[Congressional Record Volume 161, Number 159 (Wednesday, October 28, 2015)]
[Senate]
[Pages S7571-S7574]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
UNIVERSITY OF PHOENIX
Mr. McCAIN. Mr. President, I come to the floor for a very unusual
reason this afternoon. It has to do with an attack on for-profit
colleges by a longstanding campaign by certain groups and individuals
who have been opposed to for-profit colleges. They were able to destroy
one out in California, and they are continuing to attempt to make those
attacks work on other for-profit colleges.
This is a very unusual situation because what we are seeing take
place are conclusions being drawn and action being taken--in this case
by the Department of Defense--without due process, as a result of
pressure exerted by a Member and Members of the Senate, which then has
resulted in action without due process.
Last week there was a very interesting editorial in the Wall Street
Journal entitled ``Obama's For-Profit Stealth Attack. The Pentagon
punishes Phoenix on orders from Senate headquarters.''
Earlier this month the Defense Department cut off military
tuition assistance to new students at the for-profit
University of Phoenix, which enrolls about 9,300
servicemembers at its 105 campuses nationwide.
Defense's reasons for discharging Phoenix are vague: A
review ``in response to allegations published by the Center
for Investigative Reporting'' in a June drive-by on the
college found minor breaches in decorum.
Let me emphasize that. I say to my colleagues, there was a story
written by an outfit called the Center for Investigative Reporting--I
don't know anything about them, and I am sure the Department of Defense
does not. But as a result of an investigation by an outfit that none
have ever heard of, then action was taken by the Department of Defense.
It was not a Department investigation. There was no scrutiny. This is a
remarkable case of the Senate exerting influence in a way which is, I
think, almost unprecedented.
To wit, Phoenix had distributed unauthorized ``challenge
coins,'' which commonly denote tokens of recognition, with
military insignia. Yet many non-military outfits including
the University of Miami, Boeing and Intel--
And I would point out Southern Illinois University--
hand out such coins.
It is not an uncommon practice to hand out coins.
Phoenix's real offense, according to the Center for
Investigative Reporting--
Remember, this has nothing to do with the Government of the United
States--
is using the coin to ``imply military support'' for the
college.
My friends, at least 100 institutions in America give out challenge
coins. I wonder if those institutions have committed grievous crime in
the view of the CIR.
Defense also censured Phoenix for failing to obtain
approvals from the ``responsible education advisor'' to
sponsor events on military bases.
First, it is good to sponsor military events on military bases. Lots
of organizations, lots of companies, lots of corporations sponsor
events on military bases. In this case, although the responsible
education advisor was not consulted, the commanding officer of the base
was consulted and gave his approval.
Yet as the CIR article showed, military officials have
welcomed the university onto their bases.
They welcomed them because they were honoring those who serve--
remarkable.
Phoenix didn't navigate all the correct bureaucratic
channels.
In any case, as Defense acknowledges, ``the University of
Phoenix has responded to these infractions with appropriate
corrective action at this time.''
So as minor as these offenses may have been and technical in nature,
they have taken the corrective action, but still a Senator wants them
punished.
But political general Dick Durbin, the Illinois Democrat
who is leading the charge against for-profits in the Senate,
nonetheless commanded the Pentagon to ``bar the company from
further access to servicemembers.''
So the department is putting Phoenix on ``probation''
because it finds the ``scope of these previous violations''
to be ``disconcerting.'' What's really disconcerting--
According to the Wall Street Journal.
--is the Obama Administration's politicization of military
policy. Defense also cites ``inquiries'' by the Federal Trade
Commission and California Attorney General Kamala Harris.
To be clear, Phoenix hasn't been charged with wrongdoing.
According to the Defense Department, 96% of the university's
servicemembers successfully completed courses, a higher rate
than the public Central Texas College . . . and nonprofit
Liberty University. . . . In essence, the Obama
Administration's military tribunal is punishing Phoenix for
being a target of the political left.
Yet this is the White House standard of due process, so
Phoenix should be nervous.
I say to my friends and colleagues, they are nervous.
Last year the Education Department, Consumer Financial
Protection Bureau and Ms. Harris mounted a coordinated
campaign that drove for-profit Corinthian College out of
business without ever proving misconduct.
This is why I say to my colleagues that I am on the floor because
clearly, without any proof of misconduct, with the power of the U.S.
