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Well, Dr. Gray is gone. You remember him, right? The CEO of ACICS who couldn't find any evidence that Corinthian students had been defrauded?

I’ve received information that Albert C. Gray, who has been the President and Chief Executive Officer of the controversial accrediting body the Accrediting Council for Independent Colleges and Schools (ACICS), may be leaving that organization.

Sunday afternoon I emailed Anthony Bieda, ACICS’s Vice President of External Affairs, asking him about this information — that his group’s CEO would no longer be CEO. Bieda replied: “No comment, on behalf of the Board of ACICS.”

UPDATE 04-18-16 9:30 am: This morning, Albert Gray’s name no longer appears on the ACICS website staff page. Anthony Bieda’s title has been changed to “Executive in Charge.”

Gray and ACICS board chair Lawrence Leak did not respond to requests for comment.

Gray’s failed defenses of the troubled accreditor have made him an easy target for criticism, and based on ACICS’s record, it appears he deserves such criticism. But if indeed Gray leaves ACICS, his departure is unlikely to end the inquiry into whether the U.S. Department of Education should keep recognizing ACICS as a guarantor of educational quality. And it shouldn’t end that inquiry.

ACICS has been under fire in recent months, given that a number of the schools it was supposed to oversee, including the now-collapsed Corinthian Colleges, have been exposed as predatory companies that have left many students worse off than when they started.

Accreditation by non-profit bodies like ACICS makes schools eligible to receive federal student grants and loans, and ACICS schools have been receiving billions annually in such aid. But many ACICS-approved schools, not just Corinthian, have poor track records — including those owned by predatory companies ITT Tech, Kaplan, EDMC (the Art Institutes), Career Education Corporation (Sanford-Brown), Alta Colleges (Westwood), Globe, FastTrain, and Daymar; all these companies have been under investigation by law enforcement for deceptive practices.

The latest ACICS-accredited school to make news is Kansas-based Wright Career College, which late last week suddenly filed for bankruptcy and shut its campuses, leaving about 1,000 students in limbo.

Gray endured a blistering cross-examination by Senator Elizabeth Warren at a hearing last summer over the Corinthian debacle and whether ACICS was asleep at the switch. WATCH:

In his Senate testimony, Gray said ACICS “found no evidence that [Corinthian] lied to their students or defrauded them.” Pressed as to whether ACICS had erred regarding Corinthian, Gray testified, “I’d be the first to admit that accreditors like any other organization make mistakes. This was not one of those mistakes.”

In advance of the upcoming June meeting of the U.S. Department of Education’s advisory committee on accreditation, a number of advocates for students have called on the Department to end its recognition of ACICS as an organization whose approval allows schools to receive federal student aid. Those sending letters asking the Department to dump ACICS include thirteen state attorneys general; Ben Miller of the Center for American Progress; nine veterans groups including

Student Veterans of America and Vietnam Veterans of America; and a coalition of 23 groups that advocate for students, consumers, and educators.

The letter by the coalition, which includes the American Association of State Colleges and Universities (AASCU), Consumers Union, National Consumer Law Center, the Service Employees International Union (SEIU), USPIRG, and VetJobs, concludes, “It seems impossible that ACICS could have conducted anything resembling a rigorous investigation of the allegations against Corinthian and come up with no problems.” The letter charges that “lax gatekeeping” by ACICS “has resulted in the worst student outcomes of any major accreditor—a trail of numbers that represents a massive toll of human devastation across the country. It has left low-income students burdened by debts they have no hope of repaying after being lied to and lured into programs of questionable quality through false promises and statistics.” (Disclosure: I participate in the coalition work that produced this letter and other advocacy on for-profit college issues.)

The attorneys general, in their letter, write, “Even in the crowded field of accrediting failures, ACICS deserves special opprobrium.” They note a recent investigation by ProPublica that found that just 35% of students at ACICS-accredited schools graduate, “the lowest rate for any accreditor.” Moreover, the AGs noted, “Of students who actually did graduate, more than one in five defaulted on their student loans within the first three years after graduation. A full 60% had not yet paid down a single dollar of the principal balance on their loans.”

