For-profit higher education in the United States

Education in the United States
Education portal
United States portal

For-profit higher education in the United States (known as for-profit college or proprietary education in some instances) refers to higher education educational institutions operated by private, profit-seeking businesses. Historically, most colleges and universities in the US have been non-profit, but for-profit institutions rapidly grew in number and size from 1972 to 2009. This also includes culinary arts schools and certain vocational for-profit schools. Although supporters of for-profit higher education have argued that the profit motive encourages efficiency, the for-profit educational industry has received severe negative criticism because of its sales techniques, high costs, and poor student outcomes. In some cases operators of for-profit colleges have faced criminal charges or other legal sanctions.[1][2][3][4][5]

Since 2010, for-profit colleges have received greater scrutiny and negative attention from the US government, state Attorneys General, the media, and scholars.[6][7] However, the Donald Trump administration and Secretary of Education Betsy DeVos have accused the government of regulatory overreach and have loosened regulations.[8]

In 2016, research by Treasury Department economist Nicholas Turner and George Washington University economist Stephanie Riegg Cellini found that students who attended for-profit colleges would have been better off not going to college at all, or attending a community college (which are non-profit); put differently, the for-profit colleges left students worse off than they were when they started. The National Bureau of Economic Research paper was based on an analysis of 567,000 students who attended for-profit colleges from 2006 to 2008. More than 80% carried student loan debt.[9]

The Department of Veterans Affairs has also reported that veterans using the GI Bill for education submitted more complaints about for-profit colleges, particularly University of Phoenix, ITT Technical Institute, Devry University, and Colorado Technical University, than their public or private non-profit counterparts.[10]

According to the National Center for Education Statistics, the 12-year student loan default rate for for-profit colleges is 52 percent.[11] The 12-year student loan default rate for African Americans going to for-profit colleges is 65.7 percent.[12]

The advocacy group the Debt Collective has created its own, unofficial "Defense to Repayment App" that allows former students of schools accused of fraud to pursue debt cancellation.[13] The applications generated through the Debt Collective's online form were cited by the Department of Education in a Federal Register notice, which said that "a need for a clearer process for potential claimants" arose due to the submission of over 1000 defense to repayment claims by "a building debt activism movement".[14]

List of for-profit corporations and their brands

According to the National Center for Education Statistics, there were approximately 3,200 for-profit institutions in the US in 2015.[15]

Many for-profit institutions are subsidiaries of larger companies. The following is a list of for-profit companies in the higher education sector:

Laureate Education[17] and Apollo Education Group[18] have become powerful international education corporations. Apollo Education Group is now part of Apollo Global Management.

Laureate, the largest US-based for-profit higher educator, is reported to have more than one million students worldwide, in North America, Latin America, Europe, the Middle East, Africa, and Asia Pacific.[19] Former President of the United States Bill Clinton has been an honorary Chancellor of the for-profit enterprise.

Politics and political lobbying

Politics and lobbying play a significant part in the history of US for-profit school growth.[20][21] The for-profit education industry has spent more than $40 million on lobbying since 2007[22] and $36 million since 2010.[23]

For-profit education lobbying grew from $83,000 in 1990 to approximately $4.5 million in its peak year of 2012.[24]

The most significant industry lobby is Career Education Colleges and Universities (CECU), previously known as The Association of Private Sector Colleges and Universities (ASPCU). Before 2010, the organization was known as the Career College Association.[25]

The Cato Institute's Center for Educational Freedom also supports for-profit higher education.[26][27]

Political operatives who have had close ties to for-profit education include Bill Clinton,[28] Lanny Davis,[29] Heather Podesta,[7][30] Urban League President Marc Morial,[31] former Ted Kennedy aide Jane Oates,[32] former Defense Secretary Leon Panetta,[31] and National Action Network's civil rights activist Al Sharpton.[33] In 2014, APSCU hired Michael Dakduk, former head of Student Veterans of America.[34]

From 2010 to 2015, Bill Clinton received at least $17.5 million from Laureate Education, the parent company of Walden University.[35]

In March 2017, Secretary of Education Betsy DeVos appointed Robert Eitel, a former Career Education Corporation and Bridgepoint executive, as a special advisor.[36] In July 2018, DeVos delayed the implementation of a rule intended to help students receive debt forgiveness if they were cheated by their college.[37] In September 2018, the U. S. District Court for the District of Columbia ruled against DeVos, finding the delay of implementation to be unlawful.[38]

