Search

The purpose of these hearings was to explore the problems that unaccredited, substandard colleges and universities, often referred to as diploma mills, pose to the Federal Government and to private-sector employers. The schools examined during these hearings practice a sophisticated form of deception and they charge students accordingly. All of the schools we investigated gave credit for prior work or life experience, even for advanced degrees, which is very rare among accredited institutions. One institution's list of life experiences that could qualify for academic credit included horseback riding, playing golf, pressing flowers, serving on a jury, and planning a trip. The schools examined also required their students to do some modicum of work, either tests or papers or both, and they at least give the impression that the school includes professors with suitable academic credentials who actually play a role in the school's academic programs. The danger of these more sophisticated diploma mills is that they can attract a far broader range of students. The schools investigated take pains to try to convince prospective students that they are legitimate and that students have to earn their degrees. That is why a healthy dose of credit for work and life experience becomes such a critical component of their business model. That is what permits these more sophisticated diploma mills to assume an air of legitimacy while minimizing the actual amount of work required. During the two days of these hearings, the focus was on the challenges posed by diploma mills to the Federal Government. Opening statements at the hearings were provided by: Senators Collins; Akaka; Lautenberg; Carper; Durbin; Lieberman; and Pryor. Witnesses provided testimonies and prepared statements on both days of the hearings. An appendix presents: (1) memorandum dated April 15, 2004; and (2) questions and responses for the record from various participants. (Contains 31 exhibits.)

The Subcommittee conducted an oversight hearing on Section 529 College Savings Plans, State-sponsored investments that are designed to encourage families to save money for their children's college education. Section 529 refers to the Internal Revenue Code section that authorizes and confers special tax treatment on these entities. Section 529 College Savings Plans are instrumentalities of the various State Governments. The States usually organize the plans as trusts which, in turn, typically invest the plan assets in mutual funds managed by third party asset managers. This oversight hearing built on two previous hearings in which this Subcommittee examined mutual fund management and governance, mutual fund fees, and the adequacy of fee disclosures. Testimony was presented by: Senator Peter G. Fitzgerald (R-IL); Senator Frank Lautenberg (D-NJ); Senator Mark Pryor (D-AR); Senator Daniel K. Akaka (D-Hawaii); Steven T. Miller, Commissioner, Tax Exempt and Government Entities Division, Internal Revenue Service; Mary L. Schapiro, Vice Chairman and President, Regulatory Policy and Oversight, NASD; Ernesto A. Lanza, Senior Associate General Counsel, Municipal Securities Rulemaking Board; Michael A. Ablowich, Treasurer, State of New Hampshire, on behalf of the National Association of State Treasurers; Jacqueline T. Williams, Executive Director, College Advantage Savings Plan, Ohio Tuition Trust Authority, on behalf of the College Savings Plan Network; Martin M. Noven, Deputy Chief of Staff, on behalf of Judy Baar Topinka, State Treasurer, State of Illinois; Richard O. Davis, Deputy Executive Director for Finance and Administration, Utah Higher Education Assistance Authority; Daniel McNeela, CFA, Senior Analyst, Morningstar, Inc.; and Mercer E. Bullard, President and Founder, Fund Democracy, Inc. Appendices includes a chart entitled "Value of a $10,000 investment after 10 years"; a chart entitled "Value of a $10,000 investment after 18 years"; a chart entitled "Growth in Section 529 Plans 1996-2004"; The "529 Plan Information" chart from the Morningstar website; Barbara Hafer, Treasurer, Commonwealth of Pennsylvania, prepared statement with an attachment; Tim Berry, Indiana State Treasurer and NAST President, National Association of State Treasurers; and Questions and Responses to Senator Lautenberg from Mr. Miller, Mr. Lanza, Ms. Schapiro, Mr. McNeela, and Mr. Bullard.

A hearing was held to explore the problem of binge drinking on campus and to consider possible responses to this problem. Following an opening statement by Senator Joseph Lieberman, a panel of witness who have done research and work in the field gave testimony. These witnesses commented on the problem of binge drinking: (1) Raynard S. Kingston, Acting Director, National Institute on Alcohol Abuse and Alcoholism, National Institutes of Health; (2) Ralph W. Hingson, Professor and Associate Dean for Research, Boston University School of Public Health; and (3) Mark S. Goldman, Director, Alcohol and Substance Abuse Research Institute, University of South Florida. A second panel of witnesses spoke of real-life impacts of binge drinking. They included: (1) Daniel P. Reardon, parent of a student who died of alcohol poisoning; (2) John D. Welty, President, California State University, Fresno; (3) Robert F. Nolan, Chief of Police, Hamden, Connecticut; and (4) Drew Hunter, Executive Director, the BACCHUS and GAMMA Peer Education Network. An appendix contains some prepared statements from C.D. Mote, Jr., president of the University of Maryland and Catherine Bach, program director of Security on Campus. Prepared statements of the witnesses are also included. (SLD)

