Last Thursday, Purdue University announced its plans to purchase Kaplan University. The educational institution will obtain the for-profit school system with only $1. Purdue intends to transform the university into a liberal, state funded college in Indiana that focuses on individuals who are considered nontraditional students. The school announced its unforeseen declaration to the public during a filing with the U.S. Securities and Exchange Commission. Purdue's leading group of trustees affirmed the arrangement.
What the new development entails
In the filing, approximately 32,000 students currently enrolled at Kaplan will successfully transfer to the new college. No one knows what Purdue plans to name the new institution. That information remains anonymous to this day. The goal is to have Kaplan College operating the new establishment. The school plans to gain 12.5 percent of the anticipated college’s annual revenue over the course of three decades.
The U.S. Department Of Education intends to endorse the arrangement with Purdue after Obama’s administration rejected similar methods a few years ago. The Trump administration indicated that it would bring back more government controls that allow colleges and universities to expand their businesses.
Purdue stated that its new college would conduct its operations online for the most part. It plans to open more than 15 on-campus locations nationwide, incorporating one of them in Indianapolis, IN.
Mitch Daniels is a former governor of Indiana and the current president of Purdue University. The political leader announced last week that the arrangement would enable the college to extend its services to working adults and veterans alike, who wish to pursue furthering their education.
Daniels also announced during a press conference with BuzzFeed that Purdue University plans to elect Kaplan president Betty Vandenbosch as chancellor of the new college.
In the meeting with BuzzFeed
Many organizations who are currently operating multiple colleges and universities are starting to engage in agreements involving revenue sharing.
BuzzFeed announced, however, that there have been several times where these arrangements from what critics describe as incognito, revenue driven schools that are diligently operating with less government oversight. Pundits believe such exchanges can likewise diminish effective business controls implemented by the Department of Education.
They say that the situations will debilitate government financing for schools and cause students to graduate with excessive amounts of debt imbalanced by entry-level income.