Recruiting, advertising, and lead generators

The for-profit college industry has spent billions of dollars on student recruiting, advertising, and buying leads for recruitment.[39][40] In 2011, for example, University of Phoenix, ITT Tech, Devry, and Capella together spent more than $100,000,000 on Google Ads.[41] Several Wall Street-backed schools spend large amounts on advertisements on day time and late night television.[42] In 2012, Apollo Group, the parent company of University of Phoenix, reportedly spent $665,000,000 on advertising and marketing.[39] Lead Generators are companies that find potential students ("leads") and provide the consumer's personal information and preferences to for-profit schools.[43][44][45]

History of for-profit higher education

Origins

For-profit colleges in the US have their origins in the Colonial Era.[46][47]

1940s to mid 2000s

In the 1940s, "fly-by-night commercial vocational 'schools' often sprang up to collect veterans' tuition grants" due to the newly created GI Bill's then-lax requirements and limited oversight to prevent such abuses.[48]

For-profit colleges grew significantly from 1972 to 1976, after the Higher Education Act of 1965, part of President Lyndon Johnson's "Great Society" of progressive reforms, was amended so that for-profit colleges could receive US government funds, to include Pell Grants and federal student loans.[2][49]

From 1974 to 1986, for-profit colleges share of Pell Grants rose from 7 percent to 21 percent, even though for-profit colleges only enrolled 5 percent of all higher education students.[21]

In the late 1980s, Secretary of Education William Bennett hired an outside firm, Pelavin and Associates, to investigate the problems with for-profit higher education. The investigators found widespread abuses across the industry.[21]

From 1989 to the mid-1990s, Stephen Blair, a former Department of Education official, led for-profit college industry's aggressive lobbying campaign in Washington, DC. Blair gathered funds to combat the Pelavin report and to maintain for-profit education's position. Blair also recruited politicians Bob Beckel, Patty Sullivan, and Haley Barbour to sell their cause to Democrats and Republicans.[21]

1992, the Higher Education Act was amended to include the 85–15 rule, which limited federal funding to 85 percent of a school's funding. Supporters of the 85–15 rule argued that the measure was necessary to stem fraudulent and abusive practices at for-profit colleges, and that it might restore some market incentive to education.[50] At the time, former Career College Association lobbyist Patty Sullivan estimated that 35 or 40 percent of for-profit colleges engaged in fraud.[21]

In 1993, the 85–15 rule was shelved after complaints were made to the Department of Education.[51]

In 1994, the US House of Representatives voted to allow a one-year delay in regulations scheduled to halt federal student aid for many trade schools. Tony Calandro, vice president of government affairs for the Career College Association (CCA), said that enforcement of the 85–15 rule would have forced 30 percent of the nation's 4,000 private trade schools to close.[52]

For-profit college enrollment grew again between 1998 and 2009, after the 1998 reauthorization of the Higher Education Act resulted in more deregulation. Secretary of Education Richard W. Riley also appointed former Career College's Association President Stephen J. Blair as the Liaison for Proprietary Institutions.[53]

The for-profit college industry also grew in the wake of state budget cuts, stagnation, and austerity in higher education funding that grew more visible in the 1980s and 1990s.[54]

In the wake of deregulation and the growth of for-profit colleges, initial public offerings of Devry, ITT Educational Services, Apollo Education Group, Corinthian Colleges, and Career Education Corporation occurred between 1991 and 1998. For-profit colleges had become "the darlings of Wall Street."[21]

According to the US Department of Education, the number of for-profit colleges rose from approximately 200 in 1986 to nearly 1000 in 2007.[55] From 1990 to 2009, for-profit colleges gained significant ground over public colleges, growing to 11.8 percent of all undergraduates.[56]

From the late 1980s to the mid-1990s, Senator Sam Nunn led for more scrutiny of for-profit colleges. The General Accounting Office also found that 135 for-profit colleges contributed to 54% of all student loan defaults.

In 2005, Department of Education Inspector General John B. Higgins reported that 74% of all institutional fraud investigations were for-profit colleges.[21]

The Los Angeles Times briefly described the role of Wall Street money in the growth of for-profit colleges.[57] Increased capitalization of for-profit colleges occurred after banks such as Goldman Sachs and Wells Fargo and investment firms and hedge funds such as Blum Capital Partners and Warburg Pincus became large institutional investors in this industry.[58][59][60][61]

Late 2000s and beyond

For-profit school enrollment reached its peak in 2009 and was showing major declines by 2011.[62][63][64][65] Two companies, Corinthian Colleges and Education Management Corporation faced enrollment declines and major financial trouble in 2014 and 2015;[66] Corinthian is out of business (closed) and Education Management has closed many of its campuses. University of Phoenix, a subsidiary of Apollo Group, has also seen more than a 50% drop in enrollment since its peak.[67]

According to the 2012 Harkin Report and the NY Times, students at for-profit colleges made up "13 percent of the nation's college enrollment, but account for about 47 percent of the defaults on loans. About 96 percent of students at for-profit schools take out loans, compared with about 13 percent at community colleges and 48 percent at four-year public universities."[68][69] In October 2017, Strayer and Capella agreed to merge as Strategic Education,[16] officially completing the merger in August 2018.[70]

