Tag Archives: profit

Suit seeks brand-new recourse on for-profit college scams

Sunday, Nov. 12, 2017|3:40 p.m.

WASHINGTON– Two females who declare they were defrauded by a for-profit college have actually sued the Education Department and a private loan servicer in a case their lawyers say might supply a new legal solution for tens of countless students frustrated with the department’s inactiveness on claims looking for loan forgiveness.

The claim, filed Sunday in federal court in New York, comes as the department starts work this week rewriting Obama administration rules developed to improve securities for trainees defrauded by their schools.

Tina Carr and Yvette Colon had actually participated in Sanford-Brown Institute, a for-profit college in New York, and are looking for to have their trainee loans removed. Their lawsuit points out federal and state law that prohibits fraud along with the contract they signed with their school. Previous suits conjured up the department’s own policies in their search for loan relief.

Lawyers for the 2 students state the brand-new approach is necessary because Education Secretary Betsy DeVos has stalled factor to consider of tens of countless similar claims from customers.

Colon finished the school’s certificate program to work as a cardiac sonographer, only to discover that her qualifications were invalid and that she couldn’t move her credits to other schools, as had been promised, according to the fit. Colon is requesting for the cancellation of her four federal and two private loans amounting to $21,000.

Carr trained to be a medical assistant. She states the school lied to her about job positioning support and the ability to move credits. Carr has actually defaulted on her $14,500 federal loans and desires the loan forgiven.

“People’s rights not to spend for faulty items is well established in law, so whatever the Department of Education is or is not doing, the legal rights of debtors continue to exist and are enforceable versus the federal government simply as they protest personal celebrations,” stated Toby Merill, a litigator at Harvard University’s Project on Predatory Trainee Lending, which represents defrauded trainees.

“Yvette and Tina should have to be able to move on with their lives, and since it’s clear that the department does not have any intention for doing anything for cheated students, it’s necessary to bypass them and go straight to the court for their reasonable hearing,” she included.

Abby Shafroth, a lawyer at the National Consumer Law Center, said customers are turning to the courts due to the fact that absolutely nothing else is working.

“They have actually come to this method since all other opportunities have failed,” Shafroth said. “At a particular point there has to be another way, the department can not state ‘You have to utilize our process and not offer a process.”

The Department of Education did not respond to an ask for remark.

Navient, the loan servicer called in the fit, said it doesn’t have the authority to decide the fate of trainee loans.

“As mandated by federal requirements, all applications for defense to payment are sent to the United States Department of Education for processing, and, upon federal government instructions, servicers suspend payment while the Department of Education makes a discharge eligibility decision,” the company stated.

Career Education Corporation, which runs Sanford-Brown Institute, did not respond to a request for comment. In 2013, the school reached a $10 million settlement after an investigation by New york city Attorney General discovered that the school regularly misrepresented its job positioning results in trainees. It has ever since shut down all of its brick-and-mortar campuses, however still runs online.

Profession Education Colleges and Universities, the for-profit industry lobbying group, also did not return an ask for remark.

Work on student loan relief has mostly stalled since DeVos presumed office. She has halted 2 Obama-era efforts that required more defenses for students and has built up a backlog of some 87,000 loan cancellation claims, according to a report published today. The Associated Press reported last month that DeVos is thinking about abandoning the Obama administration practice of totally erasing trainee loans and granting defrauded trainees only partial relief.

Critics state the Trump administration is watching out for its good friends in the for-profit market and putting their interests ahead of students’. DeVos has employed Robert Eitel, who worked as a leading legal representative for Profession Education Corporation, an umbrella company for SBI, as her senior therapist. She likewise designated a former dean at DeVry University to serve as head of the department’s enforcement unit. On the other hand, earlier this year, President Donald Trump paid $25 million to settle charges his Trump University deceived customers.

DeVos says she is intent on safeguarding trainees’ rights, however says the Obama policies were too lax and could allow for some candidates to abuse the system.

However Carr, 60, the medical assistant hopeful, strongly disagrees, stating the loans should be forgiven.

“They made a lot of pledges and they provided nothing, I have absolutely nothing to reveal for it,” says Carr, who now struggles to make a living as a sales associate in a department store. “We need remedy for this, I am stuck in limbo.”

