Bay State College

Bay State College
TypePrivate for-profit college
Active1946–2023
AccreditationNECHE
Students215
Location
Boston
,
Massachusetts
,
United States
CampusUrban, 1.50 acres (0.61 ha)
ColorsRed and White
  
Websitebaystate.edu

Bay State College (Bay State or BSC) was a private for-profit college[1] in the Back Bay neighborhood of Boston, Massachusetts. It was founded in 1946 and was accredited by the New England Commission of Higher Education. In 2021, after several years of financial challenges and claims of fraud, the accreditor began to issue formal warnings and demand further information from the college; it closed two years later.[2]

Bay State College specialized in business, information technology, and healthcare. The college offered associate and bachelor's degree programs.[3] The college had three divisions: Day, Evening and Online. It had an additional campus in Taunton, Massachusetts.[4] At the time of its closure, it was owned by Ambow Education Holding Ltd. of the Cayman Islands and Beijing, People's Republic of China.[5]

History

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Bay State College opened in 1946 to serve the airline industry by providing "hands-on skills and paying particular attention to a strong educational foundation." One of its founders, George J. Brennan, was a Marine fighter pilot in World War II.[6] The original location was at 70 State Street in Boston.[7]

Bay State moved to Back Bay in 1961.[7]

Bay State College, Boston MA. The campus was sold in 2017.

In 1975, Bay State College was initially authorized to grant associate degrees by the Commonwealth of Massachusetts.

Pfannenstiel Family (1988-2017)

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In 1988, the original owners sold the school to Thomas E. Langford and Frederick G. Pfannenstiehl.[8] Pfannenstiehl was president and owner of Educor Inc. and president of Burdett College as well as Bay State College.[9] The Pfannenstiehl family also owned Harrison College in Indiana.[10]

In 1989, Bay State became accredited by the New England Commission of Higher Education (NECHE, formerly NEASC).

In 2004, Bay State College was authorized by the state and NECHE to grant bachelor's degrees in business, Fashion, and Entertainment Management.[7]

In 2013, BSC relocated its Middleboro campus to Taunton, Massachusetts.[11]

Bay State College as a subsidiary of Ambow Education Holding (2017-present)

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On September 29, 2017, the Commission on Institutions of Higher Education of the New England Association of Schools and Colleges approved the sale of Bay State College to Ambow Education Holding Ltd.[12] Ambow acquired the school with a $6 million loan from Sino Accord Investments Limited.[13]

In 2019, BSC moved its offices to 31 St. James Avenue in the Park Square Building. In the same year, BSC settled with the Massachusetts Attorney General for $1.1 million over allegations it was using false claims in their marketing and failing to comply with the state's for-profit college regulations.[14]

In 2020, during the COVID-19 pandemic, Anbow Education and Bay State College received a $1.47 million federal PPP loan through the Bank of America and an additional $794,000 in CARES Act-HEERF funding.[15][16] The following year, the Small Business Administration fully forgave the outstanding principal of the PPP loan.[13]

During the pandemic, Bay State College also began working with Cisco to provide contact tracing. According to BSC, "faculty, staff, and students were each issued a lanyard and a badge holder containing a Bluetooth Low-Energy (BLE) beacon, which they were required to wear visibly at all times while on campus."[17][18]

The college was placed on probation by its accreditor, the New England Commission of Higher Education, in 2022, over concerns about its finances and governance.[19] Shortly after being placed on probation, the chief financial officer of the college's parent company resigned.[20] The college's enrollment had also dropped significantly, from a peak at more than 1200 students in 2010 to about 300 in 2022.[21]

In the fall of 2022, Bay State College's enrollment had dwindled to 215 students. In December 2022 the US Department of Education placed the school on Heightened Cash Monitoring.[22]

In January 2023, the Boston Globe reported that Bay State College was planning to eliminate most of its academic programs, maintaining only nursing and business.[23] On record with WGBH, Senator Elizabeth Warren stated:

"We've watched this pattern before with these for-profit colleges. They start showing all kinds of warning signs," Warren said, before ticking off some of Bay State's problems. "Their enrollment has dropped substantially. They are losing money. They have canceled classes. They haven't paid their rent." "It's time to put them under a lot more scrutiny so that students are not left holding the bag."[24]

