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Academic Report The Year in Review 2013 2014

Provost s Letter 2 Overview 4 Education 9 KAPLAN UNIVERSITY Academic Report The Year In Review 2013 2014 Graduation 20 Employment 24 School and Program Overview 28 KU in Detail 39 Leadership 43 Key Metrics 46 1

Academic Report The Year In Review 2013 2014 PROVOST S LETTER Iam pleased to present Kaplan University s 2013 2014 Academic Report. This fifth annual publication summarizes our accomplishments, outcomes, and ongoing progress on key institutional metrics over the last academic year. Several important initiatives and events inspired and guided our work this year. KU 3.0 Kaplan University Provost Betty Vandenbosch KU 3.0 is the mobilization of support around 10 key initiatives formulated to refocus academics and operations. The goal of this University-wide effort is to develop and deliver new curricular models that will improve learning, reduce time to degree, and attract new student segments and partners to our programs. The effort also includes enhancements to our technical and operational infrastructure to improve the student experience and outcomes. Why KU 3.0? We trace our roots to 1937 in Davenport, Iowa, where the American Institute of Commerce (AIC) started as a postsecondary business school, teaching primarily female students. AIC was a remarkably forwardthinking idea: at the time, few women in America had the opportunity for higher education. Moreover, business was not a discipline considered worthy of higher education. We consider AIC the embodiment of KU 1.0. In 1999, Kaplan University was awarded experimental site status by the U.S. Department of Education to test whether online education merited financial aid. Many were skeptical about whether students could learn online. We regard this milestone as the starting point for what we refer to as KU 2.0. KU 3.0 represents the next big step forward in our evolution. Employment and Support Equipping students to become stronger, more employable job candidates has always been a chief priority for Kaplan University. We are digging even deeper to identify opportunities that will help our students connect with employers and get hired. Students and alumni report our programs and Career Services team have given them resources to build professional skills and become high-performing employees. Recognition During the academic year, Kaplan University received recognition on several fronts. One of the Nation s Top Ranked Online Bachelor s Degree Programs by U.S. News & World Report: Each year, U.S. News & World Report evaluates and ranks the nation s college and university programs. In its most recent ranking of online programs, the magazine surveyed nearly 1,000 programs, evaluating only the regionally accredited schools that met the federal standard of 100 percent online course delivery. Kaplan University s bachelor s programs ranked in the top 20 percent of online programs.* One of the World s Most Innovative Education Companies by Fast Company: In its annual rankings of the world s most innovative companies, Fast Company magazine ranked our parent company Kaplan, Inc., number 3 among innovative education companies in what it called the new era of education. In its report, the magazine referenced Kaplan University: The 75-year-old industry stalwart might have started as a test-prep company, but it continues to evolve to keep pace with students changing learning habits and the changing job market. It s wholly embracing and developing new tech-centric curriculums: Last year, it launched a pilot program at its university s School of Information Technology, which used the gamification platform Badgeville to boost participating students grades by 9%, graduated the inaugural class of its Techstars-powered education startup accelerator, launched a boot camp for aspiring Ruby on Rails web developers, and in its most strategic, and perhaps preemptive, move acquired Grockit, the notable online test-prep service that recently logged on its one millionth user. U.S. Department of Education ranking: As part of its efforts to make college more accessible for American families, the federal government requires the Department of Education to annually publish cost information about colleges and universities by sector. Kaplan University appears on the following lists of the top 10 percent of the nation s lowest-cost institutions: > Lowest Tuition, for-profit four-year institutions: the Maine campuses of Kaplan University (Augusta, Lewiston, and South Portland, Maine) > Lowest Net Price, for-profit four-year institutions: Davenport and Mason City, Iowa, campuses; and Augusta, Lewiston, and South Portland, Maine, campuses Innovation and Continuous Transformation We believe in innovation and continuous transformation, identifying and applying the best practices that improve the student experience and learning outcomes. Our ongoing experimentation with new technologies motivational badges, virtual labs, open online courses, and more has led to advances that promise to better engage and motivate new types of learners. Our Research Pipeline Kaplan University s ever-expanding investment in institutional research fosters continuous improvement and provides the infrastructure for research and innovation to flourish. Strategic Plan The University s strategic plan for the years 2014 2017 was developed and has been approved by our Board of Trustees. The plan provides a road map for strategically positioning Kaplan University as a leader in higher education. We are resolute in our determination to help close the skills gap in the United States and contribute to building a highly educated workforce. We know the benefits both tangible and intangible that an educated populace provides to society. And, we re committed to this goal: not to merely confer degrees but to provide an affordable, outcomes-focused education that enables people to gain new skills, succeed in their careers, and achieve their dreams. Sincerely, Betty Vandenbosch, PhD Provost Kaplan University Fall 2014 * U.S. News & World Report, 2014 Best Online Bachelor s Programs Rankings, From Fast Company, March 2014 2014 Mansueto Ventures, LLC. All rights January 8, 2014. reserved. Used by permission and protected by the copyright laws of the United States. The printing, copying, redistribution, or retransmission of this 2 Content without express written permission is prohibited. Provost s Letter 3

Overview Tierra L. Washington Graduate, Master of Science in Information Technology Kaplan University is an institution of higher learning dedicated to providing innovative undergraduate, graduate, and continuing professional education. Our programs foster student learning with opportunities to launch, enhance, or change careers in a diverse global society. The University is committed to general education, a student-centered service and support approach, and applied scholarship in a practical environment. That is our mission. We focus on achieving that mission in service of those who have been described as adult learners, providing our students with the support and tools they need to achieve their educational potential and meet their life goals. Kaplan University s offerings range from certificates and diplomas to graduate and professional degrees. Students can receive credit for coursework performed at other accredited institutions as well as for existing knowledge, experiential learning, and military service. Through the ongoing development of our new modularized curricular model, students will be able to get more credit for their previous learning knowledge and skills gained at school or work or through training enabling them to earn a degree more quickly and at a lower cost. To help students pursue the course of study that optimizes their career potential, we provide a suite of services and rich academic support, including online tutoring, labs, and web-based career planning diagnostics. Kaplan University s School of General Education also addresses the unique needs of adult learners. Under our General Education framework, students are empowered to hone their critical thinking skills within the context of their chosen field of study. In addition, all students learn six Professional Competencies: Communication Teamwork Leadership Problem Solving and Critical Thinking Personal Presentation Multiculturalism and Diversity The General Education Literacies and Professional Competencies are embedded throughout our undergraduate curricula to assure that our graduates are well-rounded and prepared for the workplace. Our standards-based, outcomes-focused approach strives for continuous improvement by assessing students skills and identifying effective teaching practices across a variety of learning modalities. The University With our academic headquarters in Chicago, Kaplan University comprises online schools and 16 ground locations that stretch from Augusta, Maine; to Lincoln, Nebraska; to Concord Law School in Los Angeles, California. We also operate online student support centers in Chicago; La Crosse, Wisconsin; Orlando; and South Florida. For a list of our locations, see page 44 in this report. During the academic year beginning July 1, 2013, and ending June 30, 2014, Kaplan University conferred 13,454 degrees and 440 certificates and diplomas.* For a complete list of Kaplan University s academic programs, see page 38. *All data in this report, unless otherwise noted, is provided by the Office of the Provost of Kaplan University and covers the academic year beginning July 1, 2013, and ending June 30, 2014. How We Began We trace our roots to the American Institute of Commerce, a postsecondary school that opened its doors in 1937 in Davenport, Iowa, to provide training for underserved jobseekers in a nation still reeling from the Great Depression. That institution became Kaplan College in 2001 after it was acquired by Kaplan, Inc., a global provider of educational and career services for individuals, schools, and businesses. In the years that followed, Kaplan College introduced degree programs online with just 34 students and a handful of degree options. After expanding our academic offerings in 2004 to include master s programs, we changed our name to Kaplan University. Kaplan University continued to grow and innovate with the addition in 2007 of Concord Law School, the nation s first online law school, and of Hamilton College, with its seven campuses in Iowa and Nebraska. In 2009 we added a Kaplan University campus in Hagerstown, Maryland, and merged with Maine-based Andover College with campuses in South Portland and Lewiston. AIC in 1937 and the Davenport campus today Kaplan University by the Numbers Important Kaplan University metrics for the 2013 2014 academic year: Total enrollment: 40,491* Students over age 30: 61 percent Female students: 76 percent Kaplan University scholarships and grants: $23.9 million awarded to 37,978 students Degrees awarded: 13,454 Campuses and other locations: 16 Faculty with doctoral degrees: 40 percent * Student census represents actual matriculated students as of June 30, 2014. 4 Overview 5