A 2014 report by The Institute for College Access and Success showed that the likelihood of a student defaulting was three times more likely at a for-profit college than a 4-year public or non-profit college and almost four times more likely than a community college.[71]

According to data provided by colleges and universities to the National Center for Education Statistics, enrollment in for-profit institutions declined 21% between 2010 and 2013.[72] Student enrollment declined an additional 10% from 2014 to 2015.[73] More than 200 for-profit college campuses and learning sites have closed since 2012, including more than 100 University of Phoenix campuses[74] and most Everest College campuses.[75]

In 2015, Corinthian Colleges filed for bankruptcy and all of its Heald College campuses were closed.[76] In 2016, all Westwood College campuses were closed.[77] Le Cordon Bleu was also in the process of closing all of its campuses.[78] ITT Technical Institute[79] and Devry[80] also closed multiple campuses.

In 2016, The Wall Street Journal reported that more than 180 for-profit college campuses had closed between 2014 and 2016.[81] For-profit college enrollment dropped about 15% in 2016, a 165,000 decline.[82] Enrollment at University of Phoenix chain fell 22%, which was a 70% loss since 2010. DeVry University reported a 23% percent in 2016. Hondros College, a nursing school chain, dropped 14%.[83] In June 2016, Education Management announced that it was planning to close all 25 Brown Mackie College campuses. In September 2016, ITT Technical Institute closed all of its campuses. In September 2016, the US Department of Education stripped ACICS of its accreditation powers.

In 2017, all Cordon Bleu schools are expected to close.[84] At least 19 Art Institutes are also expected to close.[85] Education Management Corporation sold its remaining schools to the non-profit Dream Foundation and Purdue University proposed purchasing Kaplan University.[86] Atalem also sold its declining DeVry University and the Keller School of Management to Cogswell Education, a division of Palm Ventures.[87]

In 2018, the documentary Fail State chronicled the boom and bust of for-profit colleges, highlighting the abuses that led to their downfall.[88]

On August 10, 2018, US Education Secretary Betsy Devos scrapped a rule issued by the US Department of Education in 2010 which would have forced for-profit colleges to prove that the students they enroll are able to attain "gainful employment."[89][90][91] The gainful employment policy will expire on July 1, 2019.[90][92] In the 30-day period before its expiration, however, the Department of Education will gather public input.[93]

In September 2018, Education Corporation of America announced that they would be closing 26 campuses, which included several Virginia College campuses.[94]

Structure of for-profit education

Sources of capital and cash flow

The main sources of initial capital for public for-profit colleges are institutional investors: international banks, hedge funds, institutional retirement funds, and state retirement funds.[59][95][96]

Wells Fargo was a major funder of Corinthian Colleges[97] and Goldman Sachs provided a significant amount of capital to Education Management Corporation.[98]

The main source of cash flow consists of US Department of Education Higher Education Act Title IV funds. Title IV funds include Federal Family Education Loans (FFEL), direct loans, Federal Perkins Loans, Federal Pell Grants, Academic Competitiveness Grants (ACG), National SMART Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), and Federal Work-Study (FWS).[99] In the 1990s, Congress began requiring that for-profit schools receive at least 10% of their revenues from non-federal student aid sources, which include the GI Bill.[100]

In the 2009–2010 academic year, for-profit higher education corporations received $32 billion in Title IV funding—more than 20% of all federal aid.[49] For-profit colleges get approximately 70% of their funds from Title IV programs.[101] However, some colleges get more than 80% of their funds from Title IV.[69]

The for-profit education industry also receives billions of dollars through VA benefits also known as the GI Bill.[69] In the 2010–2011 school year, more than $1 billion went to eight for-profit schools.[102][103] In the 2012–2013 academic year, 31 percent of GI Bill funds went to for-profit colleges. Veteran participation in these schools, in effect, transferred $1.7 billion in post-9/11 GI Bill funds to these schools.[104]

These corporations also obtain cash flow through student private loans, corporate loans, and the selling of assets.[105][106] Problems with high-interest private loans to students at Corinthian Colleges (Genesis loans) and ITT Tech (PEAKS and CUSO loans) have gained scrutiny from the Consumer Financial Protection Bureau and the Securities and Exchange Commission.[107][108]

Benefits

Historically, for-profit education has offered open admissions to non-traditional students, convenience of schedule and location, instructors with workplace knowledge, and real world vocational training rather than traditional training. Critics of Wall Street-backed for-profit educators, however, have questioned these perceived benefits.[4][109][110]

