper would not be here if not for LSAT prep courses and proprietary schools, but trust our reporting anyway!”

WM: It actually didn’t seem like a problem until that particular editorial. In general the Post’s coverage of the for-profit education industry has been very straightforward.

JP: If the Post is going to run editorials like that, then it should perhaps also give some space on the same page or opposite that page for an independent observer to write about Kaplan and Kaplan University. Like a counterpoint thing.

WM: I mean, there is a discussion about that very issue.

JP: Like, really digging into that “high-pressure recruiting” the Post mentions in its editorial.

WM: But how can you not question when the Post has an editorial that looks like it was written by the president of the University of Phoenix, or some less legitimate proprietary college.

JP: Seriously. It’s like that Simpsons episode where the energy bar company sponsors the newscast. “This just in: Powersauce is amazing!”

WM: Like “more poor people might be cut out of college,” as the editorial says. And that’s enough? That’s the whole problem, really? It seems like that might be a very good opportunity for someone else to explain that just because for-profit schools enroll lots of low-income people doesn’t necessarily mean it’s all great. It’s still possible to do a much better job.

JP: It’s okay that they write about this sort of thing. It would be weird if the Post didn’t. But if the paper is going to write about the issue, it should give equal space for an ombudsman of some sort to evaluate the editorial’s claims.

WM: Do other papers have that sort of thing? Is there any other paper with a similarly odd business model?

JP: Well….

WM: Surely, something like this must have come up before. Well, I can just remember how sometimes like GE workers would strike—

JP: GE owns NBC.

WM: —and Tom Brokaw would do the story and at the end be like “GE is the parent corporation of this broadcasting company.”

JP: Just recently, News Corp., the parent company of the Wall Street Journal and Fox News, gave a million dollars to the Republican Governors Association.

WM: That’s a little more indirect, however.

JP: Tribune Company used to own the Chicago Cubs

WM: That could have resulted in some interesting editorials.

JP: “What this country needs is more baseball!”

Daniel Luzer is the news editor at Governing Magazine and former web editor of the Washington Monthly. Find him on Twitter: @Daniel_Luzer


  • Suellen on October 14, 2010 11:25 AM:

    I think it's great that Obama is trying to raise the statistics of college graduates by 2020. I would love to see colleges in South Carolina output more graduates than in the years past.