Academic Report The Year In Review 2012 2013 In 2011 we further expanded our offerings for working adults with the addition of our School of Professional and Continuing Education (PACE). PACE provides license preparation, professional development, and continuing education programs to businesses and individuals. Our Vision We strive to be a lifelong partner for career improvement, delivering a best-in-class educational experience with an unmatched commitment to student success. What We Offer At Kaplan University, our approach is personalized and flexible. For example, students can enroll in a program offered online or in a traditional program operated at one of our ground campuses or learning centers. Or students can opt for blended learning, enrolled at a ground campus or learning center and taking some of their courses online. Our Approach Designed to support the unique needs of adult learners, our approach and related initiatives align with the five key pillars of our strategic plan. Academic Stature: We are committed to providing students with the knowledge and skills they need to be successful in their careers. To this end, we focus on discipline-based and pedagogical research, continuously examining and improving our curricula to meet the evolving demands of employers. We are proud of our exemplary faculty leaders, teachers, and professionals in their fields. And, we regard accreditation as the ultimate endorsement of all we do. Next-Generation Learning: We emphasize research and innovation to improve learning into the next generation. Our innovation-rich environment prepares students to learn efficiently, continuously enhances the student experience, and improves learning outcomes. Student Experience: The student experience plays a fundamental role in academic success. We enrich our students experience by providing small classes, live seminars, 24-hour support resources, comprehensive student advising, proactive career services, and a community environment with clubs, honor societies, and networking opportunities. We foster connections among caring faculty and fellow students. Our faculty bring substantive expertise to the classroom and engage students with energy and enthusiasm. As part of our commitment to the student experience, Kaplan University was accepted into the second cohort of The Higher Learning Commission s new Academy for Persistence and Completion. Growth: We are positioning Kaplan University for growth by focusing on our value proposition for students: providing a high rate of return on their educational investment and their experience with us. Great Place to Work: Our students are part of a university community in which faculty and administrators are encouraged and expected to do the right thing. Our goal: to make Kaplan University a great place to work, learn, and grow. Accreditation Kaplan University is accredited by The Higher Learning Commission. We are also accredited by numerous program-specific accrediting agencies and approval grantors. We value accreditation as part of our ongoing pursuit of quality and are enthusiastically pursuing additional accreditations. During the 2013 2014 academic year, we achieved the following approvals: The associate s degree programs in our School of Business have been awarded accreditation by the Accreditation Council for Business Schools and Programs. Our School of Business also earned programmatic accreditation from the Global Accreditation Council Project Management Institute for its Master of Business Administration and Master of Science in Management programs. Also in the School of Business, the Master of Science in Finance program with a specialization in financial planning has been designated by the Certified Financial Planner Board of Standards as a CFP Board- Registered Program. The Medical Assisting Education Review Board conducted a site visit of Kaplan University s Omaha campus as part of its reaffirmation of accreditation for the campus s Medical Assisting program. The review identified several strengths and no citations, and reaffirmed the program through 2023. The National Association for Alcoholism and Drug Abuse Counselors reviewed the University s Master of Science in Psychology curriculum and granted it NAADAC-Approved Academic Education Provider status in offering addiction counselor training. For a full listing of the University s accreditation, licensing, and programmatic approvals, visit www.kaplanuniversity. edu/about/accreditation-licensing.aspx. Our Students Closing the skills gap involves opening doors for adult learners. We do this by providing student-centered, competency-focused, flexible support systems. Our unique approach helps adult learners complete their education and meet their career objectives. During the 2013 2014 academic year, 40,491 students were enrolled in online programs, at our ground campuses, and through our learning centers. More than three in four students (76 percent) are female; 61 percent are age 30 or older. Based on student self-reporting, mean student household income stood at $33,084 and mean student income at $23,941 upon matriculation.* During this academic year, more than half of our students (54 percent) reported that neither of their parents had attended college. We re proud to help make college possible for firstgeneration students. *These figures are based on income data reported by 33,947 Kaplan University students who applied for federal financial aid by completing the Free Application for Federal Student Aid, or FAFSA. Of this number, 63 percent qualified for Pell grants. Students with access to more financial resources typically do not apply for financial aid. Given these factors, the income values may underestimate the actual financial resources available to the University s students. The Challenge of Higher Education With our tradition of providing educational opportunity for adult learners, we take a keen interest in factors that make college more challenging for undergraduate students entering Kaplan University: Is older than typical college age (defined as ages 18 to 22) Attends school part time Files taxes as independent Has earned a GED Works full time while enrolled Has legal dependents other than a spouse Is a single parent During 2013 2014, entering Kaplan University undergraduate students exhibited a mean of 3.4 risk factors. Risk-Factor Distribution Among Entering Undergraduate Students, 2013 2014 Proportion of Entering Student Population % 30% 20% 10% 0% 0.99% 0 6.65% 1 18.13% 2 26.54% 24.55% 22.53% 3 4 Risk Factor Distribution 0.61% 5 6 6 Overview 7

Committed to Serving the Public Good At Kaplan University, we work to: Address skills gaps that hinder economic development. Help military personnel effectively transition to civilian life. Reduce the cost of higher education for our students, partners, and society. Increase college attainment among adult learners and high-risk populations. Incorporate service in learning activities. Encourage and support faculty scholarship. Encourage public service to promote and encourage charitable activities and volunteerism among our faculty, staff, and students. Serving the Military We are the academic choice of more than 8,800 militaryrelated students. Included in that number are 2,784 U.S. military servicemembers, 4,146 veterans, and 1,751 military spouses and dependents. We recognize the special (and often daunting) challenges of military life and work. Our Military Student Support Center staffers are specially trained to serve the needs of military students. We offer undergraduate tuition reductions for military personnel, veterans, and spouses of active-duty military: reductions, on average, of 55 percent for active military, 38 percent for veterans, and 10 percent for spouses of active-duty personnel. Both active-duty servicemembers and veterans are eligible for special tuition rates for our graduate program offerings. Our American Freedom Foundation Military Family Scholarship program has awarded more than 400 scholarships to spouses of military service personnel in nearly all 50 states, 7 countries, and over 100 military installations worldwide. Kaplan University also participates in the U.S. Department of Veterans Affairs Yellow Ribbon Program in all of our graduate programs. Our policies support military students facing deployment or a permanent duty change. For example, students may put their program on hold for up to 5 years while on active duty. Kaplan University acknowledges the value of military training and prior coursework and accepts, on average, 34 percent of the credits graduating military-affiliated students need to earn a degree. Kaplan University s Student Military Association (KUSMA) provides a venue for military students (active-duty members, spouses, and veterans) to engage with one another outside of the classroom. In 2014 Military Times Edge magazine named Kaplan University to its top 20 Best for Vets list of schools offering online education. Kaplan University Washington Redskins Military Family Scholarship winner Neashaundra Dixon (third from left), December 2013. Education ROBERT REED Graduate, Bachelor of Science in Fire and Emergency Management Kaplan University offers certificates and degree programs at the associate s, bachelor s, and master s levels, as well as the Juris Doctor and Executive Juris Doctor degrees from our Concord Law School and the Doctor of Nursing Practice degree from our School of Nursing. In 2013 2014, 74 percent of our students pursued undergraduate degrees, certificates, or diplomas while the remaining 26 percent enrolled in graduate-level programs. During the 2013 2014 academic year, 94 percent of our students engaged in an online learning environment (as compared to nearly 90 percent the prior year). We make our online resources available to all students. Over this year, 61 percent of our on-campus students took one or more online courses (compared to 54 percent the prior year). Curriculum At Kaplan University, curriculum development is focused on and designed to support the continuing development of students knowledge and behavior, including learning capabilities, capacities, intellectual curiosity, and the ability to apply their learning in context. We are focused on offering the most current and relevant courses and programs designed to meet the needs of employers and to put our students in the forefront of their selected careers. To this end, we continuously evaluate our courses and programs. Under our systematic review of courses during the 2013 2014 academic year, based on rigorous data analysis, we developed 85 new courses and revised 473 courses. Flexible, Innovative Programs We use a variety of approaches and resources to help students succeed, beginning with pre-enrollment testing to identify those who may be at risk. Our involvement continues at admission with our Kaplan Commitment Personalized advising supports new students during their enrollment and throughout their time at Kaplan University, with an emphasis on the first few months to ensure a strong start. Our systematic efforts to observe and mitigate the most salient drivers and root causes of first-term failures and withdrawals are ongoing and will remain a key focus. The Kaplan Way for Learning Central to all our efforts is the Kaplan Way for Learning, an evidence-based learning strategy for driving student learning outcomes. It incorporates the principles of motivation, contextualization, and prepare, practice, and perform into the curriculum. It comprises three key elements: Understanding expertise Designing and delivering content Measuring and evaluating progress These elements are united through a commitment to pilot innovations and rapidly scale them upon evidence of success. In 2013 2014, we expanded our review process with a 30-hour online training course in best practices in instructional design and curriculum development for all curriculum and innovation staff members. General Education Literacies We are committed to preparing thinkers who can work and workers who can think. Our General Education program equips students to be literate and knowledgeable in nine core areas: Arts and Humanities, Communications, Critical Thinking, Ethics, Mathematics, Research and Information, Science, Social Science, and Technology. These General Education Literacies help empower students to become independent, critical thinkers who are able to express ideas coherently and engage in a diverse, changing world. 8 Education 9