For-profit schools like University of Phoenix are said to be more inclusive, recruiting and graduating more African Americans than public higher education.[111][112] The Journal of Blacks in Higher Education has called University of Phoenix "a pillar of African American higher education."[113] Through the Thurgood Marshall fund, students at 47 publicly supported historically Black colleges and universities, may supplement their on-campus course loads with course programs using the University of Phoenix online platform.[114]

For-profit colleges have also been seen as a second chance for students who have performed poorly in the past.[115]

It may be argued that for-profit colleges also created innovations that would force public higher education to be more responsive to student needs[116]

For-profit colleges have been compared favorably to community colleges in regards to graduation rates,[27] but these comparisons may be offering misleading statistical comparisons[117] [118]

Drawbacks

A 2010 report by the Government Accountability Office (GAO) documented misleading sales and marketing tactics used by several for-profits.[119][120][121] Critics have also pointed out that more than half of for-profits' revenues are either spent on marketing or extracted as profits, with less than half spent on instruction.[122][123][124]

A 2011 study by the National Bureau of Economic Research, in Cambridge, Massachusetts, reported that students who attend for-profit education institutions are more likely to be unemployed, earn less, have higher debt levels, and are more likely to default on their student loans than similar students at non-profit educational institutions.[125] Although for-profits typically serve students who are poorer or more likely to be minorities, these differences do not explain the differences in employment, income, debt levels, and student loan defaults.[125] The Government Accountability Office has also found that graduates of for-profits are less likely to pass licensing exams, and that poor student performance cannot be explained by different student demographics.[126]

A 2011 investigation by The New York Times suggested that for-profit higher education institutions typically have much higher student loan default rates than non-profits.[127] Two documentaries by Frontline have focused on alleged abuses in for profit higher education.[128][129]

Compared to community colleges, some for-profits may have higher completion rates for certificates and associate degree programs,[117] but higher drop out rates for four-year bachelor's degrees.[125] However, studies suggest that one- and two-year programs often may not provide much economic benefit to students because the boost to wages is offset by increased debt. By contrast, four-year programs provide a large economic benefit.[130]

For-profits have been sued for allegedly using aggressive and deceptive sales and marketing practices.[131] Holly Petraeus, a high-ranking official at the Consumer Financial Protection Bureau, has accused for-profits of preying on vulnerable military personnel.[132] Petraeus wrote:

"This gives for-profit colleges an incentive to see service members as nothing more than dollar signs in uniform, and to use aggressive marketing to draw them in and take out private loans...One of the most egregious reports of questionable marketing involved a college recruiter who visited a Marine barracks at Camp Lejeune, North Carolina. As the PBS program Frontline reported, the recruiter signed up Marines with serious brain injuries. The fact that some of them couldn’t remember what courses they were taking was immaterial, as long as they signed on the dotted line."

Opponents say that the fundamental purpose of an educational institution should be to educate, not to turn a profit. In 2000, Bob Chase, president of the National Education Association, stated that "educating children is very different from producing a product".[133]

Certain postsecondary education programs at institutions of higher education are eligible for participation in the federal student aid programs, known as Title IV of the US Higher Education Act (HEA). These programs, which are offered by public and private not-for-profit institutions, postsecondary vocational institutions, and by for-profit proprietary institutions, should prepare students for gainful employment. For decades, the U.S. Department of Education (ED) had not established regulations that explicitly outlined what it means for a program to be properly preparing students for gainful employment. As pressing concerns about the quality of programs at for- profit institutions began to arise, the concerns about the level of student loan debt assumed by students did as well. Such issues led to new initiatives and rules to be set in place outlining the parameters for what should be mandated to help ensure gainful employment.

The 2011 Senate HELP committee released data showing one in every four students who enroll at a for-profit school default on their loans within three years of leaving, with for-profit students accounting for almost half of all loan defaults.[134] Most for-profit colleges charge enrollees much higher tuition rates than analogous programs at community colleges and state public universities despite credits being likely not eligible to be transferred to other institutions.[134] In fact, 96% of students attending for-profit college apply for federal student loans compared to 13% at community colleges. During the 2009–2010 school years, for-profit colleges received almost $32 billion in grants and loans provided to students under federal student aid programs.[135] This staggering number means nearly all students at for-profit institutions acquire student loan debt, even when they do not earn the end product of a degree or accumulate increased earning power through their studies (Sessions, 2011). These statistics represent a large portion of for- profits, uncovering the serious need for greater accountability in ensuring students are making sound investments in such institutions.

