Last week we blogged about the student loan scandal, how some schools–especially for-profit institutions–are sucking in billions of taxpayer dollars from federal student loans, even though the majority of their students can never pay them back. One of the biggest offenders is Kaplan, which was caught advising students to apply for loans they didn’t even qualify for. Kaplan is owned by the Washington Post.
The newspaper has admitted that fact in its stories about the scandals. On Sunday the ombudsman Andrew Alexander responded to reader complaints about conflicts of interest when the paper covers stories involving its corporate holdings. Alexander thinks everything is all right as long as the paper is transparent about its financial ties. In his defense of the paper, he let drop a remarkable detail:
But disclosure of The Post Co.’s ownership of Kaplan is especially critical because of Kaplan’s outsize importance to the overall bottom line. The Kaplan division, which offers higher education, test preparation and professional training services, accounted for 62 percent of The Post Co.’s total second-quarter revenues. Its higher education unit, the subject of government scrutiny and proposed regulations, will be in the news for months to come.