i decided to go back to school to make a difference in my life. I d noticed that a lot of police agencies want college credits; I have tons of experience but they wanted college. To be honest, I was afraid of going back to school until my kids said, Dad, go back and get a degree, just like you tell us to do when we get older. since then I ve made the Dean s List and now I m a police officer in Maryland on the Special Response Team, thanks to the awesome professors at Kaplan University for holding me accountable. Professional Competencies We believe professionalism the behaviors that contribute to a positive, productive, and cohesive work environment is key to career success. Employers look to hire candidates who exhibit professionalism, and they encourage institutions of higher learning to place more emphasis on building professional competencies. At Kaplan University, we design our programs to help students build professional competencies in Communication, Teamwork, Leadership, Problem Solving and Critical Thinking, Personal Presentation, and Multiculturalism and Diversity. In the undergraduate programs, aspects of Communication and Problem Solving and Critical Thinking are taught within the integrated General Education program and courses, and in the General Education Literacies. The additional skills round out a body of professional skills. At the graduate level, all six areas will be incorporated into programs. For General Education Literacies outcomes for the 2013 2014 academic year, see page 41. Course-level assessment outcomes are displayed on page 17. Students General Education Literacies and Professional Competencies are evaluated using the following scale: 0 1 2 3 4 5 No Progress Emergent Introductory Practiced Proficient Mastery [Kaplan University students and graduates] have a dedication to their work unlike any other people I hire. Veryl Kroon, former CEO, Iowa Digestive Disease Center About Our Faculty Kaplan University s 3,373 faculty members combine strong educational credentials with real-world experience in their disciplines. Nearly all (94 percent) have an advanced academic degree; 40 percent hold a doctorate. Almost two-thirds of our faculty (65 percent) are female. Our 3,074 online faculty are based throughout the United States. For information on individual faculty members, see the faculty listings on the Kaplan University website at www.kaplanuniversity. edu/faculty.aspx. Supporting and Engaging Faculty Offering professional development for both full- and part-time faculty is a high priority. Kaplan University offers faculty a comprehensive array of opportunities to enhance their expertise in teaching, adult learning, and innovation and engage with their colleagues. Our Center for Teaching and Learning serves both new and veteran teachers. THERON JOHNSON Student, Associate of Applied Science in Criminal Justice Professor Kim Miller was Theron s instructor in a General Education class. While at first Theron didn t embrace the concept of critical thinking, Miller continued to encourage him. Today, Theron credits his success to honing his critical thinking skills and a professor who cared enough to help him succeed. We foster general education literacy through a six-course core curriculum in our bachelor s degree programs. Literacies are also embedded in most other courses. For example, a Communications requirement is embedded in nearly all undergraduate courses. All required courses contain learning activities and assessments in either Critical Thinking, Ethics, or Research and Information. Elective courses contain learning activities and assessments in Arts and Humanities, Mathematics, Science, or Social Science. A seventh course in professionalism and career development ensures that students become strong, careerfocused professionals. Designing and Assessing General Education Literacies and Professional Competencies A component of every Kaplan University program is a series of outcomes that identify the major knowledge, skills, and attitudes employers expect of program graduates. Each program includes courses that prepare students for employment in the field by providing preparation, practice, and opportunities to show mastery of the program outcomes. Each course has a number of outcomes that support and map to program-level outcomes. Faculty members assess student mastery of each course outcome through course-level assessments, which are mapped to program outcomes. In addition to the course-level assessments and program outcomes, General Education Literacies are also assessed that allow students, faculty, and programs administrators to see how students progress throughout the program. In the major required courses, Professional Competencies are addressed to help ensure students are prepared to enter any professional arena. Continuous Improvement At the end of each term, we measure faculty perceptions of curriculum features, associated technology, and characteristics of student readiness for learning. In this academic year, nearly 9 in 10 respondents (88 percent) reported that courses were appropriate for helping students meet learning objectives. More than 8 in 10 (85 percent) stated the courses included methods and tools to provide meaningful evaluation of student progress. More than 7 in 10 (72 percent) rated course content and structure as being above average, with 25 percent rating such content and structure as being average and 4 percent as being below average. Survey results, coupled with those from student end-of-term surveys and assessments made by faculty course leaders, contribute to decisions to revise courses. Class Size Class size for undergraduate courses (online and campus) averaged 22.3 students. Graduate courses class size averaged 16.8 students. Key components of our professional development resources include: 1. Live events: The Center for Teaching and Learning offers numerous live events every week, including presentations from a wide variety of faculty and staff on research, technology, and pedagogy. 2. Professional Development Workshops: The Center for Teaching and Learning offers more than 30 workshops in an asynchronous format. Examples of topics include The Course Lead Role at KU, KU Professional Competencies, The Scholarship of Teaching and Learning, Virtual Collaboration, and Blended Learning. 3. KU Village: Held annually, this online Universitywide conference enables faculty, administration, and staff to meet, learn, and share ideas about new directions in teaching and learning innovation. This year s KU Village welcomed 3,980 participants and explored such disparate topics as work/life balance, the future of online education, and effective grading practices. 10 Education 11

4. Googlepalooza: Our first Google-centered conference took place this year and attracted 1,125 participants. The event offered numerous sessions ranging from using Gmail to organizing Google calendar and using Google drive. 5. The Monday Minute: A weekly email for all faculty and academic administrators describes upcoming events sponsored by the Center for Teaching and Learning, offers a video clip demonstrating a useful teaching technique, and archives the previous week s events. 6. Orientation: New Kaplan University faculty members are required to complete an intensive course that provides a comprehensive look at the institution and our students. During their first term, new faculty members are taught best practices in providing constructive grading feedback, managing discussion boards, leading seminars, and building communities. New online faculty take one other required training course early in their careers at Kaplan University that details our support services, professional development opportunities, and other resources. Involvement in Governance Kaplan University faculty are deeply engaged in University governance, as demonstrated by strong faculty representation on our academic governance committees. Faculty are nominated and elected by their peers to this service. Nearly all committees have both full- and part-time faculty representatives. Faculty hold the majority of voting seats on three-fourths of the committees on which they serve. Applied Scholarship Our faculty and professional staff are affiliated with regional and national organizations specific to their disciplines, serving as board members, researchers, peer reviewers, and presenters. They speak at professional conferences and publish in peer-reviewed journals. This year, our faculty reported 207 publications, including 20 books or book chapters, 90 published articles in peer-reviewed journals and conference proceedings, and a variety of additional publications ranging from dissertations to technical and research reports. Scholarly Pursuits: Kaplan University Faculty Kaplan University faculty promote scholarship by contributing to their profession through research and publication in journals and more. Faculty authors are present in a wide range of academic disciplines, from business administration, education, information technology, and management to criminal justice, health sciences, and nursing. Some examples of faculty publication during the 2013 2014 academic year include: 1. Business professor William Hahn, DBA, co-authored the textbook Forensic Accounting, published by Pearson Education. 2. Nanna Cross, PhD, of Kaplan University s School of Health Sciences, co-authored Essential Medical Terminology, 4th ed., published by Jones & Bartlett Learning. 3. Lori Tripoli, JD, who oversees the University s Master of Science in Legal Studies program, authored Contemporary Law Office Management, 2nd ed., published by Aspen/Wolters Kluwer. Evaluating Faculty Performance We annually evaluate faculty member performance using rubrics measuring five core criteria: Substantive expertise Preparation Presentation Classroom management Cultural/environmental contribution These evaluations are designed to enhance the expertise of our faculty in teaching and learning improvement and innovation. Partnerships A key strategy (and part of KU 3.0) is building partnerships with businesses and community colleges. Our partnership team is focused on creating strong relationships and support systems that ensure the best educational experience and create a high rate of return for our partners, and their employees, investment in education. Innovation and Next-Generation Learning The Kaplan University culture is one that celebrates innovation and continuous transformation. Innovation includes identifying and applying best practices that improve the student experience and learning outcomes. It includes delivering education on mobile devices, bringing learning activities to mobile phones and tablets in an increasingly mobile world. Kaplan University electronically delivers the majority of learning materials used by our undergraduate students. Those materials include digital textbooks that enable students to highlight content, take notes, and transfer their annotations to create individualized study guides that aid their learning. We continue to increase the availability of electronic and interactive materials to students. We experiment with such technology as motivational badges, virtual labs, and open online courses to leverage advances that better engage and motivate different types of learners. Additionally, each academic term we measure the impact curriculum changes have on learning outcomes, grades, retention, and student satisfaction in every course. When we discover that a change leads to greater student success (such as the use of multimedia or other interactive elements), we implement it in other courses as appropriate. Through the centralized implementation of our curriculum, we ensure consistency in measuring learning outcomes. A strategic focus for us this academic year has been curriculum development that allows students to maximize their previous education and experience. From pilot studies, we have been able to conclude that a modular curriculum improved the student experience and performance and reduced time to degree. We will continue to develop this model to increase both the learning and financial benefits to our students. Kaplan University President Wade Dyke and Graduate Edwin Bassett 12 Education 13