Run your not-for-profit with a tactical business method

[not able to obtain full-text content] To supply a valuable service, nonprofits should follow sustainable operating practices to maintain the manpower, products, centers and all else required to attain their objectives. The crucial to accomplishing this is to run with the tactical method of a for-profit organisation.

Reconnaissance Wrap-up: Shopping mall Owners Shift Focus to Profit from Recaptured Shop Spaces

Contrary to Bleak Headings, Las Vegas Convention Retail Trade Conference Attendees See Chance in Shifting Retail Landscape

About 37,000 merchants, retail brokers, financiers and other retail experts gathered in Las Vegas today for Reconnaissance, the industry’s biggest trade convention, amidst a concrete sense of aggravation– not a lot about the retail realty company, which stays evenly excellent, however rather over the bleak headlines and negative narrative concerning store closures and retailer bankruptcies that have actually dominated recent headlines.

Guests adopted a protective stance with a hint of defiance about what many described to CoStar as overblown sense of negativity by news outlets and market analysts in reporting and dissecting the woes of retailers such as Sears, JCPenney, Macy’s and a series of apparel chains and others that have actually revealed closures.

Throughout the sessions, brokers, proprietors and sellers ridiculed headlines pronouncing a “retail Armageddon” and the death of brick-and-mortar stores.


Brokers, owners and sellers loaded the Leasing Shopping center at Reconnaissance 2017 in Las Vegas today.”Contrary to a lot media coverage, the world is not concerning an end by any methods, for either physical retail or online retail. Just the opposite,” stated Ben Conwell, senior handling director with Cushman & & Wakefield.”Disruptive, yes, but great opportunities remain. We’re very, very bullish on the effective combination of the retail world with supply chain network.”

By the 3rd day, nevertheless, the narrative at the yearly celebration of international consumerism had actually moved to hammering out deals and sharing leasing and sales strategies in the changing enviornment. Conference goers worked their phones and loaded the Las Vegas Convention Center flooring checking prospective offers.

Panel discussions concentrated on repurposing malls and shopping mall with the latest food, beverage and home entertainment concepts, redeveloping aging Class B properties and rooting out the “surprise cash traps” in burdensome co-tenancy clauses and other leases terms.

“Everyone wants to find out exactly what the next hot food and home entertainment idea is going to be– what’s the next Topgolf, what they can do to get a piece of the action before the market becomes too saturated,” said Cushman & & Wakefield Vice President Garrick Brown. “The next decade is going to be all about mixed-use and redevelopment, developing a city feel in a suburban area.”

Hessam Nadji, president and CEO of Marcus & & Millichap, stated the repeating concern he is asked by customers is, “How do we turn the existing characteristics and unfavorable headings into chance?”

Westfield and other major shopping center gamers have actually mainly weeded out B and C residential or commercial properties and are focused on structure ‘fortress’ financial investments in their finest assets and areas, Nadji said throughout the investment brokerage’s annual Retail Trends conference at the Renaissance Hotel.

The world’s biggest shopping mall owner, Simon Property Group, (NYSE: SPG), this week revealed strategies to invest another $1 billion in redeveloping its homes. Over the previous 5 years, Simon stated it has invested more than $5 billion to update and broaden its homes, adding dining establishment and entertainment area and redeveloping previous outlet store sites to keep up with the altering choices of its customers.

Nadji stated shopping mall owners and investors need to think of how finest to reposition their residential or commercial properties based on specific consumer requires in their trade areas, including healthcare, dining establishments and tenants such as home improvement stores linked to the recovering single-family real estate market.

“It has to do with recycling the realty. It’s not about the retail,” Nadji said.

Alexander Goldfarb, REIT expert with Sandler O’Neill + Partners, stated this year’s Reconnaissance seemed like “a mission for the down-to-earth reality about the state of physical retail.”

“While the management teams seemed more sincere about the extent of the pressures on the industry, the message was the very same as in current profits calls– demand for quality areas endures, and now needs some additional sweat to accomplish,” Goldfarb stated.

Regardless of concerns over the possibility of extra outlet store closures and liquidations, leasing spreads for recaptured area seem staying intact. And while bigger sellers may be throttling back growth plans, new principles and small-shop occupants seem to be expanding, Goldfarb stated.