Senate, the Department of Education, the Consumer Financial Protection
Bureau, and Ms. Harris, they were able to drive a college out of
business. And it is obvious what this is really all about. This is all
about the constant attacks on for-profit colleges, which is an anathema
to some.
Continuing:
Over the last five years, Phoenix enrollment has dropped by
half to 220,000 students due largely to the left's assault on
for-profit education, which has knee-capped recruiting. . . .
Military tuition assistance makes up less than 1% of
Phoenix's revenues. However, many servicemembers who are
seeking vocational skills later pursue bachelor's and masters
degrees at the university under the GI Bill. Veterans make up
20% of the university's enrollment, and many need the
flexibility of Phoenix's online courses as they earn a living
while going to school.
Most of our veterans, because of their age, have to earn a living
while going to school.
The article continues:
The Administration's ostensible goal is to discredit
Phoenix and choke off veteran recruitment. But the casualties
of its attack will be servicemembers who will now have fewer
educational options and opportunities.
Meantime, General Durbin has commanded the Education
Department and Department of Veterans Affairs to ``take
appropriate action'' against the company. Bombs away.
I wish to point out that recently Senator Alexander, the chairman of
the
[[Page S7572]]
HELP Committee, Senator Flake, and I wrote a letter to Secretary
Carter. I will quote from it:
We strongly believe that these earned benefits and
educational opportunities for our servicemembers should not
be jeopardized because of political or ideological opinions
of some Members of Congress regarding the types of
institutions that provide postsecondary education to our
troops. . . . However, it is our understanding that Ms.
Bilodeau's decision--
She is the person who is the DOD's voluntary education partnership
head--
and threats of termination of participation in the TA program
rely on overly technical violations of the MOU.
What we are saying is we want due process, and these questions that
have been asked--we hope we can get an answer sooner rather than later.
Because Senator Durbin wrote also to other agencies of government, we
are also writing to them.
Mr. President, I ask unanimous consent to have printed in the Record
the letter to the Secretary of Defense from Senator Alexander, Senator
Flake, and me.
There being no objection, the material was ordered to be printed in
the Record, as follows:
U.S. Senate,
Washington, DC, October 22, 2015.
Hon. Ashton Carter,
Secretary, Department of Defense,
Defense Pentagon, Washington, DC.
Dear Secretary Carter: We write to ask that you review an
October 7, 2015, decision by Ms. Dawn Bilodeau, Chief of
Voluntary Education for the Department of Defense (``DoD''),
to place the University of Phoenix (``the University'') on
probationary and potential termination status with respect to
its participation in the DoD Tuition Assistance (TA) Program
for active duty military personnel. We strongly support
efforts to monitor the integrity of colleges and universities
serving our nation's servicemembers. However, based on our
review of the relevant documents associated with this
decision, we are concerned that the DoD's decision is unfair,
requires additional review, and may warrant reconsideration.
The TA program is an important benefit that enables active
duty military personnel to choose a postsecondary education
program that best fits their needs to enhance both career and
personal goals. The program also serves as an important tool
for the DoD to further the recruitment and retention efforts
of our nation's volunteer armed forces. We strongly believe
that these earned benefits and educational opportunities for
our servicemembers should not be jeopardized because of
political or ideological opinions of some Members of Congress
regarding the types of institutions that provide
postsecondary education to our troops.
As you know, the University of Phoenix participates in the
TA program through the DoD's Voluntary Education Partnership
Memorandum of Understanding (MOU), which conveys the
commitments and agreements between colleges and universities
and DoD and ensures that the TA funds are spent wisely to
support servicemembers attending quality educational
programs. However, it is our understanding that Ms.
Bilodeau's decision and threats of termination of
participation in the TA program rely on overly technical
violations of the MOU, fail to acknowledge any of the
University's corrective action or pledged cooperation and are
based, in part, on unsubstantiated allegations associated
with inquiries not initiated by the DoD.
With respect to the University's violation of DoD policies
on the use of official seals or other trademark insignia with
``challenge coins,'' Ms. Bilodeau's letter concedes that
``the University of Phoenix has responded to infractions with
appropriate corrective action at this time.'' While the
University has remedied this infraction, we are concerned
that traditional public or private, non-profit universities,
including Southern Illinois University, utilize similar
challenge coins with impunity. (See attached photographs.) We
remain skeptical that the DoD is evenly and uniformly
enforcing its policies on all institutions of higher
education and appears to be unfairly singling out certain
institutions of higher education based on a letter from the
Vice Chairman of the Defense Subcommittee of the Senate
Appropriations Subcommittee. (See Letter to Secretary of
Defense, June 30, 2015, attached.) It has also come to our
attention that on the evening of October 20th, DoD issued
additional new guidance on the use of these coins clearly
indicating that the regulatory field remained vague and was
not settled.
