National American University

National American University (NAU) is an online, accredited, for-profit university with locations at Ellsworth Air Force Base, Joint Base Charleston, and Naval Submarine Base King's Bay. NAU is owned by National American University Holdings, Inc. The university is headquartered in Rapid City, South Dakota. Henley-Putnam School of Strategic Security (formerly Henley Putnam University) is a part of National American University.[1]

National American University
National American University seal - gold.png
MottoQuality higher education in a caring and supportive environment.
TypeFor-profit college (NASDAQ: NAUH)
Established1941
PresidentRonald L. Shape (CEO)
Location
ColorsRoyal Blue and White
Websitewww.national.edu

National American University is organized into three academic divisions: College of Business, Technology, and Health Management; Henley-Putnam School of Strategic Security; and Harold D. Buckingham Graduate School. Over 100 associate degree, bachelor’s degree, master's, doctoral, and certificate programs are offered. Most of NAU’s academic programs are on the 11-week quarter system.

National American University is accredited by the Higher Learning Commission.

NAUH is facing major financial challenges, and the company has laid off numerous workers, amounting to a $1.5 million cut in yearly payroll costs. [2] On January 22, 2019, NAUH announced that "the Company had $0.5 million of unrestricted cash and cash equivalents and a working capital deficiency of $8.7 million. These factors, among others, raise substantial doubt regarding the Company’s ability to continue as a going concern."[3][4]

HistoryEdit

National American University is currently under extreme financial stress and it is closing most of its campuses. [5] In SEC reports, the parent company, National American University Holdings, has stated that it may not survive 2019.[4] According to Education Dive, an industry publication, this would affect more than 1,000 workers. [6]

Origins and growth (1941-2012)Edit

National American University was established in 1941 as a one-year secretarial school by Clarence Jacobson. It was called National College of Business (NCB) and was located in a downtown Rapid City building. In 1960, Jacobson had the building that now houses administration for the Rapid City campus constructed at 321 Kansas City Street and moved National College to that location.

In 1962, NCB was acquired by Harold D. Buckingham and members of his family. Shortly after the Buckinghams purchased the school, a period of growth began which led to the construction of the classroom buildings, dormitories, a library, gymnasium, and an auditorium.

NCB was granted collegiate accreditation as a junior college by the Accrediting Commission of the Association of Independent Colleges and Schools in 1966. Senior college accreditation was granted in 1970.

The 1970s brought growth, with the addition of several branch locations in the Midwest and Rocky Mountain regions. This trend toward reaching out to other communities resumed in the 90s with the addition of more campuses nationwide.

In 1985, NCB earned accreditation by the North Central Association of Colleges and Schools (now called the Higher Learning Commission).

The university began offering online classes in 1996.

In 1997 National College of Business became National American University.

In 2009, National American University became part of National American University Holdings, a publicly traded corporation.

In 2012, the main Rapid City location was moved to Mount Rushmore Rd., south of Rapid City, which also houses the university's central administration offices.

Decline (2012-present)Edit

In 2017, National American University purchased Henley-Putnam School of Strategic Security. [7]

In 2018, Robert Gravely, a former NAU official, filed a lawsuit alleging that the school defrauded the United States government out of millions of dollars in a student aid program, unlawfully paid bonuses to university employees for recruiting students and rigged the accreditation for its medical assisting program. [8] NAUH also mortgaged real property for $8 million in loans. [9] In 2018, more campus closings were also planned. [10]

In September 2018, the Rapid City Journal detailed NAUH's declining enrollment and financial difficulties. [11] On September 28, 2018, NAUH received a delisting warning from NASDAQ.[12]

On December 28, 2018, the NAUH Board agreed to voluntarily delist from the NASDAQ. [13]

On January 22, 2019, NAUH announced that "the Company had $0.5 million of unrestricted cash and cash equivalents and a working capital deficiency of $8.7 million. These factors, among others, raise substantial doubt regarding the Company’s ability to continue as a going concern."[4]

On February 15, 2019, NAUH announced Thomas Bickart as their new Chief Financial Officer. Mr. Bickart was CFO at TCI College of Technology from 2013 to 2016 and later worked at EdisonLearning, Inc. to restructure its operations.