According to the Government Accountability Office, enrollment in such institutions has increased faster than traditional higher-education institutions in recent years. With the student and federal interest in such programs growing, so has the concern with their productivity. Regrettably, this is not a simple matter to address, as the issue is multidimensional. For-profit institutions have become an increasingly visible portion of the U.S. higher education sector. For-profits also acquire the largest percentage of their overall revenue from federal student aid programs, highlighting tax dollars are potentially not being used efficiently.[136]

Federal regulatory actions by the ED have attempted to address these issues in the Title IV of the Higher Education Act of 1965, as amended. These efforts were very contentious. For-profit institutions argue their sector is unfairly targeted and believe the Department of Education over stepped its boundaries in 2010 by implementing regulations specifying requirements for Gainful Employment. These rules outlined in a report by Congressional Research Service (CRS), aimed to hold for-profits accountable by creating standards which must be upheld and followed, which will in turn attempt create more opportunity for gainful employment amongst enrollees.[137] Through these regulations the ED believed that institutions will reinforce their educational programs to meet these higher standards, and relatively few programs will fail. Programs that offer a rewarding education at a reasonable price will succeed, and institutions will continue to innovate to assist students and taxpayers.[138]

The regulations mandated by the ED were to help regulate the for-profit sector and to combat the issue of gainful employment. However, the Association of Private Sector Colleges and Universities, which endorses for –profits, challenged these regulations in court. On June 30, 2012 the U.S. District Court for the District of Columbia decided to vacate most aspects of the regulations.[137] The court sustained that the ED had the authority to regulate gainful employment, yet it cited the ED had not provided rationale metrics or measures in the debt measures. At present, only the disclosure requirements of providing prospective students with placements rates, on time graduation rates and other similar information remain.[139] On March 19, 2013 the judge ruled again in response to the ED's motion to reinstate the reporting requirements in order that it could implement the disclosure requirements of Gainful Employment. The judged denied the motion of the ED on the basis that the reporting requirements would violate the federal ban on the student unit record system. It is strongly debatable that the court's ruling negates the small amount of transparency and accountability mandated by the disclosure requirements, leaving the policy issue of for-profits being accountable for Gainful Employment unattended.[140]

Some former students claim that for-profit colleges make them feel like they went to the flea market and bought themselves a degree.[141]

According to James G. Andrews of the American Association of University Professors, corporate models of education harm the mission of education.[142]

Some critics have called for-profit education "subprime education", in an analogy with the subprime mortgages bubble at the heart of the Great Recession – finding uninformed borrowers and loading them with debt they cannot afford, then securitizing and passing the loan onto third-party investors. Activist short seller Steve Eisman (famous for being a character in Michael Lewis's The Big Short) has described the accreditation situation regarding for-profits like ITT as follows: "The scandal here is exactly akin to the rating agency role in subprime securitizations."[143]

A two-year congressional investigation report—from a committee chaired by Senator Tom Harkin, D-Iowa—examined enrollment numbers in selected for-profit higher education institutions. The committee found that $32 billion in federal funds were spent in 2009–2010 on for-profit colleges. The majority of students enrolled in the institutions left without a degree and carried post-schooling debt. Regarding the dropout rates, the report said 54% of students in bachelor's degree programs dropped out before degree completion and 63% of students in associate degree programs dropped out.[144]

Accreditation and transfer-of-credits

Many for-profit institutions of higher education have national accreditation rather than regional accreditation. Regionally accredited schools are predominantly academically oriented, non-profit institutions.[145][146] Nationally accredited schools are predominantly for-profit and offer vocational, career, or technical programs.[145][146] Most regionally accredited schools will not accept transfer credits earned at a nationally accredited school because, except for some specialized areas such as nursing, the standards for regional accreditation are higher than those for national accreditation.[145][146][147][148]

In the 2005 congressional discussions concerning reauthorization of the Higher Education Act and in the U.S. Secretary of Education's Commission on the Future of Higher Education, there were proposals, ultimately unsuccessful, to mandate that regional accrediting agencies bar the schools they accredit from basing decisions on whether or not to accept credits for transfer solely on the accreditation of the "sending" school.[147][148] They could still reject the credits, but they would have to have additional reasons. The American Commission of Career Schools and Colleges (ACCSC), a nonprofit accreditor for-profit schools, supported the proposed rule.[147][148][149] The ACCSC claims regionally accredited schools will not accept nationally accredited schools credits for purely arbitrary, prejudicial and/or anti-competitive reasons.[149] It further stated that, since the Department of Education recognizes both national and regional accreditation, there is no reason for regionals to differentiate between the two and to do so amounts to an unwarranted denial of access.[147][148][149] The position of the American Association of Collegiate Registrars and Admissions Officers (AACRAO) was that national accrediting standards were not as rigorous and, though they might be well-suited for vocational and career education, were ill-suited for academic institutions.[150] AACRAO alleged that this proposed rule was unnecessary and unjustified, could threaten the autonomy and potentially lower the standards of regionally accredited schools, and drive up their costs.[150] Furthermore, it stated the proposed rule was an attempt by the for-profits' "well-funded lobbyists" to obscure the difference between for-profits' "lax academic criteria for accreditation" and non-profits' higher standards.[150]

Some for-profit schools have received regional accreditation, including American InterContinental University, American Public University System, Capella University, DeVry University, Kaplan University, National American University, Post University, San Joaquin Valley College, Strayer University, University of Phoenix, Universal Technical Institute, and Walden University.

