Local vocational schools flagged for failing federal benchmarks
Nine Western Pennsylvania for-profit colleges failed a new federal test aimed at measuring whether their vocational programs' typical graduates make enough money to handle paying off student debt.
Pittsburgh Technical College in Oakdale and Douglas Education Center in Monessen are among local institutions that told the Tribune-Review they are appealing their “failing” ratings — a regulatory demerit that could prevent the institutions' program from offering future students financial aid.
The U.S. Department of Education this week released a list of more than 800 programs nationwide that did not meet debt-to-earnings benchmarks set by its so-called “gainful employment” rule.
“When a student invests time, money to attend college, they need to be confident that it is a sound investment in their future — not a liability that will further defer their dreams,” U.S. Secretary of Education Dr. John B. King Jr. told reporters Monday on a conference call.
“By making these debt-to-earnings rates public, we're empowering students and their families with information they can use to make better decisions. And we're giving career colleges an opportunity, and in some cases a warning, to improve the quality of their programs.”
Under the new rule, academic programs failed to pass if recent graduates' annual debt payments exceeded 12 percent of their total earnings or 30 percent of their discretionary income.
Pittsburgh Technical College criticized the data used to calculate the ratings as “incomplete and misleading.” Its hotel administration and computer graphics programs were flagged as failing, with median incomes for each cited at under $21,000.
“We know, based on the input from the companies who hire our graduates and the guidance of the 340 industry professionals who comprise our program advisory boards, that our curriculum delivers the skills and knowledge that employers need,” PTC spokeswoman Linda Allan said in a statement.
“While PTC is disappointed with government regulations that discriminate against career fields that traditionally offer lower income at the beginning of the career cycle,” Allan continued, “PTC will make whatever changes are necessary to ensure complete compliance with all (Department of Education) regulations.”
Amanda Phillips, executive director of financial aid at Douglas Education Center, said her institution has been collecting its own self-reported data from recent graduates as part of its appeal. The department flagged Douglas' associate degree program in cinematography and film/video production, pegging its graduates' median annual salary at under $7,000.
“Based on our data collection, we're confident that we will be successful in our appeal,” Phillips said.
Programs will lose federal financial aid eligibility only if they remain on the failing list for two out of three consecutive years.
Among other local institutions with programs deemed “failing” in the first year of the rule: Fortis Institute in Erie (11 programs cited); Art Institute of Pittsburgh (10 programs); Triangle Tech; Brightwood Career Institute; Penn Commercial Business/Technical School in Washington County; and Laurel Technical Institute in Mercer County. Two programs also were listed as failing at the now-defunct Everest Institute's Pittsburgh campus.
Officials from those institutions could not be immediately reached for comment or did not return requests for comment.
More than 800 programs in the United States failed the standards. Another 1,239 programs received a “zone” rating, signaling their rates bordered on failing.
Natasha Lindstrom is a Tribune-Review staff writer. Reach her at 412-380-8514 or nlindstrom@tribweb.com.