Richard W. Chichester, president and CEO of Faris Lee Investments, invests a great deal of his time listening to and recommending retail proprietors about the chances and challenges of rearranging underperforming shopping centers.

“The repurposing of retail is something individuals have actually discussed for several years, but most have not seen it yet,” Chichester said. “At no time in our professions have actually basics been more crucial. The most important thing is the quality of the realty– not the tenants. If it’s strong real estate and there’s an excellent business strategy, it’s defensible.”

Retail is the most complex and sophisticated of the significant commercial home types, with a smaller sized swimming pool of more extremely competent players in the market today dealing with locational, layout and co-tenancy concerns that merely do not exist in workplace, multifamily or industrial possessions, Chichester asserts.

“Retail is constantly fluid, transferring to the expectations of the customer. Amazon is now among the largest landlords in the nation, through a big traditional e-commerce presence,” Chichester said. “With its warehouse type stores, Wal-Mart was among the earliest examples of omni-channeling. When you take a tube of tooth paste off the rack, their system currently understands and is currently sending out the order to replenish their inventory.”

“Wal-Mart and Amazon are going to fulfill in the middle in a big collision,” Chichester stated in closing.

New Student Help Regulations May Put 1,400 For-Profit Colleges at Risk of Failure

Dept. of Education Increases Accountability for Low-Performing For-Profit Institutions

New U.S. Dept. of Education policies that take effect today are putting about 1,400 college programs at threat of losing eligibility for receiving federal student financial aid. The brand-new guidelines could accelerate the continuous closures of for-profit colleges across the country.

The for-profit education company has actually been under fire for several years as investigations covering a broad range of their business practices have actually been launched by government attorneys generals, academic accreditation institutions and securities regulatory authorities.

New “gainful employment policies” taking effect today are intended to strengthen the Dept. of Education’s oversight of particular profession training programs.

To qualify for federal student aid, the law requires that a lot of for-profit programs and certificate programs at private non-profit and public institutions prepare students for “gainful employment in a recognized profession.”

Under the new regulations, a program would be considered to result in gainful employment if the approximated yearly loan payment of a typical graduate does not surpass 20 % of his/her discretionary earnings– the amount left after standard needs like food and housing have actually been subtracted– or 8 % of his or her overall earnings.

Programs that surpass these discretionary earnings levels would be at threat of losing their capability to participate in taxpayer-funded federal student aid programs.

The policies are developed to compare programs that supply economical training that results in well-paying tasks from programs that leave students with bad revenues prospects and high quantities of debt.

They also are meant to support higher accountability for colleges by requiring organizations to provide crucial info on program costs, whether students graduate, just how much they make, and how much debt they may accumulate.

In addition, as part of the Education Department’s efforts for shared duty in holding colleges liable, states now should fulfill minimum requirements in approving organizations that run in their state and ensure students have a system through which they can submit grievances.

Based on offered information, the Dept. of Education estimates that about 1,400 programs serving 840,000 students– which 99 % go to for-profit institutions– would not pass the brand-new accountability requirements.

All programs will have the opportunity to make immediate modifications that could help them prevent sanctions, however if programs do not make these changes, they will eventually end up being ineligible for federal student help, which frequently makes up almost 90 % of the income at for-profit organizations.

“The clock is ticking for bad actors in the profession college industry to do right by students,” said U.S. Secretary of Education Arne Duncan in a statement announcing the brand-new requirements. “We understand numerous have actually taken steps to enhance or to close programs that underperform, however our company believe there is more work to be done throughout the board so students get what they pay for: strong prep work for a great job.”

This past spring, 2 of the largest operators of for-profit colleges announced plans to shutter 42 locations, representing a combined total of 1.05 million to 1.26 million square feet of space.

Santa Ana, CA-based Corinthian Colleges Inc. called it gives up completely, and DeVry Education Group, operator of DeVry University, revealed the next phase of its restructuring, that includes 14 school closures.

The closures consist of Corinthian’s 13 remaining Everest and WyoTech campuses in California, Everest College Phoenix and Everest Online Tempe in Arizona, the Everest Institute in New York, and 150-year-old Heald College, which has 10 areas in California, one in Hawaii and one in Oregon.

