In a move toward creative innovation that I referenced yesterday regarding the Obama administration’s proposed rules, Kaplan CEO Andrew S. Rosen wrote and released a letter on September 8th proposing a “money-back guarantee” option for students.
Rosen suggested that having an introductory portion to Kaplan’s higher education classes with a refundable tuition option if a student is not fully satisfied with the program.
This would certainly incentive for-profit colleges to increase the quality and value-add of their programs if they know students can quit the program and get their tuition back risk-free.
Kaplan spokesperson, Mark Harrad added, “there’s no guarantee Kaplan would be permitted to make a risk-free guarantee to its students. The Education Department and state regulators would have to approve, as well as Kaplan’s accreditors (…) It’s a great idea and one we’re going to push for, but it’s not an operational reality yet.”
This is the type of innovation needed in the for-profit sector to move from looking for ways to deprive low-income students of federal funding to look toward ways to increase the education quality they receive.
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