Self-study: Crisis in For-Profit Education: Subprime Goes to College

Based on live webinar of August 22, 2013

In this program, a panel of experts discusses recent challenges facing the for-profit education industry, including the difficulties impacting investors and lenders in an industry where bankruptcy is not compatible with the accreditation and regulatory environment, and where changes in capital structure, ownership and mission are subject to regulatory review. Topics include recent initiatives by the GAO, the Departments of Justice (DOJ) and Education (DOE) as well as State Regulators (Texas and Florida), and how challenges from the plaintiff’s bar have impacted workouts and restructurings. The presenters also cover challenges facing lenders in this industry, recent financings, and the closure of select schools which failed to navigate these troubled waters.

Learning Objectives
After completing this program, participants will be able to:

  1. Describe industry trends and changes that are creating the current challenges, including changes in Title IV and other regulations; relationship between revenue growth and government guaranteed debt; competition and alternative delivery models; and changing enrollment demographics.
  2. Explain how regulatory environment changes are impacting school operators’ access to Title IV funds.
  3. Discuss business implications, including declining EBITDA margins, and the relationship between current market valuations and equity cushion.
  4. Identify constraints imposed by the Higher Education Act-Events of Default provisions.


Robert Tormey, CIRA, CPA, Managing Director, Carl Marks Advisory Group (Moderator) Mr. Tormey’s advisory and management experience within the education sector includes acting as Chief Financial Officer for a regionally accredited online university, working with Boards of Directors of for-profit companies facing regulatory actions, and advising lenders of for-profit educational institutions. Mr. Tormey holds an MBA from Cornell University.

Dennis Cariello, Chair, Regulatory Compliance and Strategies Section, DLA Piper's Education and Education Services Industry Sector Group Mr. Cariello focuses his practice on the regulatory concerns of institutions of higher education, student lenders and higher education service providers. He represents parties before the US Department of Education and before Congressional Committees, assists schools in navigating through regulatory compliance matters, and advises private equity firms and global investment funds in executing transactions in the post-secondary education sector.

Harold Levy, Managing Director, Palm VenturesMr. Levy concentrates on investments in education, regulated industries and allied fields. He has extensive management and acquisition experience in education and finance. Mr. Levy was formerly the New York City Schools Chancellor, Executive Vice President and General Counsel of Kaplan, Inc., Director of Global Compliance of Citigroup, Head of Litigation of Salomon Brothers and Managing Director of Plainfield Asset Management. He holds a B.S. and J.D. from Cornell and a M.A. (PPE) from Oxford. Mr. Levy is Treasurer of the Roosevelt Institute and a member of the Council of the Woodrow Wilson Center for International Scholars among other distinguished affiliations.

Tonya Parker–Jones , Founding Principal, Alliance for Student Aid Processing Ms. Parker-Jones has 25 years experience in the financial aid/ business office management and operations of for-profit education institutions. Ms. Parker is an active participant in national and state accrediting associations and has responded to over 1,000 accreditation program reviews conducted by state accredited and Federal agencies. Ms. Parker–Jones gained experience as the Lead Quality Assurance Specialist for a nationwide chain of for profit schools. As Vice President of a multi–campus organization, Ms. Parker was designated as a Reimbursement Expert by the Department of Education. Ms. Parker-Jones supported a major online university in its response to an investigation by the Office of Inspector General of the Department of Education and was successful in securing and maintaining the school’s Program Participation Agreement for continued access to Title IV (‘financial aid’) funding. Ms. Parker-Jones has advised 13 institutions placed under Heightened Cash Monitoring 2 (HCM2) by the Department of Education and worked with each to successfully develop the necessary administrative capabilities to support HCM2.

Price $65
CPE Credit Recommended, 1 CPE Credit hour(s), field of study—Accounting - Technical;
Knowledge level Basic—Most beneficial to CPAs and other financial advisors new to a skill or attribute, including individuals at staff or entry level in an organization as well as seasoned professionals who desire increased knowledge in the subject matter.
Additional Info Online registration and payment of fee will allow materials to sent to the participant’s email address and the participant must submit request for CPE credit after completing the requirements (instructions enclosed with materials). Presenters’ PowerPoint slides for reference are included with materials. If unable to register online, participants may call AIRA’s office at (541) 858-1665 to order.
Format Digital Materials
Prerequisites None
Advance prep None

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Requests for refunds must be received within 10 days after receipt of course subject to a $25 cancellation fee and return of all materials in good condition.

Question Resolution

For assistance regarding refunds, program cancellations, or other program related matters, please contact our offices at (541) 858-1665 or by email

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"Association of Insolvency and Restructuring Advisors" is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: