Kaplan University
| Company type | Private, for-profit university |
|---|---|
| Industry | Higher education |
| Predecessor | American Institute of Commerce |
| Founded | 1937 in Davenport, Iowa, United States |
| Founder | Stanley H. Kaplan (name origin) |
| Defunct | 2018 |
| Fate | Acquired by Purdue University; rebranded as Purdue University Global |
| Headquarters | Chicago , United States |
Area served | United States |
| Owner | Kaplan, Inc. (subsidiary of Graham Holdings Company until 2018) |
| Parent | Kaplan, Inc. (until 2018) |
Kaplan University (abbreviated as KU) was a private, online institution operating as a for-profit university, owned by Kaplan, Inc., a subsidiary under Graham Holdings Company. Its primary mode of instruction was distance education, complemented by 14 physical campuses scattered throughout the United States. The university took its name from Stanley H. Kaplan, the founder of Kaplan Test Prep. While it held regional accreditation from the Higher Learning Commission, certain programs did not possess the specialized accreditation necessary for some professional certifications.
In 2017, ownership of Kaplan University transferred to Purdue University for a nominal sum of $1, resulting in its transformation into a nonprofit online institution now known as Purdue University Global. This acquisition was designed to capitalize on Purdue’s established reputation and broaden its presence in online higher education. The transaction was publicly announced in April 2017 and officially completed by March 2018.
History
Established in 1937 in Davenport, Iowa as the American Institute of Commerce (AIC), the institution originally focused on workforce training. In 1999, AIC received a grant from the U.S. Department of Education to develop online course offerings. Around this period, AIC along with four other Iowa colleges were acquired by Quest College and collectively rebranded under Quest Education Corporation. In November 2000, Kaplan, Inc. acquired these institutions and renamed them Kaplan College.
By September 2004, Kaplan, Inc. reorganized its educational programs by creating Kaplan University to deliver online bachelor's and graduate degrees, while maintaining Kaplan College for traditional classroom-based vocational training emphasizing associate degrees and certificates. In 2015, all 38 Kaplan College campuses were sold to Education Corporation of America, after which Kaplan College was rebranded as Brightwood College.
In October 2007, seven campuses formerly part of Hamilton College in Iowa and Nebraska were integrated into Kaplan University, thereby extending its regional reach. That same year, Concord Law School, founded in 1998 as the first fully online law school in the United States, merged with Kaplan University and became Concord Law School of Kaplan University. Although it lacked accreditation from the American Bar Association (ABA), Concord graduates are eligible to take the California bar examination and practice law upon passing.
2017 purchase by Purdue University
Following a prolonged period of declining enrollment, ownership of Kaplan University was transferred by Graham Holdings to the Purdue University system for one dollar in March 2018. Purdue subsequently rebranded the institution as Purdue University Global and entered into an exclusive contract with Kaplan, Inc. to provide nonacademic services for a term of 30 years, including an option for Purdue to buy out this arrangement after six years. Under this agreement, Kaplan assumed responsibility for liabilities incurred prior to the sale and receives 12.5% of revenue generated after covering operating expenses and guaranteed payments owed to Purdue.
Offerings and admissions
With its administrative headquarters located in Chicago and its principal campus situated in Davenport, Iowa, Kaplan University held accreditation from the Higher Learning Commission. At the time of acquisition, it enrolled approximately 33,000 students—of whom about 75% were female, 60% were aged over 30 years, and roughly one-quarter had military affiliations—with more than half representing first-generation college students.
The university operated under an open admissions policy and enabled eligible students to access Pell grants along with federal student loan programs. It also provided discounted tuition rates and awarded academic credit for military training to service members, reflecting its focus on serving nontraditional learners and those connected to the military community.
Academics
Kaplan University was structured into eight distinct schools, each focusing on essential disciplines such as Business and Information Technology, Concord Law School, Education, Health Sciences, Nursing, Open College, Professional and Continuing Education, and Social and Behavioral Sciences.
Annually, the institution conferred more than 12,000 degrees and certificates. Over 40% of the faculty possessed doctoral degrees. Numerous programs offered competency-based education, enabling students to earn academic credits by demonstrating expertise acquired through professional experience or military training.
In 2006, the School of Nursing at Kaplan achieved national accreditation for its Bachelor of Science in Nursing program from the Commission on Collegiate Nursing Education (CCNE). Subsequently, in 2016, the school secured further CCNE accreditation for its graduate-level nursing programs, including master's and doctoral degrees. Additional schools also received specialized accreditations; notably, the School of Business obtained accreditation from the Accreditation Council for Business Schools and Programs (ACBSP) in 2013.
These endorsements strengthened Kaplan University's competitive standing by affirming the quality and credibility of its educational offerings within the online learning sector.
Learning science research
Kaplan University utilized its diverse population of at-risk students to perform instructional research aimed at improving its online curriculum. Partnerships with researchers from Harvard and Stanford demonstrated that the digital learning environment facilitated enhanced evaluation of educational outcomes and teaching strategies.
False Claims Act lawsuit
On August 17, 2011, rulings were issued by the U.S. District Court for the Southern District of Florida concerning three related False Claims Act lawsuits brought by former Kaplan employees Wilcox, Gillespie, and Diaz. Wilcox's allegations were entirely dismissed; he was subsequently convicted separately for threatening Kaplan personnel. Gillespie's suit was partially dismissed, with summary judgment granted in favor of Kaplan on remaining counts by July 2013. The appellate court upheld dismissal of Gillespie's claims in 2015.
Diaz’s False Claims Act allegations were dismissed, and Kaplan secured summary judgment on his remaining employment-related claim in 2012, along with an award of costs due to frivolous claims. On appeal, most of Diaz’s claims were affirmed as dismissed; however, one claim involving incentive compensation linked to enrollment was remanded. Kaplan filed a response to this remanded claim, leading to further summary judgment proceedings.
On July 7, 2011, a Nevada federal court dismissed a False Claims Act case filed by former employee Charles Jajdelski, who accused Kaplan of receiving funds for "phantom students." The government opted not to intervene. The Ninth Circuit partially reversed this dismissal concerning a Title IV funding issue related to attendance but ultimately granted summary judgment favoring Kaplan in 2015. This decision was upheld by a Ninth Circuit panel in 2017.
These legal proceedings underscore intense scrutiny over Kaplan’s adherence to federal funding regulations but have not resulted in any adverse judgments against the institution.
Degree legitimacy and financial burden
In 2010, Kaplan along with other for-profit educational institutions came under examination by the U.S. Congress due to worries regarding student loan burdens and the market value of their qualifications. A significant portion of this attention targeted Kaplan College offerings, which have subsequently been distinguished from Kaplan University. Despite the critiques, Senator Tom Harkin, who led the investigative panel, recognized Kaplan Inc.'s initiatives to reduce withdrawal and loan default rates via its Kaplan Commitment program, emphasizing a forward-thinking element within its corporate approach.