Leaving Profit Behind
by Daniel Luzer
Stevens-Henager College, a for-profit college with several campuses in the Southwest, has apparently become a nonprofit institution.
Stevens-Henager, headquartered in Ogden, Utah, focuses on training people for jobs in healthcare, accounting, computer technology, and graphic arts. The Idaho Statesman reports that,
Making the change, which took effect Jan. 1, allows the school to seek donations for scholarship programs it is expanding and to accept equipment donated for its schools, CEO Eric Juhlin told the Idaho Statesman.
Stevens-Henager also made the change to meet the long-term vision of its single shareholder, Carl Barney, who purchased Stevens-Henager about 15 years ago, Juhlin said.
Well yes, that could be it. It’s also possible switching to nonprofit status could help the college get around the Department of Education’s gainful employment rule, under which in order to continue to receive federal funding for-profit colleges must make sure that at least 35 percent of former students are paying down their loans, former students must not have to pay more than 30 percent of their discretionary income on loan payments, and former students must not spend more than 12 percent of their total income on loan payments.
Stevens-Henager graduates seem to be having some trouble meeting these standards. According to this report, a quarter of the institution’s programs were not meeting standards for loan repayment and income data.
Kaiser University, a proprietary college in Florida, also made the switch. It became a nonprofit college two years ago.