Weekly Market Update
DEVOS MOVES TO REDUCE REGULATORY OVERSIGHT
Thursday, January 10, 2019
Education Secretary Betsy DeVos released proposals to further deregulate higher education. The changes would grant accrediting agencies more leeway to approve programs that do not fit traditional academic models and encourage programs featuring online or competency-based education. New accrediting agencies would no longer have to demonstrate a minimum of two years of experience, and new academic programs would face fewer reviews. Further, schools offering online education would no longer face a 50% cap on their outsourcing of academic programs to unaccredited providers. In response, some higher education policy experts and student advocacy organizations said they view the recommendations as invitations to more inefficiency, fraud, and abuse.
In Other News
- Vanderbilt University Medical Center and GE Healthcare have announced a new partnership aimed at applying artificial intelligence to immunotherapy research for cancer patients. The five-year collaboration hopes to provide predictive analytics for new diagnostic tools and personalized immunotherapies.
- Chicago State University has agreed to pay $650,000 in damages and attorney's fees to professors Robert Bionaz and Phillip Beverly. The professors alleged that the university violated their free speech rights in repeatedly attempting to shut down their blog, CSU Faculty Voice, a forum that criticizes administrators.
- The Federal Reserve may only need to raise interest rates once in 2019, Atlanta Fed President Raphael Bostic said on Monday. Among the factors arguing against additional rate hikes is the potential economic effect of the U.S. government's current partial shutdown and lost wages for federal employees.
- Lambda School, a for-profit online coding boot camp based in San Francisco, announced that it has raised $30 million in a Series B funding round. Unlike its peers, Lambda allows students to pay for its 30-week software engineering courses with an increasingly popular arrangement known as an income share agreement, allowing students to pay a percentage of their post-graduation salary in lieu of tuition.