Marinello Schools of Beauty Comes to an Ugly End

March 11, 2016

February 10, 2016

Marinello press release Feb 4 2016 “Our priority now is to provide the best possible outcome for our students. We are working closely with our state educational agencies, our accrediting commission, and well respected schools to provide a smooth transition for our students so they are able to complete their education and achieve the life they have worked so hard for.”

Marinello recently celebrated its 110th year in business. Of course, this claim is the kind of “creative marketing” that characterizes the for-profit vocational education industry. B&H Education, a publicly traded “education company” located in Beverly Hills, bought the school brand and its 13 campuses in 2004. That purchase was followed by rapid expansion from 13 to 57 campuses. Twelve years later there are no more Marinello Schools of Beauty. Marinello was accredited by the National Accrediting Commission of Career Arts and Sciences.

With each new action in the education industry anticipation accelerates. Which of the predatory for-profit schools will be next to shut down operations? And which path will they choose: an orderly teach-out that enables students in the middle of their educations to complete by enrolling in another school peddling the same froth? Or will the next schools just shut down operations like 4D College did in June 2015, taping a typed half page on a locked door announcing students and employees should just go home. For Marinello, 4D and Le Cordon Bleu students and staff, school is out forever.

The pace is certainly quickening. DeVry is being investigated by the USDE for fraudulent recruitment practices. Apollo just announced they have a buyer despite losing 75% of its share price – APOL – and more than 50,000 students in 2015. The owner of the 2015 Super Bowl site has been under investigation by the Federal Trade Commission for deceiving students about job placement rates it turns out are not available to their graduates.

Marinello has been sued for fraud in the recent past. In 2013 a group of Connecticut students complained they were encountering “roadblocks” to graduation. When interviewed, the Marinello Regional Director told the local news team the Marinello Schools were “good value for the students’ money” ($19000 for the cosmetology program) and the schools do all they can to help students complete on time.

What does their own self-reported data show?

We took a look at the annual reports data which Marinello filed in California with the Bureau of Private and Postsecondary Education (BPPE). California is home to approximately one third of all the private postsecondary schools in the nation including 18 Marinello operations. Here is what we found.

In 2014 Marinello enrolled 5948 students of whom 2549 completed on time. That computes to 43%. However, Marinello reported completion rates for eight programs that averaged 60%. OK. We came up with 45% (number available for graduation – 5948 – divided by the number who graduated (2651). We included the 102 who graduated at 150% time.

Marinello reported to BPPE 2521 graduates were “available for employment” of whom 1652 were “employed in the field.” Review these definitions below. 1652 of those available – 2521 – were employed (66%), i.e., found work in their field according to Marinello. However, if we go back to the number who were available to graduate from the beauty programs – 5948 – and divide that by the 1652 who graduated and found jobs, the placement rate comes out to less than 30%. Big difference. We believe it is more accurate to find out what are the real chances that starting the program will lead to a job. With Marinello, that figure is less than 30%.

More funny math: Marinello reported that 3252 graduates took a licensing exam in 2014 in California. 2142 passed which calculates to a 65% pass rate. However, Marinello came up with an 82% pass rate. They averaged the pass rates which would my middle school teacher would assign me an “F”. The math seldom works out when we do our own arithmetic calculations.

MSB table crop

students started – number of students who began the program minus the number of students who have died, been incarcerated or been called to active military duty

available for grad– number of students who completed the program within 100% of the published program period

graduate on time – number of graduates divided by the number of students availabl7e for graduation.

completion % – number of graduates at 100% and 150% time minus the number of graduates that either died, etc.

grads available for employment – number of graduates employed in the field divided by the number of graduates available for employment

placement rate/percent – number of graduates who are gainfully employed within six months of graduation in a position for which the skills obtained through the employed in the field – education and training provided by the institution are required or provided a significant advantage to the graduate in obtaining the position

Caveats: There are 18 Marinello schools in California. The BPPE Annual Report table lists eight Marinello programs with just under 6,000 students. The Feb 4 2016 article reported 1647 student in three California campuses and only 4300 in the nation.

This report has been prepared by Steven H. Stumpf, EdD / Health Core Possibilities / 818 571 3930

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