On March 16, 2019, National American University announced that most of its 24 ground campuses would be closed, except for Ellsworth Air Force Base and King's Bay Naval Submarine Base.[14][5][15]

On March 31, 2019, National American University granted honorary doctorates to several people in India, including Astrologer Dr Sohini Sastri. [16]

On April 15, 2019, National American University reported that they must post a letter of credit for either 50% ($36.7 million) or 15% ($11 million) of its Title IV awards in order to continue participating in the program. [17][18]

The operation faced further pressure with an $800,000 debt payment due May 17, 2019, and an ongoing federal False Claims lawsuit.[2][11]

On May 10, 2019, NAUH received an $8.5 million loan from the Center for Excellence in Higher Education. The loan was set at a 7 percent interest rate with a $250,000 origination fee. [19]

On May 24, 2019, Inside Higher Education reported that students at National American University had been surprised that campuses were closing. [20]

On May 29, 2019, Rapid City reported that the city would purchase a portion of the Rapid City campus for a homeless resource center. [21][22]

In June 2019, two students in the Kansas City area sued the school for allegedly making false claims about educational quality and gainful employment after graduation. [23]

AcademicsEdit

EnrollmentEdit

Total student enrollment has declined from 9,519 students in 2015 to 3,398 students in February 2019. [17] In March 2019, National American University announced that it was closing most of its remaining 24 campuses, including its campuses in Rapid City [5] and Sioux Falls.[14] and is now an online university.

ProgramsEdit

National American University offers Bachelor of Science degrees, Associate of Applied Science degrees, and diplomas in accounting, management, business administration, allied health, criminal justice, healthcare management, health and beauty management, and information technology. In August 2008, NAU's graduate studies program was renamed the Harold D. Buckingham Graduate School, in honor of the late owner. Graduate degree programs include an M.B.A., a Master of Management degree, an Ed.D in Community College Leadership, and Master and Doctoral degrees in Strategic Security, Terrorism and Counterterrorism Studies, and Intelligence Management.

Distance learningEdit

In 1996 National American University began to develop online courses and degree options for students across the United States and internationally. Online programs include associate’s, bachelor's and master's degrees in accounting, business, information technology, strategic security, and health care. Students are also provided access to classes and extensive campus resources including learning resource center services, tutoring services, counseling services, and computer support through a student portal.

In 2012, 53 percent of NAU's students were studying online, with an additional 17 percent taking some classes online.[24] In 2018, 77 percent of NAU's students were studying online, with an additional 12 percent taking some classes online.[25]

AccreditationEdit

NAU is regionally accredited by the Higher Learning Commission.[26] Several NAU programs are separately accredited by multiple national, educational and professional associations. NAU's baccalaureate and master's degree programs in nursing are also accredited by the Commission on Collegiate Nursing Education [27]

LocationsEdit

Remaining LocationsEdit

  • Online
  • Henley-Putnam School of Strategic Security

*Georgia

  • Kings Bay Naval Base

*South Carolina

  • Joint Base Charleston

*South Dakota

  • Ellsworth Air Force Base

Closed CampusesEdit

Colorado

  • Centennial (Denver Metro)
  • Colorado Springs (North)
  • Colorado Springs (South)

Indiana

  • Indianapolis

Kansas

  • Garden City
  • Overland Park
  • Wichita (East)
  • Wichita (West)

Minnesota

  • Bloomington
  • Brooklyn Center
  • Burnsville
  • Rochester
  • Roseville

Missouri

  • Independence
  • Lee's Summit
  • Zona Rosa (Kansas City)

Nebraska

  • Bellevue

New Mexico

  • Albuquerque (East)
  • Albuquerque (West)

Oklahoma

  • Tulsa

South Dakota

  • Rapid City
  • Sioux Falls
  • Watertown

Texas

  • Austin
  • Georgetown
  • Houston
  • Killeen
  • Lewisville
  • Mesquite
  • Richardson

Student OutcomesEdit

According to the College Scorecard, NAU students have a median income of $34,800 after attending. The graduation rate is 17 percent. The student loan repayment rate is 24 percent. [28]

