Lincoln Educational Services Corporation and its subsidiaries provide diversified career-oriented postsecondary education to recent high school graduates and working adults.
The company, which operates 21 campuses in 12 states, has entered into leases for two new campuses: one in Houston, Texas, with programs expected to begin in the second half of 2025, and one in Hicksville, New York, with programs expected to begin by the end of 2026. The company offers programs in skilled trades (which incl...
Lincoln Educational Services Corporation and its subsidiaries provide diversified career-oriented postsecondary education to recent high school graduates and working adults.
The company, which operates 21 campuses in 12 states, has entered into leases for two new campuses: one in Houston, Texas, with programs expected to begin in the second half of 2025, and one in Hicksville, New York, with programs expected to begin by the end of 2026. The company offers programs in skilled trades (which include Heating, Ventilation, and Air Conditioning ('HVAC'), welding, computerized numerical control, and electrical and electronic systems technology, among other programs), automotive technology, healthcare services (which include nursing, dental assistant, and medical assistant, among other programs), and hospitality services and information technology (which include culinary, aesthetics, and information technology programs). The schools operate under the brands Lincoln Technical Institute, Lincoln College of Technology, and Nashville Auto Diesel College.
Most of the company's campuses serve major metropolitan markets, and each typically offers courses in multiple areas of study. Five of the campuses are destination schools, which attract students from across the United States, and in some cases, from abroad. The company's other campuses primarily attract students from their local communities and surrounding areas. All of the campuses are nationally accredited and are eligible to participate in federal financial aid programs administered by the U.S. Department of Education (the 'DOE') and applicable state education agencies and accrediting commissions, which allow students to apply for and access federal student loans, as well as other forms of financial aid.
The company manages its business, evaluates performance, and allocates resources based on two reportable business segments, Campus Operations and Transitional:
Campus Operations - The Campus Operations segment includes campuses that are continuing in operation and contribute to the company's core operations and performance.
Transitional - The Transitional segment refers to campuses that are marked for closure and are currently being taught-out, in addition to campuses that are held-for-sale or sold. As of December 31, 2024, the net assets for the Summerlin, Las Vegas campus were classified as held for sale, with operating results classified within the Transitional segment. The sale of the campus was consummated effective January 1, 2025.
As of December 31, 2024, the company had 15,138 students enrolled at 21 campuses. The company's average enrolment was 14,426 students for the year ended December 31, 2024.
The company provides its students with the highest quality career-oriented training available for its areas of study in its markets, thereby serving students, local employers, and their communities.
The company offers programs in areas of study that are typically underserved by traditional providers of postsecondary education and for which there exists significant demand among students and employers. Furthermore, the company's convenient class scheduling, career-focused curricula, and emphasis on job placement offer its students valuable advantages that have been previously unaddressed by the traditional academic sector. By combining virtual training with traditional classroom-based training led by experienced instructors, the company offers its students a unique opportunity to develop practical job skills in many of the key areas of expected job demand.
Business Strategy
The company's key strategies are to replicate programs and expand existing areas of study; maximize the utilization of existing facilities; expand geographically; and expand the teaching platform.
Programs and Areas of Study
The company structures its program offerings to provide its students with a practical, career-oriented education and position them for attractive entry-level job opportunities in their chosen fields. The company's diploma/certificate programs typically take between 27 to 104 weeks to complete. The company's associate degree programs typically take between 69 to 94 weeks to complete. As of December 31, 2024, all of the company's schools offered diploma and certificate programs, and ten of its schools are approved to offer associate degree programs. In order to accommodate the schedules of its students and maximize classroom utilization at some of its campuses, the company typically offers courses four to five days a week in three shifts per day and starts new classes every month. The company updates and expands its programs frequently to reflect the latest technological advances in the field, providing its students with the specific skills and knowledge required in the current marketplace. Classroom instruction combines lectures and demonstrations by its experienced faculty with comprehensive hands-on laboratory exercises in simulated workplace environments.
Skilled Trades: The company's skilled trades programs are 32 to 81 weeks in length. The company's skilled trades programs include electrical, heating and air conditioning repair, welding, computerized numerical control, and electronic and electronic systems technology. Graduates of the company's programs are qualified to obtain entry-level employment positions, such as electrician, CNC machinist, cable installer, welder, wiring and heating, ventilating and air conditioning, or HVAC installer. The company's graduates are employed by a wide variety of employers, including residential and commercial construction, telecommunications installation companies, and architectural firms. As of December 31, 2024, the company offered skilled trades programs at 17 campuses.
