Economy Watch Live Updates on the Financial Crisis | MORE » | Business Home »

Page 2 of 2   <      

New Owners Fail To Improve Chain Of Career Schools

Discussion Policy
Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.

Since its purchase, the new owners have invested millions of dollars in the schools, said Hillard of High-Tech Institute. They also changed the names of the two least worst-performing branches in Chicago and Arlington, to Banner Institute and Banner College, in an attempt to disassociate the schools from their past problems.

But troubles continued.

The Chicago campus lost its accreditation. The Accrediting Council For Continuing Education and Training faulted the school for its high staff turnover, its dismal completion and placement rates, and for not having written proof of the staff's ongoing education.

The Chicago school enrolled students who did not have "required prerequisite courses," ACCET said in a letter revoking the school's accreditation. Instructors routinely "adjusted [test] scoring by deleting those questions relating to material not covered. Most of the students in the class had an 'A,' " ACCET said.

Meanwhile, in New Jersey, Michael Corsner, a former student at the school's Parsippany branch, filed suit with two other students claiming the school misrepresented job-placement figures.

It has settled at least three similar class-action lawsuits in New Jersey and Pennsylvania, with an additional pending lawsuit.

"The materials and teaching was inadequate," Corsner said. "It was impossible to get an education there."

The company denies the claims.

Arlington's Banner College, which currently has 220 students, will close its doors next year because of financial troubles.

In a large metropolitan areas like Washington, it's difficult to compete with the larger, more established career schools such as Strayer University, Lefkowitz said. "It's very easy to be successful in this sector, but there are challenges, like tremendous competition."

Banner College in Arlington graduated less than 49 percent of its students, according to the Department of Education. The company said the school placed 46 percent of its students in jobs.

Banner College's accreditation is being deferred because the school has not provided adequate information to ACCET, said Charlie Matterson, associate director for the agency.

At the Arlington branch, students complained of mismanagement, a lack of fundamental teaching supplies, and an unresponsive administration.

"When we first got there, things were fine," said Joelle Paige, a student in the surgical technicians program at the Arlington branch. "But then everything started going downhill. In late March, we didn't have the correct instruments or gowns. Nothing."

Although the school has assured students that it will not close its doors before all the students graduate, some are skeptical.

Franklin Caulker, a manager at a Wendy's restaurant, took out $16,000 in student loans to help pay his $21,500 tuition. He hoped the surgical technician's program would lead to a new career.

"I wanted to work in the OR," or operating room, he said. "I thought I'd do something with my life."


<       2


More in Business

Time Space Economy

Time Space Economy

Explore economy news through text and photos from around the world.

WashBiz Blog

Local Companies

Post editors and writers keep you informed about the region's business community.

Economy Watch

Economy Watch

Stay updated with the latest breaking news about the financial crisis.

© 2007 The Washington Post Company