According to a research paper published on Texas Community Colleges, “the first community colleges in Texas were called ‘junior colleges;’” Tuttle. Dallas Baptist College was introduced as the first supported ‘junior college’ and offered a “church sponsored, two-year educational program that was similar to what was offered as standard in the first two-years of a four-year university program;” Tuttle.
In 1969, the “Texas Higher Education Coordinating Board took controlling interest in ‘junior colleges;’ and expanded their breadth in curriculum;” Texas Constitution and Statutes, Sec. 130.001. Students that attended junior colleges could reduce educational costs as the main goal of attending a ‘junior college’ was to obtain transferable credits for attendance in four-year college / university programs. By the 1970s, term of ‘junior college’ was renamed to ‘community college’ and “later ‘vocational education’ was offered as an alternative to basic college curriculum;” Texas Constitution and Statutes, Sec. 130.0011.
THE ADVENT OF EDUCATION FOR-PROFIT
In 1976, a competitor to community colleges came about which offered “an evening MBA program for ‘working adults.’” Initially known to issue educational certificates in 1973, “Keller Graduate School of Management was acknowledged as fully accredited by the North Central Association of Colleges and Schools (NCA) in 1977, becoming the first for-profit school to be accredited by the association;” Wikipedia.
In 1987, Bell & Howell Company, headquartered in Wheeling, Illinois; sold DeVry Inc. to Keller Graduate School of Management, which merged and expanded its educational programs as DeVry Inc. DeVry Inc. was bought by Bell & Howell Company in 1961 and originally named De Forest Training School by its founder Dr. Herman A. DeVry. Herman Adolf DeVry was an “inventor and aviator; known for creating the first portable motion picture projector;” Wikipedia. Lee de Forest was recognized as “‘the inventor of regeneration’ and a colleague of Dr. Herman A. DeVry;” Wikipedia. The educational institution was renamed DeVry Institute of Technology in 1968-1969.
Historically, DeVry Institute of Technology was approved to issue associate and bachelor’s degrees in electronics in 1970; having earned its accreditation through the Technology Accreditation Commission (TAC); which was part of the Accreditation Board for Engineering and Technology (ABET). It is recorded as “a ‘fully accredited’ degree granting institution in 1981;” Higher Learning Commission.
In 1991, DeVry Inc., went public, offering formerly privately held stock in an initial public offer (IPO) and by 1995, DeVry Inc. stock was officially trading on the New York Stock Exchange.
SEC FORM 8-K
DATE: 1996-08-23; PERIOD OF REPORT: 1996-08-22;
SEC ACCESSION NO. 0000730464-96-000008
• SUMMARY
DeVry Inc. (the Company) is a holding company which, through its wholly owned subsidiaries, operates a national system of degree granting, career-oriented higher-education schools and a leading international training firm. Keller Graduate School of Management, Inc. (KGSM), is one of the largest regionally accredited higher education systems in North America. Its DeVry Institutes award associate and bachelor’s degrees in electronics, computer information systems, business operations, accounting, technical management, and telecommunications management.
• REVENUE RECOGNITION TUITION
Revenue and provisions for refunds and uncollectible accounts are recognized ratably over each of the academic terms in a fiscal year. The provisions for refunds and uncollectible accounts are included in the cost of educational services in the Consolidated Statements of Income. Related reserves are $6,603,000 and $5,368,000 on June 30, 1996, and 1995, respectively. Textbook sales and other educational revenues are recognized when they occur. Revenue from training services is recognized when the training is provided.
• PERKINS PROGRAM FUND
DeVry Inc. (the Company) makes contributions to the Perkins Student Loan Fund at a rate equal to 33% of that contributed by the federal government. As previous borrowers repay their Perkins loans, their payments are used to fund new loans thus creating a permanent revolving loan fund. The Company carries its investment in such contributions at original values net of allowances for losses on loan collections of $1,547,000 and $1,275,000 on June 30, 1996, and 1995, respectively.