APC Student Lobby Day:

More than 85 students and staff from APC member colleges met at the State Capitol on Wednesday, March 6, for the 2019 Student Lobby Day. College leaders highlighted the needs of APC students, their success and on-time degree graduation rates, and shared stories of local business executives who rely on these students to fill critical positions every day. Students attending APC member colleges told legislators about their positive college experiences and the important role that TAP and the ETA program played in their ability attend college.

 

Legislative Hearing Testimony

 

Governor Cuomo’s Proposed For-Profit College Accountability Act:

In many ways, the goals of APC align with Governor Cuomo’s goal of expanding access to higher education and combating student debt and “practices that increase student debt.”   However, we believe that the Governor’s proposed For-Profit College Accountability Act is flawed, not only because it targets just the proprietary sector but also because it ignores the long history of strong student outcomes and success demonstrated by this sector.

Governor Cuomo’s proposed 2019-2020 budget would decimate the proprietary sector (both degree granting and non-degree) entirely. APC member colleges have a track record of strong academic outcomes such as on-time associate degree graduation rates being higher than other sectors, number of degrees conferred, job placement rates and the lower than average student debt.

Among the most problematic elements of Governor Cuomo’s accountability proposal are:

The 80/20 Rule: Require for-profit schools to report their funding sources and demonstrate that they are not receiving more than 80 percent of their tuition revenue from public sources, including need based student financial aid programs such as TAP and Pell as well as student loans that are backed by the federal government.

For the first time ever, New York is trying to restrict student choice and opportunity by limiting the amount of tuition revenue a college can receive from public sources. While on the face of the proposal it may seem logical to require for-profit colleges to have revenue from non-public sources, the reality is the proposal is targeting low-income and minority students that depend on federal and state grant and loan programs to attend college.

Since 1992, the federal government has regulated the amount of federal funds a for-profit college can receive from tuition revenue. The federal rule is referred to as “90/10” meaning that 10 percent of tuition revenue must come from a private source other than Pell or federally backed student loans. The federal rule does not look at financial supports provided to veterans through the GI bill or any state or local grant or loan programs. All APC member colleges meet the federal measure without difficulty. On average the colleges receive 60% of their tuition revenue from Pell and federally backed student loans.

The Governor’s 80/20 proposal would not only increase the amount of revenue that must come from private sources, it also significantly expands what is a public source. Under the proposal, a public source includes:
• TAP;
• ETA;
• All federal student loan and grant programs; and
• ANY Other local, state, or federal government loan, grant or scholarship program utilized to pay tuition, institutional fees, room and board, or other costs of attendance on behalf of a student.

Essentially, any federal, state, or local loan or grant program would be included in the 80% calculation. Many APC member colleges serve a high number of low income, minority or first generation students who utilize need based programs such as TAP and Pell to gain access to higher education. Students attending public, private, and for-profit colleges rely on federally backed loans to finance their education. Very few students can afford to pay 100% of their tuition, fees, room and board without some type of public assistance.

50% on Instruction: Require that for-profit schools spend at least 50% of their revenues on student instruction

APC supports the philosophy behind this proposal but believe it is flawed because instruction is only one component of what low income and minority students need to succeed and graduate. Under the Governor’s proposal, for-profit colleges would be required to spend at least 50% of their revenue on salaries, benefits, and professional development of classroom instructors. This definition completely disregards the substantial investment many of New York’s proprietary institutions make in student academic support programs and personnel, wrap around services and other capital improvements made to ensure our students successfully graduate on time and find jobs in their field of study.

No APC member colleges will meet this metric and in fact, over 65% of all four year colleges in all sectors of higher education in New York do not meet this measure. For instance, highly respected institutions such as NYU (30%), Cornell University (33%) and The Julliard School (33%) would not meet this metric. One of the keys to our students’ success is the use of adjunct and part time faculty that often provides access to student internships. APC member colleges are proud of the investments they make in student instruction and academic support: For every $1.00 in revenue received by an APC member college, approximately 93 cents are spent on the instruction and support of students.

APC member colleges are committed to helping their students succeed. The majority of the 26,000 students enrolling at an APC member college are coming directly from our urban public schools that have high school graduation rates of approximately 50%. Students enter college need remediation but also supports to stay on track. Strong academics require talented faculty and instructors. However, students cannot learn or take advantage of the opportunity if they cannot afford tuition, day care, transportation, food and the necessities of life. Further, many students attending APC member colleges, were previously enrolled at a college where they did not succeed. Students enroll, graduate on-time, and find jobs in their field of study because of the personalized attention and supports they receive which include everything from help with their resume, finding internships and job opportunities, counseling and mentoring, financial literacy, and development of soft skills that set them apart when entering the job market. All of these supports, come directly from the college, and are funded through tuition revenues, since the college must manage all costs with tuition received.

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Link to Full Legislative Hearing Testimony Here

Link to Fast Facts Infographic Shared with Legislators Here

Link to FAQ’s

APC member colleges are fully committed to ensuring students have the best faculty and instruction possible. However, the Governor’s proposal does nothing to ensure or accomplish this.