Our Research Pipeline to the Next Generation of Learning Kaplan University invests annually in institutional research to improve our programs. Our Research Pipeline provides an infrastructure for the continuous testing and refinement of learning theories, practices, and innovations hypothesized to have a broad impact in adult higher education. This is part of our commitment to continuous improvement and our focus on data-driven decision making. In 2013, we launched a research program designed to improve student learning and persistence through the rigorous testing of experimental interventions (drawn from the academic literature of such disciplines as cognitive science, social psychology, and educational psychology). Since then, the Research Pipeline has expanded in scope, now also acting as a means to critically and empirically examine educational effectiveness. For example, one set of studies found that faculty members and advisors were equally effective at facilitating orientation courses. In one of the more promising lines of research, faculty-to-student email outreach using a faculty dashboard (a tool that signals when students are at risk for poor performance) has led to higher grades and better persistence. Some Research Pipeline studies pertain to measuring and improving the reliability of faculty evaluations of learning outcomes. After it was found that scoring consistency by faculty did not reach desired levels, followup studies were designed to test methods to improve reliability. While those studies are still underway, one study reveals that minimal recurring training in evaluating student outcomes yields appreciable increases in reliability. Perhaps the most exciting work on the horizon for the Research Pipeline comes from research on increasing student motivation. Much of this research is based on changing students perceptions of themselves and of their schoolwork. For instance, we are currently testing ways to produce a growth mindset in students that is, the belief that intelligence is malleable rather than a fixed attribute and to help students connect what they do in the classroom to their broader, personal goals. Another research study explores the impact that the stereotype threat might have on student performance and methods to ameliorate that threat. In addition to working with academics in our own university community, we partner with the broader research community. These collaborations have provided a rich source for new avenues to explore. For example, the team has consulted with these nationally regarded scientists: 1. John Sweller: The Research Pipeline team worked with Dr. John Sweller, a leading educational psychologist and the formulator of cognitive load theory, to examine the impact of worked examples in University courses on student achievement. Dr. Sweller is Professor Emeritus at the University of New South Wales. 2. Todd Rogers: The team collaborated with Dr. Todd Rogers, a behavioral scientist at the Harvard Kennedy School of Government, to mobilize the support of students family and friends to improve student retention. Additionally, as part of Stanford University s Mindset Challenge, the Research Pipeline team is collaborating with Stanford researchers to launch several studies examining the impact of small, focused social-psychological interventions on student achievement and retention. Attempting to apply academic research in a live learning environment, particularly in an online learning environment, presents several challenges. For one, the Kaplan University student population differs markedly from those at most research universities (which can limit the impact of certain types of interventions). In contrast to laboratory research, we cannot mandate that students participate in a study, nor can we always track how students interact with experimental stimuli. Finally, because many interventions must be introduced within the context of ongoing courses, maintaining an ideal level of experimental control can be difficult. Still, we see significant benefits. Our large and diverse student population enables us to discover whether we can replicate an outcome outside the restrictive laboratory settings in which they were obtained actually helping real students succeed in real courses, with real consequences. Also, using online courses lets us more easily collect and analyze academic data and implement changes on a large scale. As the Research Pipeline continues to mature, it will serve as a lasting source of data that can promote curriculum and process improvement. Individualized Student Support The student advisor relationship is important to the educational experience, particularly for online students. Kaplan University supports students with three types of advising: education, career, and technology. At enrollment, a student is paired with an advisor who helps him or her make appropriate degree plan choices and manage any challenges. Our Career Services advisors offer comprehensive resources to help students identify the paths most compatible with their career goals and prior learning to ensure reduced time-to-degree and manage educational expenses. For technology and basic document and registration support, our Student Support and Solutions advisors are available 24 hours a day, 7 days a week. Academic Support Kaplan University s virtual academic support centers help students gain greater understanding and get the most value from their coursework. Business Center: Introduced in 2012, the Business Center offers real-time tutoring to School of Business students in associate s, bachelor s, and master s degree programs. Math Center: The Math Center helps students with the skills required for success in courses involving mathematics literacy. Support includes live tutoring, question-and-answer submissions, a project review service, video example responses, workshops, and oneon- one assistance to students, at their convenience. Science Center: The Science Center provides tutoring and additional help. Students can receive live support during tutoring hours or submit questions via email. The Center also offers practice problems, mini-lessons, virtual field trips, workshops, and exam study sessions. Technology Center: The Technology Center supports students in information technology courses with online tutoring, email support, tutorials, and weekly webinars on information technology topics. Many tutors are seniors majoring in information technology. Writing Center: The Writing Center offers live tutoring, paper reviews, workshops, and a writers reference library. Support includes English language learner support for both students and faculty, English fundamentals, podcasts, and Writing Across the Curriculum assistance, building writing skills throughout students time at Kaplan University. Library: Kaplan University s library offers a wealth of resources for students and faculty. In a recent survey, more than 4 of 10 undergraduates (42 percent) and over 7 of 10 graduate students (71 percent) reported using the library at least once a week. Measuring Student Satisfaction We regularly survey our students to gauge how they feel our university performs against their expectations. According to the most recent results of two national surveys the National Survey of Student Engagement (2013) and the Adult Learner Inventory (2014) respondents say Kaplan University performs well against their expectations. Moreover, compared to the national averages reported at other institutions of adult learning, Kaplan University respondents were more positive about their experience. During the 2013 2014 academic year, we began using another measurement tool: Net Promoter Score, or NPS. Developed by Bain & Co., Satmetrix, and Fred Reichheld, NPS measures customer loyalty. Kaplan University has begun implementing the Net Promoter Score system to measure student satisfaction with interactions with Admissions, Education Advising, Financial Aid, and the Student Finance Center. 14 Education 15

Student Organizations Building community enriches the student experience, enhances academic outcomes, and grows our alumni network. Our student organizations help students develop new skills and open doors to new opportunities. This year, Kaplan University s Office of Student Life supported 31 registered student organizations: 8 honor societies and 23 clubs and professional groups. During the 2013 2014 academic year, nearly 5,900 students participated in at least one organization. More than 100 student leaders and 34 faculty advisors helped oversee day-to-day operations of these organizations. Also during this academic year, Kaplan University was approved to form a chapter of Tau Upsilon Alpha, the national human services honor society. In an online ceremony, 30 students were inducted as founding members. We see a correlation between academic success and student involvement in organizations. For students who joined one or more University organizations, the persistence rate was 84 percent, compared to 63 percent for those who did not. For a list of Kaplan University student organizations, see KU in Detail. Each year Golden Key International Honour Society awards more than $1 million in scholarships to student members who best exemplify the organization s ideals of academics, leadership, and service. During the 2013 2014 academic year, two Kaplan University students were among the recipients of 42 Golden Key scholarships. Keeping College Affordable Keeping college accessible and affordable is important for our students. Kaplan University seeks innovative ways to help individuals complete their studies efficiently and affordably. Credit Transfer Many students come to Kaplan University with significant academic experience. To help students complete their programs as quickly as possible, we permit them, where appropriate, to transfer academic credit earned at other accredited institutions. Under our credit-transfer policies in 2013 2014, 16,199 students received a total of 928,200 transfer credits, representing a total student savings of $303 million. Credit for Experiential Learning At Kaplan University, certain learning acquired from work and life experiences may be eligible for undergraduate academic credit. To apply, students prepare a comprehensive portfolio describing their experiential learning. Portfolios are reviewed by faculty from each discipline for which credit has been petitioned. Credit is awarded for evidence of learning, not merely experience. This approach is consistent with the Ten Standards for Assessing Learning developed by the Council for Adult and Experiential Learning.* Student Scholarships For most students and families, the cost of a quality education is a significant financial investment. To help, Kaplan University offers an array of scholarships and grants. During 2013 2014, we awarded 37,978 students nearly $23.9 million in scholarships or grants, 26 percent of which was need based, 50 percent merit based, and 24 percent grants. Keeping a college education affordable is important for our students. During the 2013 2014 academic year, the total program tuition for a graduate of Kaplan University averaged $31,030.* Source: Office of the Provost and Business Intelligence Department, Kaplan University, 2014. The Kaplan Commitment At Kaplan University, we remain committed to providing incoming undergraduate students with an opportunity to enroll in classes without first making a significant financial commitment so they may determine if the coursework meets their educational needs. Students may withdraw for any reason during this time, without financial obligation, or they can become fully admitted and earn credit for successfully completing their courses. Students who withdraw during the Kaplan Commitment period will not have to pay for the course nor will they receive financial assistance from the U.S. Department of Education. Since the program s introduction in 2010, more than 158,000 students have enrolled under the Kaplan Commitment, and 67 percent of those have matriculated to an academic program. Assessment We are dedicated to measuring our performance. This includes how well we provide a quality educational experience and how well we perform relative to our stated goals. We review the results of all of these measurements and use them as opportunities to improve our programs. Course-Level Assessment Course-level assessment provides an objective way to measure student mastery of course-level learning outcomes that is, looking at established criteria rather than norms. Percent We use this data to gauge student learning and, factored together with grades, end-of-term surveys, and other quantitative and qualitative data, inform course revisions. Each of our degree programs assesses disciplinespecific outcomes that reflect the most important skills, knowledge, and abilities students need to succeed. In addition, each program assesses General Education Literacies and Professional Competencies. Each program outcome is supported by a set of courselevel outcomes that, taken together, enable the student to master the program-level outcome. Course-level outcomes are more sharply focused components of expected program outcomes. Course-level assessment scores measure students current mastery level of the skills and knowledge described by the outcomes. Course-level assessment supports program outcomes, providing the framework for specific learning objectives and activities within a course. As shown in the graph, the percentages of students achieving course-level assessment values of at least the Practiced level (3 or higher) have remained consistent (86 to 87 percent) over the past 2 academic years. 40 35 30 25 20 15 10 5 0 Outcome Distribution by Academic Year 2013 2014 2012 2013 No Progress Emergent Introductory Practiced Proficient Mastery Source: Office of the Provost, Kaplan University, 2014. * Fiddler, M., Marienau, C., and Whitaker, U. 2006. Assessing Learning: Standards, Principles, and Procedures. 2nd ed. Chicago: Kendall Hunt Publishing Co. *Reflects average price paid after experiential learning credits, transfer credits, scholarships, and other savings. 16 Education 17