With respect to the University's apparent failure to obtain
specific approval for conducting partnership activities at
several military installations, it is our understanding that
the University obtained approval from the respective base
leadership to sponsor, sometimes at their request,
partnership events. While the University may have technically
violated the MOU's requirement that the University coordinate
with the Education Services Officer, those who have served in
the military readily understand and respect the chain of
command. Approval from the base leadership should be
sufficient to meet the requirements of the MOU regardless of
the Education Services Officer's involvement and, should not
be cited as a basis for probation and possible termination.
More concerning, however, is Ms. Bilodeau's rationale to
suspend participation in the TA program based on requests for
University documents by two government agencies that are not
in fact the DoD. It is worth noting that a request of
documents does not indicate a violation or admittance of
guilt. In fact, Ms. Bilodeau appears to agree, indicating
that the allegations by other entities have not yet been
substantiated. However, without fair warning or a sufficient
opportunity to be heard, the DoD informed the University of
Phoenix that, among other things, ``no new or transfer
students at your institution will be permitted to receive DoD
[tuition assistance]'' and it is actively considering
terminating its MOU with the University. Ms. Bilodeau's
decision to give the University fourteen (14) days to respond
to the probation decision effectively puts the University in
the position of having to respond to reviews undertaken by
agencies other than the DoD. These actions seemingly assume
the guilt of the University before they are proven and ignore
the remedied infractions identified by and directly within
the jurisdiction of the DoD.
The University of Phoenix has a long history of serving
working adults and others for whom traditional university
schooling is unavailable, including more than 200,000
enrolled civilian and military students spread out across
more than 100 locations in 17 states. With almost 20,000
faculty and 8,800 staff in every state and the territories as
well as just over 1,400 faculty and 6,300 staff in Arizona
alone, the University of Phoenix is a significant member of
the Arizona and broader higher education community. Like any
organization that chooses to partner with the DoD to serve
our servicemembers, the University has a legitimate
expectation to be dealt with fairly and reasonably. Given our
aforementioned concerns, we believe that the DoD's
decision should be evaluated for considerations of
fairness and cooperation and ask that you independently
and carefully review this bold decision.
To help us obtain a better understanding of the DoD's
actions in this matter, and to help ensure that all
institutions of higher education--for-profit, public and
private, non-profit colleges and universities--are held to
the same standard of conduct relative to DoD rules and
regulations, we ask that you provide us with the following
information by October 30th before you take any additional
action on this matter:
1) What are the specific, factual, and evidentiary bases
for the DoD's recent decision to place the University of
Phoenix on probationary status?
2) Did anyone besides Ms. Bilodeau review this decision?
Please provide any internal decision memorandum that reflects
that decision when it was originally made.
3) Please describe why the DoD official who reviewed the
decision believes he/she can place the University on
probation when, as Ms. Bilodeau stipulates in her October 7th
letter, the University has already remedied identified
infractions of the MOU?
4) Please provide all documents, including communications
from Members of Congress, or their staff, and any outside
party regarding the University of Phoenix and this matter.
Also, provide the guidelines relating to the establishment of
a probation sanction or imposition of probationary status
against the University of Phoenix.
5) Please provide a list of all institutions of higher
education participating in the DoD's Voluntary Education
Partnership and/or Tuition Assistance programs that have been
placed on probationary status in connection with a violation
of their MOU; the reasons each of those schools were placed
on probationary status; and whether each such school was
given opportunity to make corrective actions before being
placed on probationary status.
6) Please provide a list of those schools where the DoD MOU
was terminated and the reasons for such termination.
7) Is it the DoD's practice to place both for-profit and
not-for profit universities on probation when another federal
or state agency makes a civil investigative demand for
documents? If so, please identify other instances where this
has taken place and the reasons for taking such action.
8) Please list those schools that currently use or
previously used challenge coins with DoD official seals or
other trademark insignia; indicate whether such schools
obtained prior DoD authorization for such use; describe any
sanctions imposed for such use; and provide any documents or
correspondence relating to such use or sanction
determination.
