The on-line scam called K12 Inc.

While children play in the summer heat, parents in Massachusetts and 31 other states across the country are being bombarded with advertisements for the online “learning” giant, K12 Inc., a for-profit virtual school system that is part of the ongoing movement to divert public funds away from traditional schools and give the taxpayer money to privately owned and operated charter and on-line entities that supporters claim are the future of public education in the United States.

But the truth surrounding these corporate education reform strategies fall far short of their advertising claims, a fact that is especially true when it comes to the growing online or virtual charter school industry.

As California’s Mercury News explained in a major investigative series this past spring,

The TV ads pitch a new kind of school where the power of the Internet allows gifted and struggling students alike to “work at the level that’s just right for them” and thrive with one-on-one attention from teachers connecting through cyberspace. Thousands of California families, supported with hundreds of millions in state education dollars, have bought in.

But the Silicon Valley-influenced endeavor behind the lofty claims is leading a dubious revolution. The growing network of online academies, operated by a Virginia company traded on Wall Street called K12 Inc., is failing key tests used to measure educational success.

Fewer than half of the students who enroll in the online high schools earn diplomas, and almost none of them are qualified to attend the state’s public universities.

In fact, a series of academic studies have revealed that despite collecting hundreds of millions of dollars in taxpayer money, most virtual schools are utterly failing when it comes to actually educating children.

Reporting on a major study conducted in 2015 by Stanford University, the Washington Post wrote,

Students in the nation’s virtual K-12 charter schools — who take all of their classes via computer from home — learn significantly less on average than students at traditional public schools, a new study has found.

The online charter students lost an average of about 72 days of learning in reading and 180 days of learning in math during the course of a 180-day school year, the study found. In other words, when it comes to math, it’s as if the students did not attend school at all.

In addition to outright corruption, the widespread academic failures plaguing virtual charter schools are leading to numerous state investigations into a significant number of the on-line schools, including some owned and operated by K12 Inc.

For example, earlier this month California Attorney General Kamala Harris announced that the Bureau of Children’s Justice and False Claims Unit of the California Department of Justice had reached a settlement agreement with K12 Inc. and its 14 affiliated California Virtual Academies over the company’s “violations of California’s false claims, false advertising and unfair competition laws.“

Covering the settlement agreement, the Mercury News reported;

Facing a torrent of accusations, a for-profit company that operates taxpayer-funded online charter schools throughout California has reached a $168.5 million settlement with the state over claims it manipulated attendance records and overstated its students’ success.

The deal, announced Friday by Attorney General Kamala Harris, comes almost three months after the Bay Area News Group published an investigation of K12 Inc., a publicly traded Virginia company, which raked in more than $310 million in state funding over the past 12 years operating a profitable but low-performing network of “virtual” schools for about 15,000 students.

[…]

Harris’ office found that K12 and the 14 California Virtual Academies used deceptive advertising to mislead families about students’ academic progress, parents’ satisfaction with the program and their graduates’ eligibility for University of California and California State University admission — issues that were exposed in this news organization’s April report.

The settlement could help spur legislation that would prevent for-profit companies like K12 from operating public schools in California.

The Attorney General’s office also found that K12 and its affiliated schools collected more state funding from the California Department of Education than they were entitled to by submitting inflated student attendance data and that the company leaned on the nonprofit schools to sign unfavorable contracts that put them in a deep financial hole.

“K12 and its schools misled parents and the State of California by claiming taxpayer dollars for questionable student attendance, misstating student success and parent satisfaction and loading nonprofit charities with debt,” Harris said in a statement. “This settlement ensures K12 and its schools are held accountable and make much-needed improvements.”

K12 Inc. and its 14 “non-profit” virtual charter schools enroll about 13,000 students in California.  According to the Attorney General’s investigation, only about one in three students in the K12 Inc. schools actually graduate. The statewide graduation rate for California’s public schools is close to 80 percent.

The California controversy is just one of many surrounding K12 Inc.

Overall, about 315,000 students in the United States attend “virtual” schools and like those in California, the vast majority aren’t getting the quality education that the taxpayers are paying for.

But that doesn’t even slow down the cash flow.

In 2015, K12’s revenue exceeded $948 million, a 5.1 percent increase over the preceding year. Since its inception, K12 has collected over $5 billion dollars for its investors and executives.

K12’s false claims may have cost it money in California, but it continues to make similar claims of success in advertising that is presently running in a number of states.

If there was real truth in advertising, the K12 and other virtual charter schools would be using the tag line,

“America’s Virtual Schools – Ripping off the taxpayers, not even coming close to providing children with an adequate education.”

Check back for more on K12 and the virtual charter school industry.

  • jjandk

    On-line schools are not the problem! They serve a demographic that is not known to most people. Homebound students (due to illness or injury) and elite athletes have only 3 choices; expensive private tutors, homeschooling, or on-line learning. My son left home at 15 to play for a juniors hockey team in a different state. Since our home state of KY had no on-line public school learning option we had to pay for an on-line high school for 3 years. On-line education takes discipline and like anything else, you get out of it what you put in. He graduated and scored very high on ACT and SAT tests and is now poised to go NCAA Div. I . This article points only to an apparent lack of ‘truth in advertising’ by K12. We didn’t use K12 because they are not NCAA certified and we still would have had to pay for it. I wish we lived in a state that had public school on-line education since we essentially had to pay twice for his high school, through taxes and out of pocket. This is a disingenuous bashing of on-line education in an attempt to further tar and feather charter schools.

  • chris doeller

    I keep hearing the adverts for this, K12, schooling on my NPR station, I looked them up, as I have a great nephew who is very much into mechanical activities. I fear that his present parochial school path will never provide support or have technical programs, so I have been looking up alternatives. The K12 program seems to a liberal arts or classical education program given through an internet platform. No hands on, no interaction with others. To be fair, very few new schooling alternatives and even the older & more encountered alternatives, such as Montessori, are no more than variations on the liberal arts theme.