External Review and Assessment We track our performance not only internally but also externally with independent third-party assessments to compare our students performance to national norms. We use a broad range of third-party measurement and benchmarking tools: Highly regarded institutional surveys, such as the National Survey of Student Engagement (conducted every other academic year) and the Adult Learner Inventory. Profession-specific assessments, such as the State Bar of California s First-Year Law Students Examination and the National Council of State Boards of Nursing s National Council Licensure Examination (NCLEX ). Benchmarking studies, such as the ETS Proficiency Profile and a study by Peregrine Academic Services, comparing student knowledge and learning against that of students from other institutions. The ETS Proficiency Profile (ETS-PP) tests for college-level critical thinking, reading, writing, and mathematics skills. Kaplan University has administered the assessment four times to volunteer samples of freshmen and seniors from 2009 to 2013. Across those four assessments, average scores for Kaplan University freshmen ranged from 424 to 432 and average scores for seniors ranged from 435 to 439. Averaged across all four assessments, ETS-PP scores at Kaplan University show a greater difference between freshmen and seniors than at other participating universities. As cross-sectional studies, these findings represent a learning difference rather than a longitudinal learning gain. A recent benchmarking study by Peregrine Academic Services compared the mastery of our business school students in eight different degree programs across selected business-related subjects to aggregate pools of students from other institutions that participated in Peregrine tests. In nearly all programs, Kaplan University students aggregated results across subject areas slightly exceeded the test cohort norms, whether the comparative learning modality was online, campus based, or blended. Program-Level Assessment Our nursing programs and Concord Law School are subject to additional outcome assessment programs. These third-party assessments are important to our emphasis on quality improvement. We regularly consider adding other external assessments into our comprehensive assessment plan. Currently, we are piloting Peregrine tests for our early childhood development programs and the Educational Benchmarking Institute (EBI) assessments for our nursing programs. Results are not yet available for these assessments. Student Success We monitor the F-rate that is, a count of all failing grades divided by the count of all transcripted grades, including passing grades, failing grades, and withdrawal grades, for all courses begun during the academic year. During the last academic year, the F-rate across Kaplan University courses was 9.74 percent. End-of-Term Student Survey We diligently measure our students satisfaction with their experience in a number of ways. At the end of each term, students are encouraged to evaluate the quality of the curriculum and instruction in an online survey. Spotlight on MAERB The Medical Assisting Education Review Board (MAERB) makes recommendations to the Commission on Accreditation of Allied Health Education Programs for accreditation of medical assisting programs. MAERB also approves new faculty, program directors, practicum coordinators, and any extensive curricular changes related to medical assisting programs offered at Kaplan University s ground campuses. Kaplan University s medical assisting programs in Iowa, Nebraska, and Maryland are accredited by MAERB. Our Maine campuses are in candidacy with MAERB and will host an accreditation visit in late 2014. The survey consists of 12 rating and open-ended items: six items each for the course and for the instructor. The survey evaluates instructors on such criteria as content knowledge, preparedness, and engagement to lead the course effectively. During 2013 2014, 88 percent of student respondents expressed satisfaction with the quality of their courses. Additionally, 91 percent of respondents reported that instructors either met or exceeded these criteria. Survey results inform curriculum revision and policy development and provide a basis for faculty development. Adult Learner Inventory The Adult Learner Inventory surveys undergraduate students ages 25 and older at 4-year institutions across the nation. The survey addresses eight primary dimensions of a university education: Assessment of Learning Outcomes Financing Life and Career Planning Outreach Student Support Systems Teaching Learning Process Technology Transitions 6.2 6.0 5.8 5.6 5.4 5.2 5.0 4.8 Kaplan University Mean Satisfaction* Outreach *Based on a 12% response rate. Life/Career Planning Financing Students rate the most important aspects of their educational experience and how satisfied they are with their colleges performance in each area. The differences in those ratings (displayed as satisfaction gaps ) help signal how well a school is providing students with what they want and need in their education. We analyze our students responses and compare them to the reported national means. Latest Adult Learning Inventory results show that, on average, Kaplan University respondents indicate higher levels of satisfaction on all eight scales compared to corresponding national group averages. Our students expressed greatest satisfaction with the University s performance in the categories of Outreach, Teaching Learning Process, Student Support Systems, and Technology. Survey results, along with other feedback sources, drive improvements in how we serve students. Adult Learners Mean Satisfaction Ratings National 4-Year Adult Learners Mean Satisfaction Assessment of Learning Teaching Learning Process Student Support Systems Technology Transitions Source: 2014 Adult Learner Inventory. 18 Education 19

GRADUATION Tara Marie Casa Graduate, Master of Science in Legal Studies For a great many Kaplan University students, their college graduation represents a lifetime achievement. Everything that we do, as an institution of higher learning, endeavors to encourage and support our students to reach this goal. During 2013 2014, we conferred 13,454 associate s, bachelor s, master s, and professional degrees as well as certificates and diplomas: Associate s: 4,680 Bachelor s: 5,637 Master s: 3,048 Professional/doctorate: 89 Certificate/diploma: 440 2010 2011 associate s, advanced start, and master s degree starts who graduated before or during the 2013 2014 academic year Certificate and graduate certificate students who began their studies at a point commensurate with 150 percent of their designated program length and a date falling within the 2013 2014 academic year Kaplan University s graduation rates of full-time students are encouraging, given a student population primarily comprising adults. Part-time status is an acknowledged risk factor and plays a large role among the students in our community. We continue to pursue ways to increase graduation rates for all University students, particularly for part-time undergraduates. Survey Statement Kaplan always puts my needs, as a student, first. Kaplan University Capstone Survey Kaplan provides personalized support to help keep my program requirements in line with my life circumstances. I believe what I learned at Kaplan will help me reach my personal and career goals. Getting a degree from Kaplan was an efficient path to achieving my learning goals. I believe Kaplan is innovative in its approach to education. Source: Office of the Provost, Kaplan University, 2014. Agree or Strongly Agree (%) 89% 88% 96% 95% 93% Approximately 13 percent of recent graduates completed this year s survey. Eighty-nine percent of these respondents expressed overall satisfaction with their Kaplan University experience. Nearly 9 in 10 respondents (88 percent) said their educational program met their expectations. More than 8 in 10 (85 percent) said they would recommend Kaplan University to others. Eightysix percent reported their Kaplan University education was relevant to their current goals. This year s survey respondents reported that their degrees led to increased pay (21.0 percent), increased responsibility at work (14.9 percent), a career change (10.3 percent), the ability to pursue better opportunities (9.2 percent), or promotions (11.2 percent). These results reflect the positive impact Kaplan University is making in the lives of our graduates. Conventional graduation-rate methodologies focus on first-time, full-time students while Kaplan University s student population is largely adult learners enrolled full or part time. For degrees conferred during the 2013 2014 academic year, our graduation-rate methodology differs slightly from that of previous years. Calculations cover a period equal to 150 percent of normal time for example, 6 years for a 4-year degree. Degree KU Graduation Rate Number of Graduates FULL-TIME Graduation Rate Number of Graduates Part-time Graduation Rate Associate s 727 43% 3,646 27% Bachelor s 477 42% 3,811 16% Master s 1,682 49% 852 39% Source: Office of the Provost, Kaplan University, 2014. Alumni Survey Each year since 2008, we have surveyed our new graduates and alumni to gauge their Kaplan University experience. Their perceptions are valuable to us both as they move onto their career path and after they become established. The graduation rate includes those who were part of the following cohorts: 2007 2008 bachelor s degree starts who graduated before or during the 2013 2014 academic year Capstone Survey In their final term, students complete a survey designed to measure how well Kaplan University accomplishes its mission of providing innovative, student-centered education and offering an efficient path to meet their goals. During 2013 2014, more than 9,200 students completed the survey. Summer 2013 Graduation Ceremony 20 Graduation 21