Accrediting agencies have gained some scrutiny and criticism for conflicts of interest. Because these agencies receive their funding from the institutions themselves, they may have a vested interest in not aggressively supervising these for-profit colleges.[151]

According to Chris Kirkham and Kevin Short: "Two accrediting bodies...collectively monitor nearly 60 percent of all American for-profit colleges. They preside over almost half of those schools with the nation's worst student loan default rates....Ten of the 15 board members supervising the ACICS are drawn from the industry, including executives from Corinthian, Education Corporation of America and ITT Technical Institute. On the ACCSC board, industry executives fill eight of the 13 slots, representing publicly traded companies such as Universal Technical Institute and Kaplan Higher Education."[151]

In 2016, 12 Attorneys General asked the US Department of Education to stop the renewal of ACICS, the Accrediting Council for Independent Colleges and Schools[152]

In June 2016, the Department of Education deliberated on the fate of ACICS and its power to accredit schools for Title IV government funds.[153] On June 23, 2016, The National Advisory Committee on Institutional Quality and Integrity (NACIQI), voted to revoke ACICS's power to accredit schools.[154]

Business failures

Notable failures include Corinthian Colleges, ITT Technical Institute, and Education Management Corporation.[155][156] In 2010, Trump University was closed by the State of New York for operating without a license.[157] In 2014, FastTrain college closed after being raided by the FBI.[158] In 2016, all campuses of Westwood College closed.[77]

In 2016, the US Department of Education stripped ACICS, the accreditor of ITT Tech and many more colleges, of its accrediting power. The ACICS was given the power back under Secretary of Education Betsy DeVos.[159]

Government scrutiny, criminal and civil investigations

According to A.J. Angulo, for-profit higher education in the US has been the subject of government scrutiny from the mid-1980s to the 2010s.[21]

For-profits topped the Department of Education's list for the 2005–2007 cohort default rates, with campuses at ATI and Kaplan reporting default rates far above 20%. Most of the for-profits' expansion has been in the states of California, Arizona, Texas and Florida, with the metro areas of Los Angeles, Phoenix, Dallas and Miami-West Palm Beach being centers of their growth.[160][161][162][163][164] For comparison, in Miami, Everest Institute reports a default rate for two of its campuses to be 18% and 20%; Miami Dade College, the district's community college, which serves as a primary channel for local beginning students, reports a default rate of roughly 10%; Florida International University, a public university serving the Miami metropolitan area, reports approximately 5%.[165]

In August 2010, the Government Accountability Office reported on an investigation that randomly sampled student-recruiting practices of several for-profit institutions. Investigators who posed as prospective students documented deceptive recruiting practices, including misleading information about costs and potential future earnings. They also reported that some recruiters had urged them to provide false information on applications for financial aid.[166] Out of the fifteen sampled, all were found to have engaged in deceptive practices, improperly promising unrealistically high pay for graduating students, and four engaged in outright fraud, per a GAO report released at a hearing of the Health, Education, Labor and Pensions Committee held on August 4, 2010.[167] Examples of misconduct include:

  • offering commissions to admissions officers,
  • employing deceptive marketing tactics by refusing to disclose total tuition cost to prospective students before signing a binding agreement,
  • lying about accreditation,
  • encouraging outright fraud by enticing students to take out student loans even when the applicant had $250,000 in savings,
  • promising extravagant, unlikely high pay to students,
  • failing to disclose graduation rate, and
  • offering tuition cost equivalent to 9 months of credit hours per year, when total program length was 12 months.

The four for-profit colleges found to be engaging in fraudulent practices were:

