Monday, March 7, 2011

For-Profit Colleges -- Still Partying Like It's 1999

Just posted on The Huffington Post College section:

For-Profit Colleges - Still Partying like it's 1999

I was dreamin' when I wrote this so sue me if I go 2 fast. Prince, 1999

So where are we in the great debate on whether to regulate for-profit colleges?

From an owner of a for-profit college: I'm a businessman out to make a profit. Truly, I don't care about the well-being of the students.


Data from Senator
Harkin's Oversight Investigation of Federal Dollars Going to For-Profit Schools

fyi - University of Phoenix is a subsidiary of The Apollo Group Inc., listed above

Story Update 8/24/11

Party Ends at For-Profit Schools - Wall Street Journal

For-profit colleges are facing a tough test: getting new students to enroll. New-student enrollments have plunged—in some cases by more than 45%—in recent months, reflecting two factors: Companies have pulled back on aggressive recruiting practices amid criticism over their high student-loan default rates. And many would-be students are questioning the potential pay-off for degrees that can cost considerably more than what's available at local community colleges.

Story Update 8/16/11

Last Monday, the Department of Justice filed a complaint against Education Management Corp. (EDMC), marking the first time the federal government has gotten involved in one of many cases against such for-profit colleges.

The move represents an escalation in a battle against for-profit colleges, which have been targeted because they are funded largely by students with federal loans, who are far more likely to default than students at non-profit colleges and universities.

The complaint against EDMC, which operates schools in 105 locations under the names such as Art Institute, Argosy University, Brown Mackie College and South University, alleges the company paid its recruiters based on how many students they enrolled.

"EDMC has created a 'boiler room' style sales culture and has made recruiting and enrolling new students the sole focus of its compensation system," the government says in its 122-page complaint.

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