Alumni Survey Results, 2014* Overall I am Satisfied with my Experience at Kaplan University. i would recommend Kaplan University to others. 49.9% 51.3% 50% 50% 40% 38.7% 40% 30% 30% 33.3% 20% 20% 7.5% 4.4% 3.7% 10% 5.2% 10% 1.6% 0 Strongly Agree Neither Agree Disagree Strongly 0 Agree Nor Disagree Disagree 3.9% Strongly Agree Neither Agree Disagree Strongly Agree Nor Disagree disagree 50% overall, the education i received at kaplan university is worth the cost. 50% the education is received at Kaplan University Is relevant to my current goals. 50.3% 40% 30% 31.8% 31.9% 40% 30% 35.9% 20% 10% 0 19.2% 9.7% 7.2% Strongly Agree Neither Agree Disagree Strongly Agree Nor Disagree disagree 20% 10% 0 8.8% 3.0% 1.6% Strongly Agree Neither Agree Disagree Strongly Agree Nor Disagree disagree The Educational Program at Kaplan University Met My Expectations. Source: 2013 2014 Alumni Survey. 50% 40% 30% 20% 10% 0 47.7% 39.9% 6.0% 4.1% 2.1% Strongly Agree Neither Agree Disagree Strongly Agree Nor Disagree disagree *Reflects responses of those who graduated between July 2013 and December 2013. Survey responses of alumni who graduated between January 2014 and June 2014 are not yet available. Serving Our Alumni We offer an array of resources, such as continued access to the CareerNetwork, an official alumni LinkedIn group, tuition reductions for alumni on further coursework, and other special benefits offered exclusively to alumni. We work to create greater awareness of the benefits accorded to Kaplan University alumni by publishing and distributing an alumni guidebook. To date, this guidebook has been distributed to 10,000 graduates of Kaplan University. Online alumni networks, a program of the Office of Student Life, offer an opportunity for Kaplan University alumni to connect with other alumni based on shared interests, academic program, or geographic location. Six alumni networks are currently in operation. 22 Graduation 23

employment Juan Santiago Graduate, Bachelor of Science in Criminal Justice Committed to providing outcomes-focused education and closing the growing skills gap, Kaplan University prepares students to become stronger candidates for employment. As we educate, we also guide our students to move confidently along their individual career paths. Because success requires mastering specific career-related skills, all our schools enlist advisory boards comprising industry professionals, employers, and educators who review program outcomes and help keep our curricula current. Kaplan University Graduates Are Working The following employment and salary graphs are based on employment information reported to Career Services staff by graduates who enrolled in a Kaplan University ground campus or learning center in the 2012 2013 academic year. (Data will be available for graduates in the 2013 2014 academic year after January 1, 2015.) Employment data include Kaplan University graduates who were admitted to a Kaplan University ground campus or learning center. Data do not include graduates of Kaplan University s online programs unless the student enrolled in an online program through a ground campus. Campus and learning center graduates represented 13 percent of Kaplan University graduates in the 2012 2013 academic year. The employment statistics for these students are derived by the following calculations: A list of total graduates (including those labeled as completers of the University) was created from the student information system. We then subtracted those who were in a waiver status. Waiver status includes those not seeking employment due to personal issues such as medical situations for themselves or an immediate family member, continuing education, active military duty for themselves or a spouse, international student status, incarceration, death, retiree choosing not to work, a stayat-home parent selecting not to work, those serving in a missionary or Peace Corps capacity, or those who have declined or not responded to Career Services multiple offers of assistance. The count of total graduates minus the waiver status graduates gives us the total of our available graduates for employment. The employment rate is the employed graduates divided by the available graduates. Employed graduates can include graduates working in full- or part-time positions, in field-related or nonfieldrelated positions, and can include employment that was already obtained before enrolling in a program of study in addition to those becoming employed in a new role after graduation. Of those available for employment consideration after graduation, over 90 percent of students admitted to ground campuses and learning centers were employed after graduation. 2012 2013 Employment of Students Admitted to Campuses or Learning Centers Degree Total Graduates Total Waived Available Graduates Employed Graduates Employed Graduates/ Available Graduates Kaplan University Graduates Increase Their Earnings The average (mean and median) incomes and changes in income of the 2012 2013 graduates are based on self-reported data from students entering ground campuses or learning centers, both upon entering the University and after graduation. To allow for meaningful comparisons, the income calculations cover only the available graduates for employment (refer to definition in the subsection above) who are employed and have provided both incomes (entering and postgraduation). The average income upon entering is derived from the Free Application for Federal Student Aid (FAFSA) submitted at enrollment. The average current income after graduation is based on self-reported, postgraduation salary data. The average income change is calculated as a mean of the individual student differences between entering and after-graduation incomes. Degree Mean Income Upon Entering median income upon entering Mean Current Income After Graduation Career Services: A Wealth of Skills Kaplan University s Career Services department embeds career-related skills training into the student life cycle and provides comprehensive support. Career Services staff help students learn to craft a resume, analyze job descriptions, write cover letters, create social-media profiles, build networking skills, and interview confidently. Working with students, educators, and prospective employers, Career Services helps identify the best employment opportunities for each individual. Staff provide job-search assistance, conduct mock interviews, and host a full calendar of online and ground-based workshops, seminars, career fairs, employer information sessions, and more. Through video conferences, students interact with employers, learn more about their hiring needs, and connect with others in their field of study. Average Income change After Graduation, 2012 2013, for students admitted to Campuses or Learning Centers* median current Income After Graduation Mean Income change After Graduation median Income change After Graduation Associate s $17,028 $14,730 $27,536 $25,000 $10,507 $10,600 Bachelor s $18,990 $16,880 $32,687 $28,080 $13,697 $11,424 Master s $24,061 $19,710 $38,365 $35,000 $14,311 $15,155 Source: Kaplan University Career Services Department. Graduate self-reported salary data. *Reflects the average (mean and median) incomes and changes of only Kaplan University graduates who were admitted to campuses or learning centers. The averages are based on 1,044 employed graduates who reported income for FAFSA purposes upon entering and shared income with Career Services after graduating. Table does not reflect income of all University graduates or those who neither completed FAFSA documentation nor provided postgraduation income. Average change is not the average FAFSA income subtracted from the average current income. It is an average of the differences from the student-level data. Associate s 1,274 422 852 814 95.5% Bachelor s 521 119 402 376 93.5% Master s 110 23 87 83 95.4% 24 Source: Kaplan University Career Services Department. Ground campuses and learning centers. Employment 25