Automotive Technology: The company's automotive technology programs are 52 to 98 weeks in length. Graduates of the company's programs are qualified to obtain entry-level employment ranging from positions as technicians and mechanics to various apprentice-level positions. The company's graduates are employed by a wide variety of companies, ranging from automotive and diesel dealers to independent auto body paint and repair shops, to trucking and construction companies. As of December 31, 2024, the company offered programs in automotive technology at 13 campuses. The company's campuses in East Windsor, Connecticut; Nashville, Tennessee; Grand Prairie, Texas; Indianapolis, Indiana; and Denver, Colorado are destination campuses, attracting students throughout the United States, and in some cases, from abroad.
Health Sciences & Information Technology: The company's health science & information technology programs are 27 to 104 weeks in length. The company's health sciences graduates are employed by a wide variety of employers, including hospitals, laboratories, insurance companies, and doctors' offices. The company's IT graduates obtain entry-level positions with both small and large corporations. As of December 31, 2024, the company offered health science programs at 12 of its campuses and IT programs at four campuses.
Marketing and Student Recruitment
The company utilizes a variety of marketing and recruiting methods to attract students and increase enrollment. The company's marketing and recruiting efforts are targeted at prospective students who are high school graduates entering the workforce, or who are underemployed or unemployed and require additional training to enter or re-enter the workforce.
Marketing and Advertising: The company utilizes a fully integrated marketing approach in its lead generation and admissions process that includes the use of traditional media, such as television, radio, billboards, direct mail, a variety of print media, and event marketing campaigns intended to raise brand awareness. In addition, the company continually grows and enhances its digital marketing efforts, which include paid search, paid and organic social media, search engine optimization, online video, and display advertising, and pay-per-lead channels. These digital channels drive the majority of the company's new student leads and enrollments. The company's fully integrated marketing campaigns direct prospective students to contact the company directly or visit its website or other customized landing pages on the internet where they will find details regarding its programs and campuses and can request additional information regarding the programs that interest them. Prospective students may also apply for admission online. The company's internal systems enable it to closely monitor and track the effectiveness of each marketing execution on a daily or weekly basis and make adjustments accordingly to enhance its efficiency and limit its student acquisition costs.
Referrals: Referrals from students, high school counselors, and satisfied graduates and their employers have historically represented approximately 11.0% of the company's new student starts. The company's school administrators actively work with its current students to encourage them to recommend its programs to prospective students. The company endeavors to build and retain strong relationships with high school guidance counselors and instructors by offering annual seminars at its training facilities to further familiarize these individuals with the strengths of its programs.
Recruiting: The company's recruiting efforts are conducted by a group of approximately 278 campus-based and field representatives who meet directly with prospective students during presentations conducted at high schools, in the prospective students' homes, or during their visit to one of its campuses. The company also recruits adult career-seekers or career-changers through its campus-based representatives.
During the year ended December 31, 2024, the company recruited approximately 21% of its students directly out of high school. Field sales continue to be a large part of the company's business, and developing local community relationships is one of its most important recruiting functions.
Student Admissions, Enrollment, and Retention
Admissions: To attend the company's schools, students must have either a high school diploma or a high school equivalency certificate (or General Education Development Certificate, GED). In addition, students must complete both an admissions interview and learner assessment. The company takes admissions requirements very seriously, as they are the best indicators of its students' likelihood for program success and completion, leading to successful employment in their chosen industry. The learner assessment is a questionnaire designed to discover challenges and help the company to address them prior to the student attending. While each of the company's programs has different admissions criteria, the company screens all applications and counsels prospective students on the most appropriate program to increase the likelihood that they complete the requisite coursework and obtain and sustain employment following graduation.
Enrollment: The company enrolls students continuously throughout the year, with its largest classes enrolling in late summer or early fall following high school graduation. As of December 31, 2024, the company had 15,138 students enrolled at 21 campuses, and the company's average enrollment during the fiscal year ended December 31, 2024, was 14,426 students.
Retention: To maximize student retention, the staff at each school is trained to recognize the early warning signs of a potential drop and to assist and advise students on academic, financial, and employment matters. The company monitors its retention rates by instructor, course, program, and campus. When the company becomes aware that a particular instructor or program is experiencing a higher-than-normal dropout rate, it quickly seeks to determine the cause of the problem and attempts to correct it. When the company identifies that a student is having trouble academically, it offers tutoring. As the company moved to online delivery of instruction, it saw a slight decline in its student retention rate, but this is temporary and will improve as its faculty becomes better skilled at hybrid teaching. To ensure that this happens, the company has developed online teacher training for all faculty.
