Not For Profit College Board Getting Rich as Fees Hit Students

Janet Lorin

When Gaston Caperton was recruited to run the College Board, owner of the SAT entrance exam, he said he didn't want to just run "a testing company."

Founded by Harvard and 11 other universities in 1900 to create a standardized test to admit students based on merit rather than family connections, the College Board by 1999 was facing cash-flow problems.

Caperton turned the nonprofit company into a thriving business, more than doubling revenue to $660 million by boosting fees, expanding the Advanced Placement program and the sale of names of teenage test-takers to colleges. A former West Virginia governor, he persuaded 11 states to cover fees for a preliminary SAT in the 10th grade.

Posted by Jim Zellmer at August 19, 2011 4:11 AM
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