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Purdue University's Unprecedented Move to Acquire a For-Profit College

Purdue University’s acquisition of Kaplan University is an unexpected tectonic shift in American higher education, revealing both the changing roles of public universities and the dwindling fortunes of for-profit colleges.

Purdue University’s acquisition of Kaplan University is an unexpected tectonic shift in American higher education, revealing both the changing roles of public universities and the dwindling fortunes of for-profit colleges.

The deal announced Thursday has the Indiana-based public research university acquiring nearly all of the credential-issuing side of Kaplan’s higher education business -- seven schools and colleges that make up Kaplan University, but not its School of Professional and Continuing Education.

Roughly 32,000 Kaplan students, 15 campus locations and 3,000 employees are slated to join Purdue under a newly created nonprofit university that will carry some version of Purdue’s name. About 85 percent of Kaplan’s current students are enrolled in fully online programs, with the rest in hybrid ones.

The public university will be responsible for virtually no up-front costs in the deal, which is described in a Kaplan corporate filing. It will pay $1 to Graham Holdings, the for-profit chain’s parent company, for more than 100 academic programs, ranging from certificates to doctoral degrees.

The acquisition drew praise from some experts, who called it bold and exciting. Others, however, were worried about Purdue taking on the baggage of a for-profit chain that has in the past been criticized for student recruiting and the value of its credentials.

Caroline Cournoyer is GOVERNING's senior web editor.
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