This document presents testimony and prepared statements concerning the lack of information about educational and career opportunities for young people beyond high school, and the need for improving access to student financial aid information so that economically disadvantaged students have the opportunity to go on to higher education. Witnesses were: Col. John C. Meyers, Director, Advertising and Public Affairs, U.S. Army Recruiting Command; Hon. Ernest C. Canellos, Acting Deputy Assistant Secretary, Office of Student Financial Assistance, U.S. Department of Education; Gwendolynne S. Moore, Representative, Seventh Assembly District, State of Wisconsin; Selena Dong, Legislative Director, United States Student Association; Regina E. Manley, president National Association of College Admission Counselors, Chicago [IL] Public Schools; Gary D. Bass, Executive Director, OMB Watch; and A. Dallas Martin, Jr., President, National Association of College Admission Counselors. Also included in the document is a U.S. Department of Education publication called "The Key to the Future," that provides information to assist those interested in seeking student aid, including how to get it, what's available, and general information on the department's Student Aid process. Appendices contain: (1) prepared statements of witnesses in order of appearance; (2) statements from Senators Lieberman and Rudman; (3) responses from the National Association of Student Financial Aid Administrators to Senator Rudman's questions; and (4) responses to questions from Senator Kohl by the U.S. Department of Education. (GLR)

The transcript of the hearing that examined S. 1951, a bill to establish a Federal Interagency Council on Science, Mathematics, and Technology Education, is presented. The purpose of the bill is to promote cooperation and coordination among the dozen or so federal agencies that administer programs in science and math education. Witnesses include the following officials: (1) John Andelin, Office of Technology Assessment; (2) Christopher T. Cross, Office of Educational Research and Improvement; (3) Mark O. Hatfield, Senator from Oregon; (4) Sue Kemnitzer, former executive director, Task Force on Women, Minorities, and the Handicapped in Science and Technology; (5) J. Thomas Ratchford, National Science Foundation; (6) Richard E. Stephens, Department of Energy; and (7) Luther Williams, National Science Foundation. The text of S. 1951, the prepared statements of witnesses in order of appearance, a report on "Coordination of Programs on Mathematics and Science Education for the Department of Education, the National Science Foundation, and Other Agencies," and a letter to Senator Glenn from Christopher T. Cross dated June 14, 1990 are appended. (KR)

This document presents oral testimony and prepared statements on the subject of federal student loan programs identified as particularly vulnerable to fraud, waste, and abuse. Opening statements by the four Senators (Nunn, Kohl, Roth, and Levin) stress the seriousness of increasing student loan defaults and abuses by proprietary, for profit, trade schools. Oral testimony and exchanges with the Senators are then given for the following individuals: Franklin Frazier, Director, Education and Employment Issues of the General Accounting Office; David B. Buckley, Chief Investigator of the Permanent Subcommittee on Investigations; James B. Thomas, Inspector General, Department of Education; two students, an employee, and the president of the American Career Training School. Much of the document consists of exhibits pertaining to the American Career Training Travel School (Florida) investigation and related documents concerning proprietary trade schools including a statement by the National Association of Trade and Technical Schools. (DB)

This document reports oral testimony and prepared statements of persons who testified at hearings on abuses in federal student aid programs. Witnesses included proprietary school owners, officials from accrediting bodies and other educational organizations. Their testimonies focused on the various problems and discrepancies occurring within the federally guaranteed student loan program, and specifically, the Triad system of state accreditation/certification involving self regulation by industry, eligibility conferred by the U.S. Department of Education on trade and proprietary schools, and the victimization of proprietary students by school owners. (LPT)

It appears that many of the problems plaguing the Federal Student Aid Programs are also undermining the Pell Grant program, not so much from dishonesty on the part of students, but by dishonesty on the part of schools. This document presents testimony and prepared statements concerning the allegations of fraud, abuse, and mismanagement in the Federal Pell Grant program and the effectiveness of the Department of Education in detecting and responding to these problems. Two-thirds of the document is an appendix of 96 exhibits of selected documents, letters, affidavits, and reports from witnesses in order of their appearance before the committee. Among the witnesses testifying before the committee were the following individuals: Senator Claiborne Pell of Rhode Island; Richard C. Stiener, Director of the Office of Special Investigations, U.S. General Accounting office; James B. Thomas, Jr., Inspector General, U.S. Department of Education; David A. Longanecker, Assistant Secretary, Office of Postsecondary Education, U.S. Department of Education; and Sister Janet Fitzgerald, President of Molloy College, Long Island, New York. (GLR)

The Congressional hearing examined abuse, mismanagement, and fraud in student loan programs focusing on the fraudulent activities of proprietary schools. Witnesses included officials of the Department of Education including:(1) Laura F. Cavazos, Secretary; (2) Ernest C. Canellos, Student Financial Assistance; (3) John S. Haines, Debt Collection Management and Assistant Service; (4) John B. Childers, Higher Education Programs; and (4) Edward C. Stringer, General Counsel. Their testimony focused on ways to eliminate recognized discrepancies and illegalities within the federally guaranteed student loan program. (LPT)

The congressional hearing report scrutinized the role of banks, guarantee agencies, student loan secondary markets, and loan servicers in the operation of federal student aid programs. Program weaknesses which have contributed towards to abuse and fraudulent practices of federally backed student loans were identified. Witnesses included officials from major banks, guarantee agencies, loan services and student aid commissions and their testimonies focused on matters such as: guarantee agency solvency, the economics of student lending, institutional default rates, loan defaults, mismanagement of programs, and program reform, among other issues. (LPT)