9) Please describe the military chain of command as it
relates to the MOU and a decision by the base leadership to
permit an institution to sponsor an event on base.
10) If this probationary period is extended or the MOU with
the University of Phoenix is terminated, how many active duty
military personnel do you estimate will be impacted by this
decision?
The TA program is critical to our nation's servicemembers'
educational and career opportunities, primarily to prepare
them to serve in positions of increased responsibility within
the military, but also to prepare them to transition to
productive civilian careers. While we support efforts to root
out waste, fraud, and abuse, we hope that you will review
this situation with great caution and care. The Senate
Committee on Health,
[[Page S7573]]
Education, Labor and Pensions is additionally in the process
of reauthorizing the Higher Education Act and exploring ways
to ensure quality at all of our colleges and universities is
of utmost importance and concern.
We look forward to your timely response and should you have
additional questions, please feel free to ask your staff to
contact our Chiefs of Staff Pablo E. Carrillo (Senator
McCain), at (202) 224-7123; Chandler Morse (Senator Flake),
at (202) 224-4521; and David Cleary (Senator Alexander) at
(202) 224-8798.
Sincerely,
John McCain,
U.S. Senator.
Jeff Flake,
U.S. Senator.
Lamar Alexander,
U.S. Senator.
Mr. McCAIN. We sent these letters to the Veterans' Administration and
to the Department of Education requesting that they notify us if
further action is taken against the university. We sent these letters
because we feel that the Department of Defense's decision and threats
of termination of participation by the University of Phoenix in this
program were done simply because the Senator from Illinois sent a
letter to the Department of Defense highlighting an outside
investigative report--an outside investigative report--suggesting
wrongdoing on the part of the University of Phoenix.
Let's be clear again. There was no due process here. That is what I
want--due process. If the University of Phoenix is guilty of some
wrongdoing, I want to be one of the first to make sure the proper
penalties are enacted. I do not--I repeat--I do not believe that on the
basis of a single investigative report, that action should be taken.
With this in mind, I was stunned to hear once again that the Senator
from Illinois is insisting that the DOD not reverse its decision. Given
his own involvement in the matter, his suggestion that the DOD not
reverse its decision just because Members of this body conveyed concern
about the merits of its probationary decision and the fundamentally
unfair way that the DOD made it is, in fact, ridiculous.
The whole matter arose from the Senator from Illinois pressuring the
DOD to take adverse action against the university. His case was based
not on an affirmative finding by the Department that the university
engaged in any newly identified acts of substantial misconduct but a
report by an outside investigative group. He then sent letters to the
Department of Education and Department of Veterans Affairs asking for
similar action.
After further review of the DOD's decision, it is my opinion that,
No. 1, it relies on overly technical violations of a memorandum of
understanding that the university signed with the Department of Defense
regarding its participation in the Tuition Assistance Program; No. 2,
it fails to reflect the actions the university has taken to correct and
identify violations; and No. 3, it is based in part on unsubstantiated
allegations associated with inquiries for information by other
agencies, not findings of new violations.
In other words, with our letter, we asked Secretary Carter to review
a lower level decision to put the university on probation where even
the DOD conceded, in its very letter to the university announcing its
decision, that ``the University of Phoenix has responded to infractions
with appropriate corrective action at this time.''
With respect to the university's proposed violations of DOD policies
on the use of official seals or other trademark insignia with
``challenge coins,'' we understand the university has remedied this
infraction. But it is worth noting that traditional public or nonprofit
universities, including Southern Illinois University, utilize similar
challenge coins with impunity. I remain skeptical that the DOD is
evenly and uniformly enforcing its policies on all institutions of
higher education and appears to be unfairly singling out certain
institutions of higher education based on a letter from the Senator
from Illinois.
With respect to the university's apparent failure to obtain specific
approval for conducting partnership activities at several military
installations, it is our understanding that the university obtained
approval from the respective base leadership to sponsor, sometimes at
their request, partnership events. While the university may have
technically violated the MOU's requirement that the university
coordinate with the education services officer, those who have served
in the military readily understand and respect the chain of command.
Approval from the base leadership should be sufficient to meet the
requirements of the MOU regardless of the education service officer's
involvement.
By the way, the education service officer did not turn this down;
they just were not consulted.
In the absence of significant, substantiated findings regarding new,
uncorrected violations, the Department of Defense decided to suspend
the university from participating in the Tuition Assistance Program
based on document requests by two government agencies that are not, in
fact, the Department of Defense and does not indicate a violation or
admittance of guilt.
