The U.S. Education Department wants Purdue University to absorb the debts and liabilities of Kaplan University as a condition for approving the state school’s controversial purchase of the for-profit college, a request that critics say could place Indiana taxpayers at risk.
Purdue will pay $1 for Kaplan’s academic operations. The for-profit company will provide a range of services in exchange for 12.5 percent of the NewU’s total revenue. But Kaplan will get paid only after the new school generates enough revenue to cover its operating costs and other expenses.
https://www.washingtonpost.com/news/grade-point/wp/2017/10/06/a-hiccup-in-purdues-acquisition-of-for-profit-kaplan-university/?tid=ss_tw&utm_term=.2084f8d9ee26