YOU TAKE THE TEST

When the Washington Post Company acquired a chain of for-profit schools in 2000, the move transformed its sleepy Kaplan test-prep division into a multi-billion-dollar for-profit education juggernaut. But did its growth come at the expense of financially naïve students and federal taxpayers? Below is a quiz on the student-loan scandal that has engulfed the company. Open your books, now

1

Kaplan recently found itself in hot water after a government sting caught employees_students _loans they couldn't afford.

IZ A zi discouraging ... from accepting

IZ B zi advising ... not to load up on

IZ C zi warning ... to be prudent about

IZ D zi persuading ... to incur

2

"It's all about uncovering their pain and fears. Once they are reminded of how bad things are, this will create a sense of urgency to make change." This quotation comes from which of the following works:

IZ A Zl Mein Kampf.

iz B z Das /Capital,

iz c z The Will to Power.

iz D z A guide for Kaplan University recruitment officers.

3

According to a 2008 Department of Education study, which of the following for-profit schools had the highest two-year default rate on loans?

IZ A zi American Indian College of the Assemblies of God.

iz B z Razzle Dazzle College of Hair Design,

iz C z Thunderbird School of Global Management,

iz D z Kaplan University.

4

What did one Kaplan recruiter tell a prospective student who voiced concern about the ability to repay loans?

IZ A z "That is a valid concern."

iz B z "Be careful—debt is a very difficult hole to claw your way out of."

Z C Z "Neither a borrower nor a lender be—but especially not a borrower."

iz D z "I look at life as 'Tomorrow's never promised.'"

5

In 2005, as questions began to swirl about the for-profit education industry's standards and recruiting practices, what did the Department of Education decide to do with then Kaplan C.E.O. Jonathan Grayer?

Z A z Investigate his company's questionable practices.

Z B z Warn him to either shape up or ship out.

z c z Brand him Public Education Enemy No. 1.

z D z Name him to its Commission on the Future of Higher Education.

6

When Grayer resigned as C.E.O. of Kaplan, in 2008—to focus on "entrepreneurial activity, investment, and philanthropy"—what did he take with him?

z A z A Kaplan test-prep book,

z B z A hangover from the going-away party,

z c z His ficus plant,

z D z A $76 million golden parachute.

7

In an interview last year withThe Washington Post,Post Company C.E.O. Don Graham defended Kaplan's business practices and likened his role to which storied episode from the paper's past?

z A z Defending the Post while it pursued the Watergate scandal,

z B z Defending the Post after it printed the Pentagon Papers.

z C z Trying to decide who was funnier, Herblock or Art Buchwald.

z D z A and B.

8

In the same interview, how did Graham characterize the problems at Kaplan?

z A z A deep-seated flaw in the corporate culture.

z B z A travesty and an embarrassment,

z C z A stain on the entire American system of higher education,

z D z The product of a few bad apples.

9

By the close of 2010, approximately how much of the Washington Post Company's revenue came from the U.S. government, via Kaplan, in the form of federal student loans?

Z A Z None,

z B z 5 percent.

Z C Z 10 percent,

z D z 30 percent.

10

Between 2003 and 2008, how were executives at Kaplan compensated?

z A z Benefits with great dental,

z B z Applebee's gift certificates,

z C z Generous but essentially market-rate salaries in the low to mid six figures.

Z D Z A quarter of a billion dollars in stock-option payouts.

STOP.

-JACK DELIGTER

CORRECT ANSWERS: IN EVERY CASE, D. IN THE ANSWER CHOICES TO QUESTION 3, EY THE WAY ALL THE SCHOOLS ARE REAL, EVEN THE RAZZLE DAZZLE COLLEGE OF HAIR DESIGN, WHICH IS LOCATED IN NAMPA, IDAHO.