Tag Archives: Title IV

Obama’s pal catches major break in for-profit college deal

O's Chicago friends - Martin Nesbitt, Valerie Jarrett, Dr. Eric Whitaker

Nesbitt (far left) with Obama and fellow pals.

The “ethical fog” has been a permanent fixture in Obama’s administration. Just two more weeks…

From NY Post: A close pal of President Obama will be able to buy the for-profit parent of the University of Phoenix after federal regulators cut him and other buyers a major break, The Post has learned.

Marty Nesbitt — a Chicago business mogul who is widely considered Obama’s best friend — has won a loosening of stiff capital requirements that had threatened to derail the $1.1 billion deal for him and his partners, according to public filings reviewed by The Post.

The lowered capital strictures, quietly eased by the Department of Education in an unusual regulatory move last month, effectively seal the pending agreement by Nesbitt’s private equity firm, Vistria Group, to buy University of Phoenix owner Apollo Education at a fire-sale price, critics charge.

“I think every way you look at this transaction is questionable and suspicious,” said Diane Jones, the former assistant secretary for post-secondary education at the Education Department under President George W. Bush. Jones said the DOE typically does not change terms after making a public recommendation.

Adding to the potential controversy surrounding the DoE’s rare move to lower capital requirements, former Deputy Education Secretary Tony Miller — formerly a tough regulator of for-profit schools — is now a partner at Vistria Group.

On Dec. 20, the DoE lowered to 10 percent of the school’s Title IV federal student-aid funding from 25 percent the capital Apollo had to keep in a letter of credit, according to public filings. The other 15 percent can be put in escrow. The higher capital requirements were handed down just two weeks before the cut.

The lightened restrictions will allow Nesbitt to avoid triggering a provision that would allow the school’s owner to walk away from the deal if the DoE requires a letter of credit greater than 10 percent, the documents show. “I do believe the restrictions were going to kill the deal,” Mark Schneider, a former education official under President George W. Bush, told The Post. “I think there is a cloud of ethical fog.”

The for-profit college’s value could soar under Nesbitt’s ownership, critics say, as President-elect Donald Trump is expected to lighten rules that govern such schools after years of tough regulation by Obama administration officials.

Rival DeVry Education’s shares have risen by more than a third since the election, recently trading above $31 a share.

Obama had been on a crusade against for-profit schools, cracking down on predatory practices and blasting some colleges for “making out like a bandit” while their debt-riddled students struggled to find good jobs. He didn’t name any schools specifically.

Other curbs imposed on the deal Dec. 7 have remained, such as barring Apollo from adding any new programs or locations and capping enrollment at current levels. “The final terms, developed by legal and financial aid professionals, were not loosened,” a DoE spokeswoman insisted to The Post.

A Vistria spokeswoman said, “No one at Vistria has contacted the White House to advocate for an outcome of this transaction.”

Apollo Education declined comment beyond saying the deal was expected to close by February 1.

DCG

Obama DOJ Won’t Protect You From Bullying If You’re White

It’s now official policy. In Obama’s America, victims of crime and abuse now are color-coded. 

It began with the head of the Department of Justice (DOJ) Attorney General Eric Holder declaring that the New Black Panthers (NBP) who intimidated voters at a Philadelphia voting station in 2008 won’t be prosecuted because they’re “my people” — i.e., because they are black. Led by their leader King Samir Shabazz, members of the NBP in Philadelphia intimidated voters by standing before a voting place in the city, dressed in their uniform of black beret, black jacket, black pants, and black boots and carrying clubs in their hands. Shabazz also was captured on video saying he hates all white people, “every single one of them,” and calling for the killing of all white babies.

Then Holder implied that whites simply haven’t suffered enough to be considered victims of racism when he defended his refusal to prosecute the NBP, saying:

“Think about that. When you compare what people endured in the South in the [19]60s to try to get the right to vote for African Americans, to compare what people subjected to that with what happened in Philadelphia, which was inappropriate…to describe it in those terms I think does a great disservice to people who put their lives on the line for my people.”

Now, the DOJ is further making it clear that the Obama administration will not protect white school kids from bullying. As part of Obama’s anti-bullying campaign, the DOJ states on its website that children will be protected from bullying and harassment in schools. However, the DOJ also states that it will enforce this policy in accordance with the Equal Protection Clause, Title IV of the Civil Rights Act of 1964. Since whites and males are not considered victim groups under Title IV, this effectively excludes whites, especially white males, from the DOJ’s protection against school bullies!

Kerry Picket reports for The Washington Times on March 18, 2011:

[T]he Obama administration has made school bullying a federal issue. Last week, President Barack Obama addressed an anti-bullying conference with First Lady Michelle Obama at his side. The administration’s anti-bullying campaign has been ongoing since the beginning of Mr. Obama’s term.  The Department of Justice announced in December 2010 its intention to hold liable school districts that fail to protect students that are bullied.

DOJ’s website states: 

“The Civil Rights Division and the entire Justice Department are committed to ending bullying and harassment in schools, and the video highlights the Department’s authority to enforce federal laws that protect students from discrimination and harassment at school because of their race, national origin, disability, religion, and sex, including harassment based on nonconformity with gender stereotypes.”

The statement later says:

“The enforcement of the Equal Protection Clause, Title IV of the Civil Rights Act of 1964, and Title IX of the Education Amendments of 1972 in school districts is a top priority of the Justice Department’s Civil Rights Division. Additional information is available at the Civil Rights Division’s Educational Opportunities Section website at http://www.justice.gov/crt/edo/.”

Here is the catch. DOJ will only investigate bullying cases if the victim is considered protected under the 1964 Civil Rights legislation. In essence, only discrimination against a victim’s race, sex, national origin, disability, or religion will be considered by DOJ. The overweight straight white male who is verbally and/or physically harassed because of his size can consider himself invisible to the Justice Department.

Apparently, the Justice Department is going by George Orwell’s famous Animal Farm ending: “All animals are equal, but some are more equal than others.”

“We can only take action where we have legal authority,” wrote DOJ spokeswoman Xochitl Hinojosa in a December 2010 e-mail to The Washington Times Water Cooler. She continues: “As stated in the website below, we are statutorily authorized to initiate suits under Title IV of the Civil Rights Act of 1964, the Equal Educational Opportunities Act of 1974, and under Title III of the American with Disabilities Act. More information on the Civil Rights Act, Equal Educational Opportunities Act, and the ADA can be found here: http://www.justice.gov/crt/edo/faq.php#3.”

So the message from Obama’s DOJ to all people-of-color schoolyard bullies is this:

Go for the whiteys!

And if you’re white and you find yourself being discriminated against, abused or bullied, and you look to Obama’s DOJ for protection or you seek justice from Obama America’s courts — Good Luck!

~Eowyn