In previous expense realignments in the in 2013, DeVry management has actually closed 15 school places and completed 13 school size reductions.

A number of for-profit institutions started starting restructuring activities as far back as year 2011, and many remain to re-engineer and restructure their business activities

NV Energy fights to keep roof solar from cutting into its profit

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Thanks to Change

Las Vegas-based information center Change will need to pay $27 million to leave the energy grid and produce its own power, the general public Utilities Commission has ruled.

Monday, Might 25, 2015|2 a.m.

. The future of solar power in Nevada is at stake in a furious battle that likely won’t be dealt with as the 2015 state legislative session nears an end next month.

Solar advocates, Nevada businesses and solar market reps are pushing for more rooftop solar, stating it’s unfair to force customers to remain chained to the grid and caution that the state could lose thousands of jobs if it does not adjust. State energy NV Energy declares more home solar means increased rates for traditional consumers who can’t or will not set up solar panels on their residences or companies.

It boils down to money for both sides

It’s everything about dollars for both the solar industry and NV Energy.

The utility states ratepayers will certainly be charged an added $8 million for every single portion point the net metering cap increases.

Roof solar consumers receive a credit worth about 7 cents per kilowatt-hour for powering their houses and the grid with solar electrical power. That credit is an incentive to go solar, but it’s also a method for eating less power from NV Energy, biting into the company’s earnings.

The solar market says a tariff and locked-in cap rate will certainly kill most of the 6,000 jobs the industry gave Nevada over the previous 5 years and will limit consumer choice.

Early in the legislative session, NV Energy unloaded a team of lobbyists to squelch any effort to raise the cap. Solar followed with its own lobbying effort, congregating with a consortium of video gaming and tech interests. The fight warmed up after a costs draft to raise the cap to 10 percent died without a single public hearing or vote.

Solar supporters met legislators and the governor– whose outdoors advisors lobby for NV Energy– however had little success. Now, as time winds down in the session, only one option is on the table– a punt.

Republican Sen. Patricia Farley’s amendment to a building codes expense would allow the general public Utilities Commission to raise the solar cap and to impose up to three tariffs on net metering consumers. The eleventh-hour step was the only method to save the solar industry this session, Farley stated.

“It gave the solar industry a car to begin a discussion,” Farley stated.

The change cleared the Senate and is moving through the Assembly.

The compromise is not perfect for business such as SolarCity and Sunrun, which rent photovoltaic panels to consumers who take part in net metering. Market officials say proposed fees might injure business by dissuading people from taking part in a net metering program. Roof consumers– who pay bills to both the energy and solar business– pay about 20 percent less for solar than traditional energy, and the fees, industry leaders state, might bite into their expense savings.

Adding costs and limiting the cap would be a big win for Berkshire Hathaway Energy and among its few net metering successes nationally. Berkshire failed to impose caps in Utah and Washington. Arizona set up a $5 to $7 net metering charge for homeowners. A fee is pending in Wisconsin. Colorado has no cap and no charges.

Simply puts, energy business in more than 40 states have unsuccessfully fought to remove net metering or enforce charges.

Much of the battle focuses on Nevada’s cap on net metering, an arrangement by which individuals with rooftop solar can sell extra power they generate back to the grid. Nevada is most likely to strike its restriction as early as this summertime, solar advocates state, which will make it less useful for house owners to tap the huge solar energy potential of Southern Nevada.

The Legislature appears to have actually sided with NV Energy. On May 17, it passed a solar bill that failed to raise the cap however gave Nevada’s governing Public Utilities Commission the capability to impose new charges on net metering clients who come online after the cap is hit. The new charges appear meant to secure NV Energy’s income from what the business has actually defined as an unfair subsidy at the expense of nonsolar ratepayers.

While NV Energy, possessed by Warren Buffett’s Berkshire Hathaway, battles to keep the cap in location, it’s likewise fighting on another front. A consortium of casinos and businesses is wanting to leave NV Energy’s grid and start creating their own power, saying they’re being put at a competitive drawback since they’re paying more for energy than their business rivals in neighboring states. The state Public Utilities Commission has stated it would charge substantial fees– $27 million in the case of Las Vegas information center Change– to let industrial ratepayers leave the system.