In March 2023 Bay State College faced eviction after reportedly owing more than $720,000 in unpaid rent and fees.[25]

On May 11, 2023, the board of trustees of Bay State College voted to permanently close at the end of academic year 2022-23. [26]

Accreditation

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Bay State College was accredited by the New England Commission of Higher Education until its closure in 2023. The college was authorized to award Associate of Science, Associate of Applied Science, and Bachelor of Science degrees by the Commonwealth of Massachusetts: .[12]

Bay State College's Associate of Science program in Physical Therapist Assistant was accredited by the Commission on Accreditation in Physical Therapy Education (CAPTE).[12] Its Associate of Science in Nursing program was accredited by the Accreditation Commission for Education in Nursing (ACEN) and approved by the Massachusetts Board of Registration in Nursing.[12]

In April 2021, BSC's accreditor asked the college to "show cause why the College should not be placed on probation or have its accreditation withdrawn." NECHE "expressed concern about the College's ability to implement its plans to increase enrollment, enhance financial stability, and assure the sufficiency of appropriately qualified faculty and staff. The commission further noted the lack of robust systems to evaluate educational effectiveness and to use data for planning and institutional improvement."[27] A show cause hearing was held in November 2021, and on April 21, 2022, the commission voted to place Bay State College on probation because the college was not meeting standards on institutional resources and organization and governance.[28] Specifically, Bay State did not demonstrate that its resources are sufficient to sustain the quality of its educational programs and to support institutional improvement now and in the foreseeable future and that it has an effective system of governance and sufficient administrative capacity.[29] In January 2023, NECHE announced that it would withdraw Bay State's accreditation by August 31, 2023, a move that the college appealed.[30] Accreditation was withdrawn on August 31, 2023.

Faculty

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According to the US Department of Education's College Navigator, BSC had 7 full-time instructors and 85 part-time instructors.[31]

Finances

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In 2020, Bay State College had $6 million in assets and $4.1 million in liabilities.[32] While Bay State College had financial deficits, it cut costs to narrow those deficits, from $4.1 million in 2020 to a preliminary 2021 deficit of approximately $1.7 million. Its parent company, Ambow Education, provided additional funding when needed.[33]

Esports

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In 2018, Bay State College was the first college in Massachusetts to join the National Association of Collegiate Esports.[34] The esports team competed in Call of Duty, League of Legends, Fortnite, Overwatch, and Madden.[35][36] In 2022, the Super Smash contingent won the NACE National Championship over the University of Texas Austin.

Student outcomes

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Bay State College's overall graduation rate was 18 percent, with a transfer out rate of 24 percent.[31] According to the College Scorecard, median student loan debt is $25,813.[37] The nursing program had an average NCLEX-RN pass rate of 80.9 percent.[38]

Ambow Education Holding Ltd.

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Ambow Education Holding Ltd is a Cayman Islands and China-based corporation that also owns NewSchool of Architecture and Design. According to Ambow Education's financial reports, the People's Republic of China (PRC) government "exerts substantial influence" over their business.[39]

In 2013, Ambow was sued for "orchestrating a 'fake acquisition' to facilitate its initial public offering in the US" three years earlier.[40] Ambow liquidated its assets and reorganized the company.[41][42]

In 2017, Ambow acquired Bay State College and in 2020 it bought NewSchool of Architecture and Design.

In 2022, Ambow agreed to sell its Chinese assets to Clover Wealth Ltd. Xuejun Xie, a member of Ambow's Board, is listed as Clover Wealth's director in the purchase agreement.[43]

Ambow Education claims to have a number of US patents, including patents related to artificial intelligence and holographic technology.[44]

