Heald College closure is an education in tragedy - SFGate

Heald College - a rare jewel in higher education - may close in the next month. As a past president of Heald, I'm heartbroken, but not surprised. There's a story to be told here, and some of it has to do with greed, lousy management and a necessary kick in the pants to the for-profit educational sector.

Last week, the U.S. Department of Education notified Corinthian Colleges, the owners of Heald, that due to what has been called an enormous case of alleged fraud and promises to students that could not be fulfilled, federal loans to students at Heald and other Corinthian assets may lead to permanent closure of the individual institutions.

Heald began in 1863 as a for-profit institution, and long before students turned to the federal government for federal loans, it was a formidable. To pay for tuition, most students worked full or part time or borrowed from their families. That system worked, and Edward Heald went on to become not only affluent but, more important, an early philanthropist to many Bay Area charities, returning the profit he made into scholarships for needy students.

By the time I arrived as president in 2000, Heald boasted 12 campuses in California, Oregon and Hawaii, serving over 1,000 students at each. Our earnings were almost $100 million a year, but more important, over 80 percent of all of our students were minorities. More than 85 percent of them were placed in the career of their choice within six months of graduation. We tracked and documented those numbers if they were ever challenged. In essence, there was rigor, commitment, and a body of faculty and staff that was first rate.

But something happened in the past decade.

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The end of Heald College is a tragedy for the Bay Area. It is a tale of how for-profit, sales-driven leaders allegedly sold degrees that had empty promises behind them. It is a story littered with student complaints that went unanswered. Accountability was required, but too many people ignored the warning signs.

Heald College closure is an education in tragedy - SFGate