Washington Post 2014 Annual Report Download - page 27

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that had been made and with the information reviewed. The UKVI has now taken over the UKBA’s responsibilities for
international student immigration. The UKBA also confirmed that its compliance review was complete. Kaplan UK, therefore,
has continued to meet the UKVI requirements throughout 2014.
With respect to KIC’s businesses in the U.K., the pathways group of colleges continues to retain HTS status and Educational
Oversight accreditation, and all gained the status of “commendable progress” in the Quality Assurance Agency Educational
Oversight Annual Monitoring. All of the English-language schools have HTS status and have completed annual monitoring
achieving “exceeded expectations” from the Independent Schools Inspectorate. One of the most recent embedded pathways
colleges within the University of West of England, which is currently under the host university’s Tier 4 sponsor license and
HTS status, obtained Educational Oversight in 2014. The pathway college at the University of Brighton now issues its own
CAS as a branch of KICL and will be able to apply for HTS status in March 2015 under now-current Tier 4 sponsor
guidance. KIC was the first multiple group to undergo and achieve educational oversight in April 2012. KIC has continued
to maintain a favorable track record in its HTS renewals, maintaining high scores in the core measurable requirements. Ten
of the colleges completed their HTS renewals in summer 2013. Two colleges submitted their applications for renewal, but
have not yet received the results of their applications because of processing delays at the UKVI. Three other colleges will
undergo their HTS renewals in February 2014 and have met core HTS measurable requirements. All Tier 4 licenses were
granted with expiry in 2017.
Changes continue to be made to U.K. immigration rules. The UKVI continues to tighten the regulations around sponsoring
students from outside the EEA and Switzerland. Changes over the past three years have included the introduction of a rule
that restricts to five years the time a sponsored student can spend studying at or above degree level in the U.K. The post-
study work visa, which permitted postgraduate students to work in the U.K. without being sponsored, was closed to new
applicants. In addition, sponsored students who do not attend an institution that qualifies as a Higher Educational
Institution (HEI), which includes students attending Kaplan UK’s colleges, are no longer permitted to work part time while
studying. In 2013, the biggest change was the introduction of a new screening process called a “Credibility Check” for
potential students. This interview process can affect the number of visa refusals Kaplan International’s businesses receive,
which is a risk factor for loss of the relevant license. However, Kaplan International has not experienced a significant
increase in visa refusals. Since the introduction of the Points-Based System in 2009, all Tier 4 students are subject to strict
checks pre and post arrival, including verification that their qualifications are genuine, confirmation that the students
maintain a good attendance record and that they can be contacted at all times, and verification that they have academic
progression and that their visa is valid at all times while they are present in the U.K. Failure to meet these requirements
obliges Kaplan International to withdraw sponsorship and report these students to the UKVI. In 2014, there were
additional changes to the UKVI rules, including a significant tightening of the core measurable in respect of visa refusals.
Effective November 1, 2014, no more than 10% of the students to whom a CAS is issued by an HTS sponsor can have
their visa refused. Formerly, the limit was set at 20%. This may impact KI’s language schools, which sometimes exceed the
10% limit, given the very small number of CASs issued by these schools. However, the UKVI has also given itself the
ability to exercise special discretion for any HTS sponsors who issue 50 or fewer CASs. Each of the potentially affected
schools issues fewer than 50 CASs per year. In addition, in 2014, further restrictions were placed on approved Secure
English Language Tests whereby students are no longer permitted to submit either the TOEFL or TOEIC qualifications.
Academic service providers are required to have rigorous processes to verify all English language test certificates. The
introduction of revised immigration rules has negatively impacted Kaplan UK’s enrollment rate in relation to students from
outside the EEA and Switzerland.
No assurance can be given that each Kaplan International business in the U.K. will be able to maintain its HTS status and
Educational Oversight accreditation. Maintenance of each of these approvals requires compliance with several core
metrics that may be difficult to attain. Loss of either HTS status or Educational Oversight accreditation would have a
material adverse effect on Kaplan Europe’s operating results.
Asia Pacific. In the Asia Pacific region, Kaplan operates businesses primarily in Singapore, Australia, New Zealand,
Hong Kong and China.
In Singapore, Kaplan operates three business units: Kaplan Higher Education, Kaplan Financial and Kaplan Professional.
During 2014, the Higher Education and Financial divisions served more than 20,000 students from Singapore and
4,000 students from other countries throughout Asia and Western Europe. Kaplan Professional provided short courses to
approximately 19,000 professionals, managers, executives and businesspeople in 2014.
Kaplan Singapore’s Higher Education business provides students with the opportunity to earn bachelor’s and
postgraduate degrees in various fields on either a part-time or full-time basis. Kaplan Singapore’s students receive degrees
from affiliated educational institutions in Australia and the U.K. In addition, this division offers pre-university and diploma
programs.
2014 FORM 10-K 11