See also

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References

[edit]
  1. ^ "Governance". Archived from the original on May 26, 2017. Retrieved May 4, 2017.
  2. ^ Carapezza, Kirk (January 17, 2023). "Commission rescinds Bay State College's accreditation following claims of fraud". www.wgbh.org. WGBH. Archived from the original on January 17, 2023. Retrieved January 17, 2023.
  3. ^ "Bay State College Programs". Bay State College. Archived from the original on December 25, 2016. Retrieved May 7, 2020.
  4. ^ "Bay State College to Open New Campus in Taunton". Bay State College. Archived from the original on May 25, 2015. Retrieved May 7, 2020.
  5. ^ "Chinese company adds US college to higher-ed portfolio". www.chinadaily.com. China Daily. Archived from the original on May 7, 2022. Retrieved May 7, 2022.
  6. ^ "Bay State College founder, George J. Brennan, Jr. passes away at the age of 93". www.baystate.edu. Bay State College. Archived from the original on May 16, 2022. Retrieved May 16, 2022.
  7. ^ a b c "Bay State College History and Mission". Bay State College. Archived from the original on December 25, 2016. Retrieved May 7, 2020.
  8. ^ "Back Bay Houses:Genealogies of Back Bay Houses". backbayhouses.org. Back Bay Houses. July 17, 2013. Archived from the original on May 21, 2022. Retrieved May 18, 2022.
  9. ^ "Alumni Profile – Frederick G. Pfannenstiehl '59". www.rivers.org. RiversNet. September 3, 2002. Retrieved May 18, 2022.
  10. ^ "PFANNENSTIEHL v. PFANNENSTIEHL". caselaw.findlaw.com. Find Law. Archived from the original on May 18, 2022. Retrieved May 18, 2022.
  11. ^ "Bay State College to Open New Campus in Taunton". www.baystate.edu. Bay State College. Archived from the original on June 1, 2022. Retrieved May 16, 2022.
  12. ^ a b c d "Bay State College Accreditation". Bay State College. Archived from the original on December 25, 2016. Retrieved January 18, 2017.
  13. ^ a b "20-F". www.sec.gov. Securities and Exchange Commission. Archived from the original on May 7, 2022. Retrieved May 7, 2022.
  14. ^ Solis, Steph (December 27, 2019). "Bay State College pays $1.1 million settlement following allegations it misled students". www.masslive.com. Mass Live. Archived from the original on June 1, 2022. Retrieved May 7, 2022.
  15. ^ "PPP Loan Data — Bay State College Inc, Boston, MA". www.federalpay.org. Archived from the original on September 7, 2022. Retrieved May 9, 2022.
  16. ^ "HEERF Funds from the CARES Act". www.baystate.edu. Bay State College. Retrieved May 8, 2022.
  17. ^ Hudson, Andrew (December 18, 2020). "Bay State College uses HID Bluetooth beacons to support contact tracing". www.campusidnews.com. Campus News. Archived from the original on August 18, 2022. Retrieved May 9, 2022.
  18. ^ "Bay State College Helping students return safely to on-campus learning with automated contact tracing". meraki.cisco.com. Cisco. Archived from the original on June 1, 2022. Retrieved May 9, 2022.
  19. ^ "JOINT STATEMENT New England Commission of Higher Education and Bay State College" (PDF). New England Commission of Higher Education. June 1, 2022. Archived (PDF) from the original on November 22, 2022. Retrieved November 26, 2022.
  20. ^ Kail, Benjamin (September 20, 2022). "Bay State College parent's CFO resigns amid financial struggles". Boston Business Journal. Archived from the original on January 10, 2023. Retrieved November 26, 2022.
  21. ^ Carapezza, Kirk (September 6, 2022). "Massachusetts has a financial stress test for colleges. Students and advocates say it's not good enough". GBH. Archived from the original on November 27, 2022. Retrieved November 26, 2022.
  22. ^ Kail, Benjamin. "Bay State College cuts academic programs ahead of regulatory review". www.bizjournals.com. Boston Business Journal. Archived from the original on January 4, 2023. Retrieved January 4, 2023.
  23. ^ "Boston Globe:January 3rd, 2023:Metro:Bay State College faces uncertain future". The Boston Globe. Archived from the original on January 4, 2023. Retrieved January 4, 2023.
