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WILKES-BARRE — Attorney General Josh Shapiro this week announced a proposed settlement with Aequitas Capital Management, a defunct investment firm, that provides $6.7 million in debt relief for 1,200 Pennsylvanians who attended for-profit colleges.

The proposed settlement, which is subject to approval by an Oregon federal court overseeing Aequitas’ receivership, is part of a broader settlement worth $192 million in debt relief for former Corinthian College students across the country. Once approved by the Oregon court, the settlement agreement will be filed in Pennsylvania by the Office of Attorney General’s Bureau of Consumer Protection.

Aequitas holds student loan accounts related to the now-defunct Corinthian Colleges, a large for-profit chain of 30 schools that filed for bankruptcy in 2015. In Pennsylvania, Corinthian operated the Everest Institutes in Bensalem and Pittsburgh, and WyoTech, later bought by an unrelated entity, in Blairsville, Indiana County.

“Aequitas and Corinthian Colleges engaged in predatory practices that preyed upon students trying to better themselves through education,” Shapiro said in a news release. “This proposed settlement will provide badly needed debt relief for 1,200 Pennsylvania students. I will continue to protect Pennsylvania college students and their families by holding these for-profit institutions and lenders accountable for their deceptive practices.”

Once the court has approved the settlement, students in Pennsylvania with these loans from the Corinthian Colleges will receive notice their debt has been forgiven.

The original investigation into the deceptive loans and dealings between Aequitas and Corinthian was conducted by the Consumer Financial Protection Bureau. The probe revealed the private student loan program funded by Aequitas and offered to Corinthian students was a facade to comply with federal rules meant to ensure for-profit schools don’t receive more than 90 percent of their revenues from U.S. Department of Education loan and grant programs.

According to the investigation, Corinthian students were never told the portion of their tuition funded by the Aequitas-financed loans was a sham to gain access to federal funds and that the loans had historically high default rates. In addition, Corinthian Colleges induced students to enroll with systemic misrepresentations of job placement rates and career support services.

Wolf touts time reduction

for Pa. standardized tests

As students and teachers prepare for back to school, Gov. Tom Wolf joined Secretary of Education Pedro Rivera and education advocates for a recent “Schools that Teach” event in Pittsburgh to announce students and teachers will spend at least 20 percent less time on the Pennsylvania System of School Assessment tests this school year.

“Parents, teachers and students have expressed concerns to me about the amount of time devoted to standardized tests,” Wolf said in a news release. “This reduction to the PSSA is an important step to giving students and teachers more time for learning while maintaining the accuracy of the test and reducing the burden on the kids.”

Beginning this school year, students and teachers in grades 3 through 8 will spend an average of 20 percent less time on statewide testing, and an even greater reduction – nearly 25 percent – for Pennsylvania’s youngest students. The state has removed two sections – one in math, one in English language arts – and additional questions from the science section, which could eliminate up to two full testing days for some schools.

Currently, the PSSA exams take place during a three-week testing window identified by school districts, and this schedule will apply to the shortened assessments in 2018. For test administration in 2019, the Department of Education anticipates shortening that window and moving it toward the end of the year to provide educators more time for curriculum instruction and to minimize disruptions to classes.

The state identified the PSSA changes during discussions for nearly a year when developing the Every Student Succeeds Act (ESSA). The plan is a federal requirement to replace the No Child Left Behind Act.

“The department worked extensively with experts and stakeholders to make this change to the PSSAs and ensure that the exams are still accurate and maintain rigor,” said Secretary Rivera. “Although standardized tests are still required by the federal government and can provide meaningful information to schools and parents, we know that there are other equally important indicators of student success.”

Details about the PSSA reduction are available in Pennsylvania’s ESSA Consolidated State Plan on the PDE’s website. The plan is open for public comment until Aug. 31.

Importance of ag industry

stressed at PSU Progress Days

During a visit to Penn State University’s Ag Progress Days, Gov. Tom Wolf this week called Pennsylvania’s agriculture industry one of its most important economic and environmental resources, and he stressed the need to continue supporting the industry for its long-term success.

“As a former agricultural extension worker during my time in the Peace Corps, I know firsthand how agriculture can play a role in building vibrant communities, a vibrant economy, and the power of food to change lives,” Wolf said in a news release. “And in talking to and working with many of you, I know that you share those beliefs. That is why my administration has invested so heavily in agriculture.”

Last year, Wolf proposed the largest-ever level of operational funding for the Department of Agriculture. Since 2015, the administration has increased operational support by more than $5.8 million — a 23 percent boost. The administration has also committed another $2 million for avian influenza planning and response; increased funding for farmland preservation by more than $12.5 million — a 45 percent increase — compared to 2014-15; and done more to connect producers to the commonwealth’s charitable food system through $1 million in new funding in each of the past three years.

Working with the General Assembly, the administration increased funding to the Penn State College of Agricultural Sciences and Cooperative Extension by more than $6 million over the past three years as part of a bipartisan effort to help restore a portion of the 19 percent cut the college endured in 2011.

During his remarks, the governor also called on the General Assembly to complete its work on the 2017-18 state budget.

Wolf
https://www.timesleader.com/wp-content/uploads/2017/08/web1_Wolf_Tom-07-24-14-cmyk.jpg.optimal.jpgWolf

The Capitol building in Harrisburg
https://www.timesleader.com/wp-content/uploads/2017/08/web1_PA-capitol-2.jpg.optimal.jpgThe Capitol building in Harrisburg

By Bill O’Boyle

[email protected]

Reach Bill O’Boyle at 570-991-6118 or on Twitter @TLBillOBoyle.