Meanwhile, the utility is dealing with another threat through technological advances. Tesla’s Powerwall unit, a relatively cheap storage battery that can charge up on solar power, can assist company operators and homeowners lower their reliance on the grid– or, for the really wealthy, leave it altogether.

How the controlled monopoly became

In exchange for developing power plants, power lines, distribution networks and keeping electrical systems, Nevada, like lots of states, offers public energies a certified rate of return. Right here, that rate has to do with 8 percent, authorized by the Nevada Public Utilities Commission. NV Energy’s net income in 2014 had to do with $354 million, according to Berkshire Hathaway Energy’s SEC filings.

NV Energy did not respond to a demand for comment on this story.

Offering an energy a managed monopoly over creating and providing power is a compromise. The energy gets a guaranteed earnings and in return admits to everyone who requires it and ensures capacity for all users. It’s the commission that holds the energies to the bargain, stated Stephen Brown, director of the Center for Business and Economic Research at UNLV.

“The utility doesn’t have an incentive to run in the community interest,” Brown stated. “That does not imply they don’t, however that’s not their financial incentive. We’re counting on the energy commission to make sure that the utility operates in the public interest.”

More rooftop solar production implies more competitors for NV Energy.

The way competition interferes with the energy industry parallels the shift in the telecommunications industry, stated Steven Weissman, director of the energy program at UC Berkeley’s Center for Law, Energy and the Environment.

“It started with one monopoly energy and a black rotary dial phone in everybody’s house,” stated Weissman, describing AT&T and its monopoly on the united state telephone system till its breakup in 1984.

By 1996, Weissman stated, Congress required companies to provide competitors access to facilities. And the emergence of mobile phone technology made the fight over access to landline facilities outdated.

“Now you have an entire generation of individuals who decide not to obtain a landline,” Weissman stated. “If the phone companies had the ability to gain anything by resisting opening their networks to competitive carriers, it was something of only limited duration. They didn’t develop something that maintained their business design long-lasting.”

The way AT&T and its descendents adapted to the loss of their monopoly was to spread into the broadband and mobile sectors, however big electrical energies have actually been comparatively slow to adapt to competitors from new methods of producing power.

“Exactly what utilities are doing is naturally searching for methods to take this pesky new technology and bat it away,” Weissman said.

Some companies wish to produce their own power, but stopping the grid comes at a cost

A group of Nevada companies wishes to break from NV Energy and stop paying the energy for energy. Rather, the business want to start producing and buying their own power and quit the grid.

The group calls itself the Nevada Coalition to Safeguard Ratepayers and includes Las Vegas Sands and Wynn Resorts, solar companies SolarCity and Sunrun, and Change.

The energies commission ruled this month that Switch would have to pay $27 million to leave the grid. Switch has actually asserted it must pay about $18 million.

Borenstein stated exit charges weren’t unjustified.

“I’m sympathetic to the general public Utilities Commission’s view,” Borenstein said. “I would be suspicious of numbers energies put out, however I do not think it needs to be totally free for customers to simply stroll away … (They) built the grid to support consumers, and there’s all these sunk costs. There might be stranded assets for which costs have to be recovered. When you leave, you need to bear a few of those costs.”

Yet the mix of limits on net metering programs and high exit charges appears to leave business squeezed in the middle. Switch has stated its energy costs in Nevada are 30 percent greater than competitors’ in nearby states.

Some energy business elsewhere are adapting to new innovation and needs for clean energy and more distributed generation. In California, public utility Southern California Edison is checking how to integrate Tesla Powerwall users, both property and commercial, with its grid. The energy is performing trial run with a small number of Powerwall users to see if the batteries can, in aggregate, be helpful to Edison’s grid requirements.

“The idea would be: How could a residential storage unit be utilized to aid the grid?” said Kevin Payne, the energy’s senior vice president for client service. “We might take power (from battery systems) when necessary or infuse power when it would be handy to do that.”

Payne said the ability to control a consumer’s energy requirements or manage the method consumers pump power back into the grid might be a considerable resource for the utility if battery storage users enhance.

In contrast to NV Energy’s resistance to dispersed generation, Payne stated Southern California Edison is adjusting its vision for its power grid to integrate new technological advances its consumers might use.

“The grid of the future is going to have to be upgraded and updated,” Payne stated. “Today … power flows from the top to the bottom. Going forward, the grid is going to have various attributes: generation, solar or other, batteries, need response. It’s going to need upgrades to the grid to see exactly what’s occurring and handle the two-way flow of power.”

Arguments for and versus legislative changes to solar

Some state an increase in rooftop solar production would trigger the traditional grid to collapse, others state solar would help fulfill power requirements and assist the state reach alternative energy mandates.

Senate Costs 374, passed May 17, specifies that when the net metering cap is struck, new net metering consumers will have to pay an additional tariff, to be figured out by the Nevada Public Utilities Commission. That indicates anyone who installs a solar system on a roof after the cap is struck will pay greater rates to use and offer solar energy than net metering consumers do now, though how much greater stays uncertain.

An expense recommended this year to raise the cap from 3 percent to 10 percent never passed. State Sen. Patricia Farley discussed a change to SB374 that would pass authority over the cap to the energies commission, however the amendment wasn’t consisted of in the last version of the bill.

Solar market representatives say the cap must be raised to enable consumer choice and more industry jobs.

“(People’s) consumer choices are driving the growth of a home-grown industry,” stated Will Craven, a spokesperson for SolarCity, a solar energy system service provider and installer. “Roof solar tasks by meaning have to happen in-state.”

Numerous solar supporters point to a study commissioned by the Nevada Public Utilities Commission as showing net metering benefits all customers– those who create energy and conventional clients.

Exactly what the state’s research, launched in 2013, actually said was that it’s most likely a wash. Net metering probably will not ultimately cost non-participants more. Distributed generation might be more expensive than developing huge utility-scale solar plants, but Nevada is required to source 25 percent of its power from sustainable sources by 2025, and power from net metering customers might balance out the expense of purchasing renewable power or building more renewable energy plants.

Numerous professionals question whether distributed generation is the most cost-effective route for the state to invest in clean energy. Severin Borenstein, a University of California, Berkeley economist who concentrates on energy policy and energy markets, stated neither solar market advocates nor the general public utility are being sincere about genuine expenses.

With dispersed generation, Borenstein stated, “You lose the economies of scale. And the economies of scale are really huge. The economics general pretty clearly prefer grid-scale generation, both wind and solar.”

Borenstein said the way net metering is structured is certainly a subsidy.

“You’re generally giving them (net metering consumers) retail price credit for putting power into the grid,” Borenstein stated. “If (the credit for power) were at wholesale rates, it wouldn’t be a subsidy.”

Appropriate rate design– crafting charges to reflect the true expenses and benefits of individual solar power generation– is essential to fairness, Borenstein said.

“Utilities state if you keep installing solar, the grid’s going to collapse and we’re going to go out of business,” Borenstein stated. “There really isn’t much possibility of that, and we should be a having a discussion about that, whether that’s the very best way to put in renewables. Instead, you get political leaders who are either increasing utilities or playing to the residential photovoltaic advocates with all this totally free customer option stuff. It’s not real consumer option if you can just draw on the grid and the rates don’t reflect the cost.”

But in the battle in between the utility and solar industry supporters, experts say, a real public conversation of the costs of distributed generation versus utility-scale clean power from solar and wind plants is being lost.

Exactly what is net metering?

The solar power policy battle in Nevada revolves around a net metering cap, a restriction on the quantity of solar energy that can be bought back from people or institutions with renewable resource systems.

If a house or business creates more power from the sun than it utilizes in a month, NV Energy will certainly purchase the additional at retail power rates and offer the consumer a credit, the internet of their power usage and power production. That implies a house owner with solar panels may be able to run his/her house mostly on solar power throughout the day and resell what he or she does not use to the grid, seeing genuine reductions in energy expenses.

But there’s a restriction on the amount of net metering the state enables, and solar advocates and solar market business say Nevada will strike the existing cap this year, perhaps as early as late summer season. The cap is set at 3 percent of the utility’s peak capacity, or 225 megawatts.