UT Arlington President Resigns after investigation into OPM Vendor Dealings

  • Karbhari, the president of the University of Texas at Arlington, announced Thursday that he would resign from his role, effective immediately, following the release of an investigation into financial dealings between the UT president and an online program management company (OPM).
  • The investigation claims that the university was accepting unqualified students into its nursing program through a program called Direct Admit, before evaluating their academic credentials.
  • The vendor leadership significantly influenced the admissions decisions. According to a senior consultant at the Association of Governing Boards (AGB), OPM companies are often paid a percentage of net tuition income. Therefore, higher enrollments typically lead to a better financial deal for the OPM.
  • The consultant made the following recommendation: “Don’t outsource academic quality control, don’t outsource admissions standards and make sure that the processes of the OPM are consistent with the institution’s core values.”
  • Karbhari disputed the third-party report stating: “the investigation report is so flawed due to lack of evidence, insufficient fact gathering, use of factually inaccurate data, and mischaracterizations, that it is impossible to give it any credence and should be rejected outright.”