  24. ^ Carapezza, Kirk (January 4, 2023). "Federal officials monitoring for-profit Bay State College following claims of fraud". www.wgbh.org. WGBH. Archived from the original on January 4, 2023. Retrieved January 4, 2023.
  25. ^ Larkin, Max (March 9, 2023). "Bay State College faces eviction over $720,000 unpaid rent claim". www.wbur.org/. WBUR. Retrieved March 10, 2023.
  26. ^ https://www.baystate.edu/files/resources/bay-state-college-closure-information-2.pdf. Retrieved May 23, 2023. {{cite web}}: Missing or empty |title= (help)
  27. ^ "Joint Statement New England Commission of Higher Education and Bay State College" (PDF). www.neche.org. New England Commission of Higher Education and Bay State College. Archived (PDF) from the original on June 1, 2022. Retrieved May 7, 2022.
  28. ^ "JOINT STATEMENT New England Commission of Higher Education and Bay State College" (PDF). www.neche.org. New England Commission of Higher Education (NECHE). Archived (PDF) from the original on January 25, 2022. Retrieved May 26, 2022.
  29. ^ "Joint Statement New England Commission of Higher Education and Bay State College" (PDF). www.neche.org. June 1, 2022. Archived (PDF) from the original on June 2, 2022. Retrieved June 3, 2022.
  30. ^ Burns, Hilary (January 17, 2023). "Regulators will strip Bay State College's accreditation". The Boston Globe. Archived from the original on January 17, 2023. Retrieved January 17, 2023.
  31. ^ a b "Bay State College". nces.ed.gov. US Department of Education. Archived from the original on May 7, 2022. Retrieved May 7, 2022.
  32. ^ "AMBOW BSC INC. AND SUBSIDIARY AUDITED CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2020" (PDF). www.baystate.edu. Bay State College. Archived (PDF) from the original on May 25, 2022. Retrieved May 25, 2022.
  33. ^ "Bay State College – FY20 Financial Statement Summary" (PDF). www.baystate.edu. Bay State College. Archived (PDF) from the original on February 17, 2023. Retrieved May 25, 2022.
  34. ^ "Bay State College Becomes First Massachusetts Institution to Join National Association of Collegiate Esports". www.baystate.edu. Bay State College. Archived from the original on May 16, 2022. Retrieved May 16, 2022.
  35. ^ "The Bay State College Call of Duty "God Squad"". efuse.gg/. Efuse. Archived from the original on June 1, 2022. Retrieved May 16, 2022.
  36. ^ "NACE Starleague Spring 2022 Season Recap". cslesports.com. CSLE Sports. April 28, 2022. Archived from the original on June 1, 2022. Retrieved May 16, 2022.
  37. ^ "Bay State College". collegescorecard.ed.gov/. US Department of Education. Archived from the original on June 1, 2022. Retrieved May 7, 2022.
  38. ^ "Nursing Schools in Massachusetts". www.nursingexplorer.com. Nursing Explorer. Archived from the original on May 22, 2022. Retrieved May 16, 2022.
  39. ^ "Form 20-F". www.sec.gov. Securities and Exchange Commission. Archived from the original on May 9, 2022. Retrieved May 9, 2022.
  40. ^ Milford, Phil; Stilwell, Victoria (February 27, 2013). "Ambow Education Investors Pursue Lawsuit as Shares Drop 17%". Bloomberg. Archived from the original on February 11, 2018. Retrieved December 27, 2022.
  41. ^ Miller, Matthew; Aldred, Stephen (June 18, 2013). "Ambow setback teaches Baring a lesson in China investing". www.reuters.com. Reuters. Archived from the original on May 25, 2022. Retrieved May 25, 2022.
  42. ^ "Ambow Completes Reverse Stock Split". en.prnasia.com. PR Newswire. Retrieved May 25, 2022.
  43. ^ Kail, Benjamin. "Shareholders of Bay State College owner approve $12M sale of China-based assets". /www.bizjournals.com. Boston Business Journal. Archived from the original on December 27, 2022. Retrieved December 27, 2022.
  44. ^ "Ambow Education Obtains National Patent for AI Panorama Digital Teaching System". www.prnewswire.com (Press release). PR Newswire. Archived from the original on May 12, 2022. Retrieved May 12, 2022.
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42°21′08″N 71°04′38″W / 42.3521°N 71.0771°W / 42.3521; -71.0771

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