ProPublica found that two-thirds of ACICS’ commissioners since 2010 were simultaneously executives at for-profit colleges. The ACICS board of directors and committees has included representatives of predatory schools including ITT and Corinthian, a fact that, the AGs write, raises “serious questions about potential conflicts of interests and therefore ACICS’s ability to impartially evaluate those and other schools.”

ACICS told ProPublica last week that the coalition letter contained “misleading allegations” and that it was preparing a “comprehensive response” to the various criticisms.

But given the terrible abuses of students by for-profit colleges that have occurred, it is clearly time, long past time, for the Department of Education to look critically at ACICS and the other national and regional accreditors of for-profit schools and to demand fundamental changes. The departure of one elder from this Potemkin Village changes nothing

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We looked at all Acics commissioners since 2010 and found that two-thirds of them have worked as executives at for-profit colleges while sitting on the council. A third of the commissioners came from institutions facing consumer-protection lawsuits, investigations by state attorneys general, or federal financial monitoring.

Consider Beth Wilson. Ms. Wilson, executive vice president of Corinthian Colleges, joined Acics in 2014, less than three months after Kamala D. Harris, the California attorney general, filed a lawsuit against Corinthian for deceptive advertising and falsifying job-placement numbers. Ms. Wilson was no stranger to accreditation, having previously been the chair of another accreditor of primarily for-profit colleges. And she was no stranger to Corinthian’s problems. According to the attorney general’s continuing suit, Ms. Wilson ordered employees to alter Corinthian’s job-placement statistics.

Ms. Wilson did not respond to requests for comment.

Having a majority of commissioners be industry executives violates no federal rules. The Department of Education requires only a small fraction of commissioners to be from outside the industry, and accrediting agencies for both nonprofit and for-profit colleges are largely composed of industry players.

However, some education experts argue that potential conflicts of interest in for-profit accreditation are especially troubling because of the heightened scrutiny of the industry.

Robert M. Shireman, a former deputy under secretary in the Department of Education and currently a senior fellow at the Century Foundation, calls the accreditation process "a giant cesspool of corruption. "http://chronicle.com/article/Whos-Regulating-Troubled/235498

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STATEMENT: Resignation of Albert Gray Cannot Fix Greater Problems at ACICS, Says CAP’s Ben Miller

April 18, 2016

Contact: Allison Preiss

Phone: 202.478.6331

Email: apreiss@americanprogress.org

Washington, D.C. — News broke today of the resignation of Albert Gray, executive director of the Accrediting Council for Independent Colleges and Schools, or ACICS. In September 2015, the Center for American Progress released a report that revealed troublingly high student loan default rates among colleges accredited by national accreditors, including ACICS—the largest accreditor for the now-defunct Corinthian Colleges. Ben Miller, the author of that report and the Senior Director of Postsecondary Education at the Center for American Progress, released the following statement:

The resignation of Albert Gray is a long-overdue admission by ACICS that it has failed to properly safeguard taxpayer dollars by protecting students from poor-performing institutions of higher education. The problems at ACICS, however, cannot be fixed by just one resignation. The failure of Corinthian Colleges—plus lawsuits and investigations at other institutions approved by ACICS—reflects a dereliction of duty by the entire board of directors to set and enforce rigorous standards, as well as exercise good judgment about which institutions to allow into the federal financial aid programs. ACICS has had years to improve and this move should in no way preclude the agency from losing its recognition when it comes before the U.S. Department of Education’s accreditation committee in June.

In its report on accreditation, CAP’s review of U.S. Department of Education data found that one out of every five borrowers at an ACICS-accredited college defaults on his or her loans within three years of entering repayment, a mark that is 50 percent higher than the national average. That figure—known as the three-year cohort default rate, or CDR—is particularly troubling because students at ACICS-accredited colleges take out student loans at higher rates and in greater amounts than those at colleges accredited by other agencies. Click here to read the report.

Furthermore, a public comment filed to the Department of Education by CAP on April 8 found that 17 institutions or companies accredited wholly or in part by ACICS had been subject to investigations or settlements without admission of wrongdoing by state and federal actors. Of these, nine were recognized by ACICS as “honor roll institutions” that exemplify the accreditation process.

For more information or to speak with an expert, contact Allison Preiss at apreiss@americanprogress.org or 2024.78.6331.

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