National American University Holdings, IncEdit

National American University Holdings, Inc., was a publicly traded corporation (NASDAQ: NAUH) holding company for NAU and other assets. The corporation was established in 2009 and is located in Rapid City, South Dakota.[29]

ReferencesEdit

  1. ^ "National American University Holdings, Inc. Announces Closing of the Henley-Putnam University Transaction, Provides Update on Operational Consolidations Other OTC:NAUH". Globenewswire.com. 2018-03-22. Retrieved 2019-10-20.
  2. ^ a b Ben Unglesbee @Ben_Unglesbee (2019-02-26). "Will National American U's online pivot be enough to keep it alive?". Education Dive. Retrieved 2019-10-20.
  3. ^ "Blueprint". Sec.gov. Retrieved 2019-10-20.
  4. ^ a b c Ben Unglesbee @Ben_Unglesbee (2019-01-24). "For-profit National American U raises doubts about survival". Education Dive. Retrieved 2019-10-20.
  5. ^ a b c "NAU closing Rapid City, other campuses | Local". rapidcityjournal.com. Retrieved 2019-10-20.
  6. ^ Ben Unglesbee @Ben_Unglesbee (2019-02-26). "Will National American U's online pivot be enough to keep it alive?". Education Dive. Retrieved 2019-10-20.
  7. ^ "National American University Holdings, Inc. Announces Closing of the Henley-Putnam University Transaction, Provides Update on Operational Consolidations Other OTC:NAUH". Globenewswire.com. 2018-03-22. Retrieved 2019-10-20.
  8. ^ "National American University accused of defrauding federal student aid program". Argusleader.com. Retrieved 2019-10-20.
  9. ^ "Blueprint". Sec.gov. Retrieved 2019-10-20.
  10. ^ "Blueprint". Sec.gov. Retrieved 2019-10-20.
  11. ^ a b "National American University spells out challenges to investors as student enrollment declines | Local". rapidcityjournal.com. Retrieved 2019-10-20.
  12. ^ "Blueprint". Sec.gov. Retrieved 2019-10-20.
  13. ^ "Blueprint". Sec.gov. Retrieved 2019-10-20.
  14. ^ a b Published 3:18 p.m. CT March 25, 2019 (2019-03-25). "National American University in Sioux Falls to close as classes shift online". Argusleader.com. Retrieved 2019-10-20.
  15. ^ Associated Press March 26, 2019 — 7:20am (2019-03-26). "National American University transitions to online courses". StarTribune.com. Retrieved 2019-10-20.CS1 maint: multiple names: authors list (link)
  16. ^ ANI. "Dr. Sohini Sastri honoured with D. Litt | Business Standard News". Business-standard.com. Retrieved 2019-10-20.
  17. ^ a b Ben Unglesbee @Ben_Unglesbee (2019-04-16). "As National American U faces possible closure, Ed Dept tightens oversight". Education Dive. Retrieved 2019-10-20.
  18. ^ "National American University is latest for-profit chain to face financial turmoil". Insidehighered.com. 2019-04-26. Retrieved 2019-10-20.
  19. ^ "Blueprint". Sec.gov. Retrieved 2019-10-20.
  20. ^ Kreighbaum, Andrew (2019-05-24). "National American Students Surprised by Closures". Insidehighered.com. Retrieved 2019-10-20.
  21. ^ "Purchase of former NAU campus OK'd by city committee | Local". rapidcityjournal.com. Retrieved 2019-10-20.
  22. ^ "OneHeart to transform former National American University campus". www.newscenter1.tv. Retrieved 2 July 2019.
  23. ^ [1][dead link]
  24. ^ "For Profit Higher Education: The Failure to Safeguard the Federal Investment and Ensure Student Success". U.S. Senate Committee on Health, Education, Labor, and Pensions. pp. 671–692. Archived from the original (PDF) on 29 July 2012. Retrieved 9 August 2012.
  25. ^ "Blueprint". Sec.gov. Retrieved 2019-10-20.
  26. ^ "Higher Learning Commission".
  27. ^ "Home". 9 September 2016.
  28. ^ [2][dead link]
  29. ^ "National American University Holdings Inc".

External linksEdit