Letter to the Hon. Betsy DeVos, Department of Education - Dept Of Education Official Advised Dream Center Education Holdings To Misrepresent Accreditation Status To Students

Letter

Dear Secretary DeVos:

We write today to call for an immediate response to troubling allegations made in a recent article that Diane Auer Jones, Principal Deputy Under Secretary delegated to perform the duties of Under Secretary and Assistant Secretary for Postsecondary Education, encouraged Dream Center Education Holdings (DCEH) to misrepresent the accreditation status of its Illinois Institute of Art and Art Institute of Colorado campuses. If true, Ms. Jones' actions would amount to a serious breach of the public trust.

We have long been concerned about the acquisition by DCEH of institutions formerly owned by for-profit Education Management Corporation. As part of the approval of that transaction, the Higher Learning Commission (HLC) removed accreditation from DCEH's newly acquired Art Institute of Colorado and the Illinois Institute of Art which included campuses in Chicago and Schaumburg, Illinois and Michigan -- transitioning these institutions for "candidates for accreditation." HLC noted that the loss of accreditation could have serious consequences for current and prospective students and that students "should know that their courses or degrees are not accredited by HLC and may not be accepted in transfer to other colleges and universities or recognized by prospective employers." Because of these risks, HLC required the institutions to provide students with "proper advisement and accommodations."

On June 26, Senator Durbin wrote to the Higher Learning Commission and copied Department of Education Chief Enforcement Officer Julian Schmoke, after the Pittsburgh Post-Gazette reported that DCEH failed to inform students of the loss of accreditation and disclose the potentially negative impact on students' ability to transfer credits or get a job. According to the Post-Gazette, DCEH continued to actively claim "in statements online and in school catalogs" that the campuses remained accredited by HLC despite the accreditor's clear statement to the contrary. These allegations demand the Department's immediate attention. If true, DCEH's actions would be a serious violation of law and appear to give Illinois and other students a legitimate basis for federal student loan discharges under the Borrower Defense provision of the Higher Education Act.

But in an incredible twist, a new report alleges that Ms. Jones is behind the misrepresentation. According to the article, in a meeting at Department headquarters earlier this year a group of Department staff led by Ms. Jones told a delegation from DCEH, including CEO Brent Richardson, to publicly represent that the Art Institute of Colorado and Illinois Institute of Art continued to be accredited. If the allegations against Ms. Jones are true, the Department of Education could be complicit in the illegal deception of students -- taking this deception of students under your leadership to an unimaginable level.

Please respond, no later than September 13, to the following:

Did Ms. Jones -- verbally or in writing -- direct or advise Dream Center Education Holdings to publicly represent that the Illinois Institute of Art and the Art Institute of Colorado "remain accredited" despite the schools' accreditor telling DCEH that they were not accredited?
Did any other Department staff or official -- verbally or in writing -- direct, or advise Dream Center Education Holdings to publicly represent that the Illinois Institute of Art and the Art Institute of Colorado "remain accredited" despite the schools' accreditor telling DCEH that they were not accredited? If so, please provide their names and positions and at whose direction the Department staff provided this guidance.
What was the stated purpose of the above referenced meeting between the Department and the DCEH delegation? Please provide a list of individuals present at this meeting.
Please provide all documents and communications pertaining to any directive or advice from Department officials to DCEH that the latter publicly represent that the Illinois Institute of Art and the Art Institute of Colorado "remain accredited" despite the schools' accreditor telling DCEH that they were not accredited -- including any notes from the above referenced meeting.
Has the Department's Enforcement Unit opened an investigations into allegations that DCEH misrepresented the accreditation status of the Art Institute of Colorado and Illinois Institute of Art?

We look forward to your timely response. Thank you.

Sincerely,