  1. Westech, California: Encouraging undercover applicant with falsified $250,000 in savings to falsely increase the number of dependents in the household in order to qualify for a Pell Grant, as well as take out the maximum amount in student loans;
  2. Medvance Institute in Miami, Florida: Financial aid representative told an applicant not to report $250,000 in savings, comparing student loans to a car payment in that, "no one will come after you if you don't pay". In fact, a student loan default may remain in the debtor's credit history, prevent them from taking out a car loan, mortgage or rent, and may have their pay garnished up to 15%, until the student loan is paid in full. Another admissions officer at Kaplan College in Pembroke Pines, Florida,[168] alluded to fraudulent behaviour stating to the applicant when inquiring about the repayment of loans, "You gotta look at it ... I owe $85,000 to the University of Florida. Will I pay it back? Probably not ... I look at life as tomorrows never promised ... Education is an investment, you’re going to get paid back ten-fold, no matter what.";
  3. Anthem Institute in Springfield, Pennsylvania: Financial aid representative editing applicant's FAFSA form by omitting $250,000 in savings;
  4. Westwood College in Dallas, Texas: Admissions representative telling applicant to falsely add dependents to qualify for Pell Grants, assuring the applicant that the dependents would not be verified through previous income tax returns nor Social Security numbers, and financial aid representative encouraging applicant not to report the $250,000 in savings, stating that "it was not the government's business how much money the undercover applicant had in a bank account.", when the Department of Education requires students to report such assets, along with income, to determine how much and what type of financial aid will be awarded.

It was found that 14 out of 15 times, the tuition at a for-profit sample was more expensive than its public counterpart, and 11 out of 15 times, it was more expensive than the private counterpart. Examples of the disparity in full tuition per program include: $14,000 for a certificate at the for-profit institution, when the same diploma cost $500 at a public college; $38,000 for an Associate's at the for-profit institution, when the comparable program at the public college cost $5,000; $61,000 for a Bachelor's at the for-profit institution, compared to $36,000 for the same degree at the public college.[169] This is counter to International Education Corporation CEO Fardad Fateri's claims of the lack of use of unorthodox recruiting practices and a for-profit's "value" in an IEC open letter to Congress,[170] the tuition cost of certificates and associate degrees being 28 and 6 times more than at a public college, respectively; Fateri writes, "Credit should be given to non-profit universities that have been able to convince students and their sophisticated parents to pay approximately $400,000.00 for an undergraduate degree that will seldom lead to an academically related career." However, the most expensive college in the United States, Sarah Lawrence College in Bronxville, New York, had a tuition cost of $41,040 for 2009 fiscal year,[171][172] bringing the tuition of a four-year bachelor's degree to just above $160,000.

The institutions identified in the Committee hearing in respect to the GAO report numeration were:

Tuition cost comparison between for-profit, public and private colleges for equivalent programs.
  1. University of Phoenix – Phoenix, Arizona[160]
  2. Everest Institute – Mesa, Arizona[173]
  3. Westech College – Victorville, Ontario, Moreno Valley, California[174]
  4. Kaplan – Riverside, California[175]
  5. Potomac College – Washington, D.C.
  6. Bennett Career Institute – Washington, D.C.
  7. Kaplan – Pembroke Pines, Florida[176]
  8. College of Office Technology – Chicago, Illinois[177]
  9. Argosy University – Chicago, Illinois[178]
  10. University of Phoenix – Philadelphia, Pennsylvania[173]
  11. Anthem Institute – Springfield, Pennsylvania[179]
  12. Westwood College – Dallas, Texas[179]
  13. Everest Institute – Dallas, Texas[180]
  14. ATI Career Training – Dallas, Texas[181]

In 2010, students at for-profit institutions represented about 12% of all college students, but receive roughly 25% of all Federal Pell Grants and loans. They were also responsible for approximately 44% of all student loan defaults.[182][183] University of Phoenix topped this list with Pell Grant revenue of $656.9 million with second and third place held by Everest Colleges at $256.6 million and Kaplan College at $202.1 million for the 2008–2009 fiscal year, respectively.[184] In 2003, a Government Accountability Office report estimated that overpayments of Pell Grants were running at about 3% annually, amounting to around $300 million per year.[185] Some of the universities that were top recipients of Pell Grants had low graduation rates, leaving students degreeless, and many graduating alumni found it excessively difficult to find gainful employment.[186][187] with their degrees, leading some former students to accuse recruiters of being "duplicitous", and bringing into serious question the effectiveness of awarding Pell Grants and other Title IV funds to for-profit colleges.[188][189] University of Phoenix's graduation rate is 15%.[190][191] Strayer University, which reports its loan repayment rate to be 55%, only has a repayment rate of roughly 25%,[192] according to data released by the U.S. Department of Education on August 13, 2010.[193] The low repayment rate made Strayer ineligible for receiving further Title IV funds in accordance with new "Gainful employment" regulations brought forth by the Department of Education, which were to take effect in July 2011.[194] If passed, the minimum loan repayment requirement for any institution receiving Title IV funds, subject to suspension and expulsion if not compliant, will be 45%.[195]