Job Placement
Assisting the company's graduates in securing employment after completing their program of study is critical to its mission as a postsecondary educational institution, as well as to its ability to attract high-quality students and enhance its reputation in the industry. Accordingly, the company dedicates significant resources to maintaining an effective graduate placement program. The company's non-destination schools work closely with local employers to ensure that the company is training students with skills that local employers seek. Each school has an advisory council composed of local employers who provide the company with direct feedback on how well it is preparing its students to succeed in the workplace. This enables the company to tailor its programs to the marketplace. The placement staff in each of the company's destination schools maintains databases of potential employers throughout the country, allowing the company to more effectively assist its graduates in securing employment in their career fields upon graduation. Throughout each year, the company holds numerous job fairs at its facilities, where it provides the opportunity for its students to meet and interact with potential employers. The company also assists students with resume writing, interviewing, and other job search skills.
In addition, many of the company's schools have internship programs that provide its students with opportunities to work with potential employers prior to graduation. For example, some of the students in the company's automotive programs have the opportunity to complete a portion of their hands-on training in an actual work environment. Also, some of the company's students in health sciences programs are required to participate in an externship program in which they work in the field as part of their career training. Further, the company has formed industry relationships with several Fortune 500 companies to assist them with their hiring needs. The company provides these companies with various services, including providing graduating student candidates for interviews and offering company-specific training to selected individuals that accelerates their onboarding. These industry relationships not only provide the company's students with career opportunities, which may include signing bonuses and tuition assistance plans, but also benefit the company by sometimes providing equipment donations, scholarships, and advice that enable the company to design its curricula to better meet industry needs.
Regulatory Environment
The company is subject to oversight by other federal agencies, including the Consumer Financial Protection Bureau ('CFPB'), the Federal Trade Commission ('FTC'), and the Departments of Veterans Affairs ('VA') and Defense ('DOD').
The various approvals granted by the regulatory entities to which the company is subject are what collectively allow its schools to operate and to participate in a variety of government-sponsored financial aid programs that assist students in paying for their education, the most significant of which are the federal student aid programs administered by the DOE under the Higher Education Act of 1965, as amended (the 'HEA').
The HEA and the regulations of the DOE specify extensive criteria and numerous standards that the company must satisfy in order to participate in federal financial aid programs under Title IV of the HEA ('Title IV Programs').
All of the company's schools are approved to offer both distance and in-person learning by the DOE, ACCSC, and the states in which they are physically located. In addition, the company's Indianapolis school is an institutional participant in the National Council for State Authorization Reciprocity Agreement ('NC-SARA'), which is a voluntary agreement among member states that enables participating schools who are authorized by the state in which they are physically located to offer distance education in other participating states without obtaining additional authorization in those states.
The company's Indianapolis school also is an institutional participant in the National Council for State Authorization Reciprocity Agreement ('NC-SARA'), which enables it to offer distance learning to students located in other states. The company's other schools have entered into a consortium agreement with its Indianapolis school that has been approved by ACCSC and applicable state education agencies, and that enables students enrolled in one of the other schools to take courses online through the Indianapolis school.
The practical nursing program offered at three of the company's campuses in New Jersey also is subject to the requirements of the New Jersey Board of Nursing ('NJBON'), a state occupational agency.
As of December 31, 2024, 21 of the company's campuses were institutionally accredited by the Accrediting Commission of Career Schools and Colleges (the 'ACCSC'), which is recognized by the DOE.
Some of the company's students receive financial aid from federal sources other than Title IV Programs, such as programs administered by the VA.
As requested, the company provided written confirmation of its intent to comply with the Principles to the VA in June 2012. Each of the company's institutions has a memorandum of understanding ('MOU') with the DOD.
The company is required to comply with the Principles of Excellence (Principles) to continue recruitment activities at military installations.
The company's schools are subject to audits, program reviews, site visits, and other reviews by various federal and state regulatory agencies, including but not limited to, the DOE, the DOE's Office of Inspector General ('OIG'), state education agencies and other state regulators, the VA, and other federal agencies (such as, for example, the FTC or the CFPB), and by the company's accrediting commissions. In addition, each of its institutions must retain an independent certified public accountant to conduct an annual compliance audit of the institution's administration of Title IV Program funds.
As a postsecondary educational institution, the company is subject to a broad range of consumer protection and other laws, such as recruiting, marketing, the protection of personal information, student financing, and payment servicing, enforced by federal agencies, such as the FTC and CFPB, and various state agencies and state attorneys general. The company devotes significant effort to complying with state and federal consumer protection laws.
History
Lincoln Educational Services Corporation was founded in 1946. The company was incorporated in New Jersey in 2003.
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