Recent Employers of Kaplan University Graduates Over the course of the last 3 years, employers that have hired three or more Kaplan University graduates include: AT&T American Red Cross Dell Department of Veterans Affairs (multiple locations) First Data Merchant Services Frederick County Public Schools General Dynamics Information Technology H&R Block John Deere Killeen Independent School District Lowe s Mayo Clinic Health Systems Mercy Hospital and Medical Center Nationwide Insurance Phoenix (Arizona) Police Department TEK Systems Texas Department of Criminal Justice Transportation Security Administration U.S. Army U.S. Air Force U.S. Department of Defense United Healthcare Unity Point Health Verizon Wireless Walter Reed National Military Medical Center Wells Fargo Wheaton Franciscan Healthcare Wisconsin Early Autism Project Kaplan University students enjoy access to the CareerNetwork, a comprehensive resource available on the University portal. Launched in 2011, the CareerNetwork provides real-time, 24/7 support for jobseekers and answers to career-related questions. The CareerNetwork hosts a real-time, customized job feed for students based on their program of study and geographic area and provides tools to help them assess their interests. Working with employers, Career Services shares job leads and, in some cases, matches candidates with organizations. Jobseekers can view listings regularly and consult with their Kaplan University Career Services Advisor to brainstorm. Career-Exploration Opportunities We help students explore career opportunities through internships, externships, and work-experience programs. Many of our programs require students to gain handson experience. For example, as part of their required coursework students complete clinical, practicum, and/or externship experiences within their own community. Such experiences allow students to translate knowledge into practice, preparing them for entry-level positions within their field or for promotion in their established profession. We encourage students to gain experience in practical settings to acquire expertise and professional competencies. Many Kaplan University schools offer career-related opportunities on an elective basis. Individual schools manage their own internship/ externship programs, as these may involve the awarding of course credit. Job Titles Job titles as held by our graduates during the last 3 years include: Accountant Corrections Officer Financial Advisor Financial Analyst Financial Manager Financial Representative Fingerprint Examiner Help Desk Support Administrator IT Consultant Manager-Business Medical Administrative Assistant Medical Assistant Medical Coordinator Medical Lab Technician Network Administrator Network Engineer Network Technician Office Administrator Office Manager Office Specialist Paralegal Patient Care Technician Police Officer Processing Specialist Registered Nurse Sales Associate Security Officer Specialist Manager Systems Administrator Teacher Teacher s Aide Teacher s Assistant Therapist Web Developer/ Manager Youth Counselor School School of Business Concord Law School School of Graduate Education School of Health Sciences School of Information Technology School of Nursing School of Social and Behavioral Sciences Source: Office of the Provost, Kaplan University, 2014. CAREER-FOCUSED Learning OPPORTUNITIES Opportunity BS in Business Administration Capstone Externship EJD Practicum (students apply knowledge in a business setting) LEEP Practicum (students work with a supervising attorney) MA in Teaching Iowa Certification Student Teaching Internship I and II MS in Higher Education Students Services Practicum I and II AAS in Health Information Technology Externship/Capstone AAS in Medical Assisting Clinical AAS in Medical Assisting Externship and Evaluation AAS in Medical Office Management Externship and Evaluation AAS in Medical Transcription Practicum AAS in Information Technology Externship BS in Information Technology Externship Adult Gerontology Nurse Practitioner Clinical AS in Nursing (prelicensure) Clinical Doctor of Nursing Practice Executive Leader Practicum Family Nurse Practitioner Clinical Nurse Educator Practicum Nurse Informatics Specialist Practicum RN-to-BS in Nursing Capstone BS in Legal Studies Capstone Internship Option BS in Criminal Justice Internship MS in Psychology Addictions Specialization Practicum MS in Psychology Applied Behavioral Analysis Specialization Practicum MS in Psychology Industrial/Organizational Psychology Specialization Practicum Graduate Certificate in Addictions Practicum Graduate Certificate in Industrial Organizational Psychology Practicum Postgraduate Certificate in Applied Behavioral Analysis Practicum 26 Employment 27

SCHOOL AND PROGRAM OVERVIEW This section includes profiles of each school within Kaplan University and a table listing all academic programs. For school profiles, the following definitions apply: Persistence rate: A measure, expressed as a percentage, of students who persist toward completion of their academic program. The 2013 2014 persistence rate is calculated by comparing the numbers of students actively enrolled at the beginning and end of the academic year. Students who graduated during the academic year are counted as having persisted. Average course-level assessment score: A measure of student learning expressed as a numeral using Kaplan University s 0- to 5-point scale, where 0 signifies no progress and 5 indicates mastery. F-rate: A measure of student academic progress, the F-rate is calculated by dividing the count of all failing grades by the count of all transcripted grades, including passing grades, failing grades, and withdrawal grades, for all courses begun during the academic year. School of Business The School of Business focused on two key areas of innovation during the past academic year: preparing students for their careers and providing experiential learning opportunities. We ve added significant content to our programs to help students develop the professional competencies critical to their career success. We ve also offered externships and other forms of experiential learning that not only allow students to apply the skills acquired during their academic program but also build confidence and help individuals discover the full range of their capabilities. In a world where employers expect well-prepared employees, through these innovations we aim to better serve both our students and their prospective employers. Thomas C. Boyd, Dean and Vice President PhD, University of North Carolina, Chapel Hill MBA, Florida Atlantic University BS, Oakland University Distribution of degrees conferred persistence rate Associate s 981 51% Bachelor s 1,338 63% Certificate/Diploma 5 75% Master s 944 78% Graduate certificate 51 83% Average course-level assessment score f-rate Key highlights: We launched the Center for Excellence in Financial Services, a web-based organization providing thought leadership and information on starting or advancing a career in the financial services industry. This resource serves students, faculty, practitioners, employers, and corporate partners. We launched KapConsulting, a unique online consulting service delivering project-based consulting to small businesses and nonprofit organizations. Wholly managed by Kaplan University students, it provides entirely online externship opportunities. We earned programmatic accreditation from the Global Accreditation Council Project Management Institute for our Master of Business Administration and Master of Science in Management programs. In external testing of students graduating from our eight degree programs (whether in online, traditional, or blended settings), our students outperformed students from other business schools in 25 of 30 comparison categories. Undergraduate 3.71 4.6% Graduate 4.19 1.4% 28 School and Program Overview 29

Concord Law School Larry David, Interim Dean JD, Concord Law School of Kaplan University MBA, University of Southern California BA, Claremont McKenna College School of General Education Jodene DeKorte, Dean PhD, Colorado State University MA and BA, University of Northern Colorado Offering accessible, affordable online legal education, Concord Law School has operated under the auspices of Kaplan University since 2007. We offer these professional degree programs: Juris Doctor (JD), Executive Juris Doctor (EJD), and Master of Laws in Small Business Practice (LLM). Key highlights: We hosted a live panel discussion, The Needs Are Large and the Opportunities Great: Pro Bono Benefits All, with Concord alumni panelists discussing how new law graduates can help fill the gap in legal aid for low- and moderate-income households. We sponsored the Concord Alumni Solo & Small Firm Practitioner Conference, featuring sessions led by practicing Concord Law alumni. Students in our JD program sit for the 7-hour California First-Year Law Students Examination. With the June 2014 administration of the exam, 21.7 percent of Concord s students passed (against an overall examination pass rate of 23.1 percent). Many Concord students sit for the 3-day California Bar Exam, one of the nation s most challenging. Pass rates for part-time students are not published for comparison purposes. Of the Concord students who sat for the July 2013 exam, 19 percent of first-time takers and 8 percent of repeat takers passed. For the February 2014 exam, 47 percent of first-time takers and 19 percent of repeat takers passed. The theory of general education at Kaplan University revolves around the development of lifelong learners. We empower students to cultivate independent, critical, and rational thinking; express ideas coherently; develop new interests and academic skills; engage and communicate in a diverse and changing world; and undertake practical and professional applications. All of these are skills that employers value and that will benefit our students regardless of their chosen field. Key highlights: We created and implemented Professional Competencies across the University. The School also maintains and tracks the General Education Literacies and Professional Competencies University-wide. We sponsored our annual 3-day General Education Virtual Conference, where faculty and academic leaders shared best practices and new ideas about general education. More than 770 individuals participated in over 75 sessions. We published two issues of Capstone, a literary magazine, and hosted our annual Virtual Literary Festival. The School hosted more than 15 events for faculty to engage in professional development and academic discussions, such as Faculty Interdisciplinary Roundtable presentations, Humanities Book Club, Science Speaker series, the Celluloid Society, and faculty best practice sessions and discussions. degrees conferred* Average course-level assessment score f-rate JD 49 EJD 40 LLM 6 * Numbers of Concord graduates in this Academic Report may appear lower than those listed in previous years reports because graduates were calculated differently this year, based on status change date in the University s system of record. Undergraduate 3.46 12.4% Graduate 4.03 4.9% Note: Because the School of General Education does not confer degrees, it does not report the same statistics as other schools within Kaplan University. 30 School and Program Overview 31

School of Graduate Education Drew Ross, Dean PhD and MSc, Oxford University MS, University of Chicago BA, Bard College School of Health Sciences Keith L. Smith, Dean EdD, Seattle University MA, Fuller Theological Seminary MBA, City University The field of education can be broken out into two areas: K 12 and higher education. The recent tightening of available jobs in K 12 teaching appears to be loosening somewhat, with substantial demand for instructional design and technology skills and for teachers in the STEM curricula (Science, Technology, Engineering, and Math) as well. The outlook for higher education and adult learning is also strong, as Baby Boomers retire. The School of Graduate Education offers K 12 programs for practicing teachers, with a particular focus on math and science, as well as instructional technology programs for schools and corporations. Our graduate degrees and certificates in higher education studies emphasize college leadership, student affairs, and university-level teaching. Distribution of degrees conferred Average course-level assessment score persistence rate Master s 569 77% Graduate Certificate 62 83% f-rate Higher Education 4.44 4.2% Key highlights: We established alliances with two alternative teacher-certification organizations to offer our Master of Arts in Teaching students a career pathway to teaching in 10 states. In our Master of Arts in Teaching program in Iowa (MAT-Iowa), all 131 of our students passed the Praxis II: Principles of Learning and Teaching examination. Nearly half of those students (60 of 131) particpated in our Iowa Intern Program, securing paid teaching internships; 33 percent of interns secured teaching positions in the sciences and 18 percent in math. Health care continues to be a growth industry, with continuous and critical changes in technology, medical and allied health practice, health policy, and related government regulations. The need for skilled health professionals in a variety of roles is greater than ever and will continue to grow for the foreseeable future. We continue to develop new programs and revise current ones to meet this increased demand. With health care providers and related organizations defining role requirements around specific sets of competencies, we incorporate those competencies into our curriculum and instruction, equipping our graduates to best position themselves in the marketplace and to be successful in their career. Distribution of degrees conferred persistence rate Associate s 1,491 53% Bachelor s 926 61% Certificate/Diploma 102 66% Master s 353 73% Average course-level assessment score f-rate Key highlights: We pioneered Career Services touch points with students by incorporating presentations into our first-term undergraduate course, HS 100: Introduction to Health Sciences; we are currently adding midprogram and last-term presentations as well. The School achieved approval from the National Commission for Health Education Credentialing, Inc. (NCHEC) to offer category I continuing education contact hours to the Certified Health Education Specialists program. We transitioned the Bachelor of Health Care Administration and Bachelor of Nutrition Science programs to the 3+1 format (up to 75 percent of credit at the 100- to 200-course level, 25 percent at the 300-to 400-course level) to provide greater ease for community college graduate transfers. The School launched the online Medical Billing and Coding Certificate program to provide an educational pathway for obtaining an entry-level medical billing and coding position. Teacher Education 4.48 3.2% Undergraduate 3.68 8.9% Graduate 3.75 4.9% 32 School and Program Overview 33

