Owner of Stevens-Henager College sues U.S. Department of Education over for-profit status

Sep 5, 2016 by

A chain of private colleges is taking the federal Department of Education to court over the recent denial of nonprofit status for Utah’s Stevens-Henager College and its sister schools.

A complaint filed Monday in U.S. District Court for Utah accuses the department and U.S. Education Secretary John King of arbitrarily targeting for-profit schools for “burdensome compliance requirements” during the process of converting to a nonprofit structure.

“Such actions indicate an intentional effort to close those formerly for-profit institutions,” the complaint states.

The complaint was filed by Center for Excellence in Higher Education, or CEHE, which in 2012 acquired Stevens-Henager College, California College San Diego, CollegeAmerica and Independence University.

The school chain was previously owned by the Carl Barney Living Trust, and the 2012 merger included the appointment of Barney as chairman of the CEHE board of directors.

Barney’s position within CEHE, as well as ongoing debt and lease payments made to Barney as a result of the merger, were cited by the Department of Education on Aug. 11 in a decision that denied nonprofit status to the school chain.

 

Source: Owner of Stevens-Henager College sues U.S. Department of Education over for-profit status | The Salt Lake Tribune

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