We call on our service men and women to serve and protect our
interests, often at great cost to themselves and their families. Yet
the Senator from Illinois suggests that they are not capable of
choosing their own path when determining their postsecondary
educational needs.
By the way, on a technical violation of the budget agreement, the
Senator from Illinois was one of the leaders in voting against the
Defense authorization bill, which was the result of many years of work.
In all cases, opinions should absolutely not be used to essentially
target a valued member of Arizona's education community. The University
of Phoenix has a long history of serving nontraditional students, such
as Active-Duty military and others who tend to delay enrollment after
high school, work full time, have dependents, or are single parents for
whom traditional university schooling is unavailable. The University of
Phoenix has graduated more than 80,000 military and veteran students
with postsecondary degrees.
A recent Wall Street Journal article I quoted--and contrary to the
preference of this administration, and for the sake of our
servicemembers who earned and rely on this educational benefit, I
promise I will not let this issue go.
The State of Arizona is proud to have the University of Phoenix as a
member of its higher education community.
As the questions that I posted in this letter show, I will continue
to look into this action based on the merits of DOD's decision, not
ideological grandstanding.
Recently, as a result of this, I received letters from three students
who recently graduated from the University of Phoenix.
Andrew Workman of North Carolina said:
University of Phoenix allowed me to work 50 hours a week
and pursue my degree at the same time.
Ryan Zulkoski of Nebraska received his master's in nursing
informatics in 2013. He said:
I loved my experience and UOPX has opened so many doors for
me.
Jim Wallace of Florida said:
I am a UOPX graduate, MBA 2006 and veteran of the US Navy
Reserve. In my opinion UOPX led the way in educating working
professionals. At the time I started my program, no other
institutions offered the ability for me to successfully
complete my studies, care for my family and work a demanding
job. The bottom line is that it was challenging and I worked
hard to complete my degree.
Mr. President, I ask unanimous consent to have these comments by
graduates printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Andrew Workman (North Carolina) joined the United States
Navy in 2006. After serving 4 years on active duty he is
transitioned into the United States Navy Reserve in which he
continues to serve not only his country but his fellow
Sailors through the Hire Heroes USA organization.
``University of Phoenix allowed me to work 50 hours a week
and pursue my degree at the same time.'' Andrew attended a
ground campus and found the classes to be diverse and
challenging. ``The team projects and presentations helped
build my confidence and laid a foundation for me to be
successful in the workplace. You have to work with people
from all walks of life in the real-world and University of
Phoenix built that into their curriculum.''
Ryan Zulkoski (Nebraska) received his Master's in Nursing
Informatics in 2013. Ryan has been in the Army National Guard
for 12 years and served one deployment to Iraq in 2005 and
has many other accomplishments and memberships, including a
humanitarian deployment to Nicaragua and participation in
Army Honor Guard. He used every last benefit to receive his
bachelor's in nursing from University of Nebraska and his
[[Page S7574]]
master's degree with UOPX. ``UOPX has helped me build an
educational foundation to work in a field that I am extremely
passionate about.'' Ryan found the quality of the program to
be on par with his undergraduate from University of Nebraska.
``I graduated from UOPX in 2013 and have doubled my salary as
a Nurse in less than 2 years. I also have 4 children and a
wife, so attending a traditional onsite program was
impossible. I loved my experience and UOPX has opened so many
doors for me.''
Jim Wallace (Florida)--``I am a UOPX graduate, MBA 2006 and
veteran of the US Navy Reserve. In my opinion UOPX led the
way in educating working professionals. At the time I started
my program, no other institutions offered the ability for me
to successfully complete my studies, care for my family and
work a demanding job. The bottom line is that it was
challenging and I worked hard to complete my degree.''
Mr. McCAIN. Mr. President, again, I can only point out what the Wall
Street Journal said. This is Obama's for-profit stealth attack. It is
being orchestrated and carried out by the Senator from Illinois, who
has a well-known record of not supporting the men and women who are
serving in the military by his latest opposing of the Defense
authorization bill on the grounds of OCO. So the men and women who are
serving in the military and those who have served with honor obviously
have a lower priority for him than his vendetta against for-profit
universities. I think it is shameful.
I yield the floor.
The PRESIDING OFFICER. The majority leader is recognized.
____________________