School of Information Technology David B. DeHaven, Dean PhD, Capella University MBA, Auburn University MS, Kaplan University BS, George Mason University School of Nursing Chandice Covington, PhD, RN, PPCNP-BC, FAAN, Dean and Vice President PhD, University of Michigan MSN, University of Texas at Galveston BSN, University of Texas at Houston School of Nursing According to the U.S. Bureau of Labor Statistics, employment in the many fields of information technology (IT) is projected to rise by as much as 30 percent during this decade. The increase comes from rising demand for applications, information security, and the need to collect and analyze an ever-growing accumulation of data. The U.S. government is expected to increase its hiring of information security analysts to protect the nation s critical IT systems. Similarly, as the health care industry migrates to digital recordkeeping, the protection of personal data is a compliance need. The School of Information Technology relies on the skills of a strong IT advisory board as well as educators and employers to continually refresh our curriculum and program offerings. We provide a strong technical foundation in all of our degree programs. Our virtual desktop and lab environment offers industry-based tools with hands-on learning, where students can apply their knowledge and build the deep technical and business skills the workplace demands. Distribution of degrees conferred persistence rate Associate s 372 52% Bachelor s 457 61% Certificate/Diploma 30 56% Master s 207 83% Graduate Certificate 8 80% Key highlights: We updated 59 percent of our course offerings and conducted a series of innovative pilots and programs geared toward deepening student engagement and enhancing their learning experience. We added a Women in Computing chapter to our Association for Computing Machinery club, the world s largest national educational and scientific computing society, delivering resources that advance computing as a science and profession. We re proud to celebrate 10 years of nursing student success. As employers expectations rapidly escalate, Kaplan University remains even more committed to helping nurses successfully navigate the ever-changing demands and opportunities of their career. The Affordable Care Act will continue to increase emphasis on quality of care and patient outcomes as well as satisfaction with care levels. A landmark report from the Institute of Medicine and the Robert Wood Johnson Foundation calls for significant shifts in nursing and nursing education to procure a greater number of nurses with a bachelor s degree, from the current 50 percent rate to 80 percent plus double the number of nurses with a doctoral degree. The School of Nursing s partnerships with leading hospitals and care facilities, as well as our active involvement in national nursing organizations, keep our degree programs relevant and at the forefront of nursing s future. From the debut of our online Bachelor of Science in Nursing program in 2004 to the expansion of our Master of Science in Nursing program in 2009 and the introduction of our Doctor of Nursing Practice degree program in 2013, each program is taught by experienced practitioners and is regularly updated. Our goal is to produce nurses who are well prepared to serve the needs of patients, families, communities, and employers in the United States and globally. The programs are designed for working nurses who must also balance busy jobs and families. Key highlights: We introduced the accredited Prelicensure Bachelor of Science in Nursing (PL-to-BSN) in Maine and gained approval to offer the PL-to-BSN for licensed practical nurses and traditional students in Omaha, Nebraska. We were recognized by the Phi Rho Chapter of Sigma Theta Tau International Honor Society in the national organization s Showcase of Regional Excellence for responding to the needs of vulnerable populations. We continued to expand access to the Master of Science in Nursing: Family Nurse Practitioner and Adult-Gerontology Nurse Practitioner programs to meet the growing demand for primary care nurse practitioners in health care. A total of 207 students or graduates took the National Council of State Boards of Nursing licensure examination for registered nurses for the first time, with 60 percent passing. A total of 92 students or graduates took the Council s licensure exam for practical nurses for the first time, with 84 percent passing. Our nurse practitioner graduates achieved an 85 percent pass rate on the American Nurses Credentialing Center examination. Average course-level assessment score f-rate Distribution of degrees conferred persistence rate Average course-level assessment score f-rate Undergraduate 4.23 12.4% Associate s 205 79% Undergraduate 3.91 3.7% Graduate 4.11 4.9% Bachelor s 570 76% Graduate 3.92 2.0% Certificate/Diploma 50 89% Master s 157 76% Graduate Certificate 9 83% 34 School and Program Overview 35

School of Professional and Continuing Education Andrew Temte, CFA, Interim Dean PhD and MA, University of Iowa BA, University of Wisconsin La Crosse School of Social and Behavioral Sciences Sara Sander, Dean and Vice President PhD, Capella University MA and BA, University of Arkansas, Fayetteville The School of Professional and Continuing Education (PACE) provides license preparation, professional development, and continuing education programs to businesses and individuals in the financial analysis, financial planning, wealth management, insurance, mortgage, and brokerage industries. Through classroom instruction and hundreds of online courses, PACE serves more than 2,000 business-to-business clients, including 48 of the top 50 U.S. financial institutions. Our offerings include Kaplan Financial Education securities, insurance, CFP certification, professional development, and certificate programs. Offering professional development and continuing education rather than degree programs, PACE measures activity in terms of registrations. During the 2013 2014 academic year, more than 285,000 student registrants used over 500,000 PACE learning products and services. Key highlights: About one-third of the nearly 6,500 people in the United States who take the national CFP exam choose Kaplan Professional Education to prepare (making Kaplan the largest provider of this product). Nationally, fewer than two-thirds of the test takers pass. In contrast, nearly three-fourths of those who prepare with Kaplan s program pass the exam. We garnered an 8.2 percent response rate to our 2013 survey of more than 10,000 recent users of our Securities Licensing and Insurance Licensing and Continuing Education product lines. Of those respondents, 92.5 percent said they would recommend Kaplan s materials. In 2013, the schools of Arts & Sciences, Legal Studies, and Public Safety merged to become the School of Social and Behavioral Sciences. The School offers graduate, undergraduate, and certificate programs designed to respond to and affect human societal causes, issues, and needs. Our curriculum equips students to translate theory into practice in their chosen career. Our graduates set a high standard in their chosen professions. Key highlights: We launched an internship elective option for all bachelor s degree students. The School received approval from the Behavior Analyst Certification Board, Inc. (BACB ) for the fourth edition course sequence as meeting the coursework requirements for eligibility to take the Board Certified Assistant Behavior Analyst Examination for BS in Psychology program graduates and the Board Certified Behavior Analyst Examination for MS in Psychology program graduates. We established the Tau Upsilon Alpha National Honor Society for Human Services students. The School received approval for the BS and MS in Psychology programs as premier education providers from the National Association for Alcoholism and Drug Abuse Counselors (NAADAC). We launched the Environmental Policy Center located at www.kaplanuniversity.edu/ environmental-policy-center.aspx. We hosted a distinguished speaker series for our students that included Dan Smith, former Michigan House Representative; Mark Eiglarsch, trial commentator and Miami defense attorney; and Dane Ally, the senior law lecturer with the Tschwane University of Technology, South Africa. The School was recognized at the 2014 National Professional Development Symposium as being Fire and Emergency Services Higher Education (FESHE) approved. Distribution of degrees conferred persistence rate Arts & Sciences Legal Studies Public Safety Arts & Sciences Legal Studies Public Safety Associate s 742 335 554 50% 53% 48% Bachelor s 1,211 358 777 57% 58% 59% Certificate/Diploma 6 68 24 13% 63% 43% Master s 419 167 226 68% 74% 72% Graduate certificate 25 72% Average Course-level Assessment F-rate Arts & Sciences Legal Studies Public Safety Arts & Sciences Legal Studies Public Safety Undergraduate 3.69 3.94 4.09 10.3% 9.5% 9.7% Graduate 3.98 3.91 3.85 6.6% 6.8% 7.1% 36 School and Program Overview 37