Washington Post 2005 Annual Report Download - page 30

enrolled at Concord. Concord is accredited by the Accrediting Commission of the Distance Education and Training Council
and has received operating approval from the California Bureau of Private Post-Secondary and Vocational Education.
Concord also has complied with the registration requirements of the State Bar of California; graduates are, therefore, able
to apply for admission to the California Bar. The College for Professional Studies, which had approximately 300 students
enrolled at year-end 2005, offers bachelor and associate degree and diploma correspondence programs in the fields of
legal nurse consulting, paralegal studies and criminal justice; however, that school is no longer enrolling students and will
discontinue operations at the end of 2006.
Dublin Business School (""DBS'') is an undergraduate and graduate institution located in Dublin, Ireland, with a satellite
location in Kuala Lumpur, Malaysia. DBS offers various undergraduate and graduate degree programs in business and the
liberal arts. At year-end 2005, DBS was providing courses to approximately 4,000 students.
In May 2005 Kaplan acquired Asia Pacific Management Institute (""APMI''), which is headquartered in Singapore and
has a satellite location in Hong Kong. APMI provides students with the opportunity to earn undergraduate and graduate
degrees, principally in business-related subjects, offered by affiliated educational institutions in Australia, the United
Kingdom and the United States. APMI had more than 3,000 students enrolled at year-end 2005.
Kaplan acquired Holborn College in November 2005. Holborn is located in London and offers various pre-university,
undergraduate, post-graduate and professional programs, primarily in law and business, with its students receiving
degrees from affiliated universities in the United Kingdom. Most of Holborn's students come from outside the United King-
dom and the European Union. At year-end 2005, Holborn was providing courses to approximately 1,500 students.
One of the ways a foreign national wishing to enter the United States to study may do so is to obtain an F-1 student visa.
For many years, most of Kaplan's Test Preparation and Admissions Division centers in the United States have been
authorized by what is now the U.S. Citizenship and Immigration Services (the ""USCIS'') to issue certificates of eligibility to
prospective students to assist them in applying for F-1 visas through a U.S. Embassy or Consulate. Under an administrative
program that became effective early in 2003, educational institutions are required to report electronically to the USCIS
specified enrollment, departure and other information about the F-1 students to whom they have issued certificates of
eligibility. Kaplan has certified 137 of its U.S. Test Preparation and Admissions Division centers to participate in this
program. Once certified, a center must apply for recertification every two years. During 2005 students holding F-1 visas
accounted for approximately 2.1% of the enrollment at Kaplan's Test Preparation and Admissions Division and an
insignificant number of students at Kaplan's Higher Education Division.
Title IV Federal Student Financial Aid Programs
Funds provided under the student financial aid programs that have been created under Title IV of the Higher Education Act
of 1965, as amended, historically have been responsible for a majority of the net revenues of the schools in Kaplan's
Higher Education Division accounting, for example, for slightly more than $500 million of the revenues of such schools for
the Company's 2005 fiscal year. The significant role of Title IV funding in the operations of these schools is expected
to continue.
Title IV programs encompass various forms of student loans with the funds being provided either by the federal government
itself or by private financial institutions with a federal guaranty protecting the institutions against the risk of default. In some
cases the federal government pays part of the interest expense. Other Title IV programs offer non-repayable grants.
Subsidized loans and grants are only available to students who can demonstrate financial need. During 2005
approximately 70% of the Title IV funds received by the schools in Kaplan's Higher Education Division came from student
loans and approximately 30% of such funds came from grants.
To maintain Title IV eligibility a school must comply with extensive statutory and regulatory requirements relating to its
financial aid management, educational programs, financial strength, recruiting practices and various other matters. Among
other things, the school must be licensed or otherwise authorized to offer its educational programs by the appropriate
governmental body in the state or states in which it is located, be accredited by an accrediting agency recognized by the
U.S. Department of Education (the ""Department of Education''), and enter into a program participation agreement with
the Department of Education.
A school may lose its eligibility to participate in Title IV programs if student defaults on the repayment of Title IV loans
exceed specified default rates (referred to as ""cohort default rates''). A school whose cohort default rate exceeds 40%
for any single year may have its eligibility to participate in Title IV programs limited, suspended or terminated at the
discretion of the Department of Education. A school whose cohort default rate equals or exceeds 25% for three
consecutive years will automatically lose its Title IV eligibility for at least two years unless the school can demonstrate
14 THE WASHINGTON POST COMPANY