In an August 4, 2010 Health, Education, Labor and Pensions Committee hearing, Gregory Kutz of the GAO stated that the fraudulent practices may be widespread in the For-Profit industry, noting a University of Phoenix executive chart that encouraged deceptive practices.[196] Joshua Pruyn, a former admissions representative, disclosed to the committee hearing several internal emails distributed among admissions officers in March 2008 which encouraged applications and enrollments through the use of a commissions reward system. During a congressional hearing to present the report, Pruyn's testimony was disproven by tapes of conversations, and it was reported that Pruyn's comments were written by attorneys who were suing Westwood,[197] and inappropriately coached by Chairman of the committee Senator Thomas Harkin staffers who organized the hearing.[198] Sen. Harkin noted the conflict of interest due to the ACCSC, a national accrediting agency that accredits many for-profit colleges nationwide,[199] receiving compensation directly from the institutions to which it awards accreditation. The Inspector General issued an assessment in late 2009 recommending the limiting and possible suspension or expulsion of the Higher Learning Commission of the North Central Association of Colleges and Schools due to conflicts in the manner in which the accrediting agency reviews credit hours and program length for online-colleges, specifically American InterContinental University, a for-profit college.[200] The NCA HLC accredits the University of Phoenix and Everest in Phoenix, Arizona.

On November 30, 2010, the GAO issued a revised report, softening several examples from an undercover investigation and changing some key passages, but stood by its central finding that colleges had encouraged fraud and misled potential applicants.[201]

In 2014, a criminal investigation of Corinthian Colleges was initiated.[202]

Until 2015, The US Attorney General and at least eleven states maintained an $11 billion lawsuit against Education Management Corporation [203] The US Consumer Financial Protection Bureau also has a suit against ITT Educational Services, parent company of ITT Tech.[204] [205] In 2016, Alejandro Amor, the founder of FastTrain, was sentenced to eight years in federal prison for fraud.[206]

Attempts to regulate and deregulate the industry

The US Department of Education (DoED) has proposed rules, "gainful employment regulations", that would provide more transparency and accountability to institutions that offer professional and technical training. According to DoED, this regulation is an attempt to "protect borrowers and taxpayers."[207]

In his 2015 budget proposal, President Obama recommended greater regulation of for-profit education, including a closure of the loophole that exempted GI Bill money from being used in the 90-10 formula.[208]

In 2017, the US Department of Education held public hearings were held in order to determine whether the government had overstepped regulation efforts, particularly with gainful employment and defense to repayment rules.[209]

In August 2017, Secretary of Education Betsy DeVos instituted policies to loosen regulations on for-profit colleges.[8]

In September 2017, the Trump Administration proposed to remove conflict of interest rules between VA officials and for-profit colleges.[210]

For-profit college lobbyists promoting deregulation

Lobbyists for the for-profit higher education industry have taken several steps to stop regulation and to fight against transparency and accountability.[211] They have also supported at least two lawsuits to squash gainful employment regulations.[212][213] [214]

For-profit colleges transitioning to nonprofit colleges

At least three colleges or universities have transitioned to nonprofit status: Keiser University, Remington College, and Herzing University.[215] Journalists argue that these transitions are strategies to reduce state and federal regulations and to obtain more Title IV funds.[216][217]

In 2014 Grand Canyon University considered a transition to nonprofit status.[218] In March 2016, Grand Canyon's regional accreditation body, The Higher Learning Commission, formally rejected the university's petition for conversion to non-profit status. The commission's board of directors stated that the school did not meet all five criteria for "such a conversion".[219][220][221]

In 2018, Grand Canyon University and Ashford University petitioned for non-profit status.[222]

See also

References

  1. ↑ Mary Beth Marklein, Jodi Upton and Sandhya Kambhampati, USA TODAY (2 July 2013). "College default rates higher than grad rates". USA TODAY. Retrieved 14 June 2015.
  2. 1 2 "A Phoenix Still in Ashes : For-Profit Open Admissions and the Public Good" (PDF). Digilib.gmu.edu. Retrieved 4 July 2015.
  3. ↑ "Doonesbury Talks For-Profit Colleges - ACFP 2012". Sites.duke.edu. Retrieved 14 June 2015.
  4. 1 2 "Insider's View of For-Profit Colleges, Race, Class and Education Justice". The Huffington Post. 13 January 2012. Retrieved 14 June 2015.
  5. ↑ "Under Fire : Nursing Degrees from For-Profit Institutions" (PDF). Hs.boisestate.edu. Retrieved 4 July 2015.
  6. ↑ Armour, Stephanie; Zibel, Alan (January 13, 2014). "For-Profit College Probe Expands". The Wall Street Journal. Retrieved 15 January 2015.
  7. 1 2 "How Higher Ed Contributes to Inequality". The Atlantic. Retrieved 14 June 2015.
  8. 1 2 "Education Secretary Betsy DeVos Will Allow For-Profit Schools To Continue Offering Programs That Don't Meet Standards". Consumerist.com. August 17, 2017. Retrieved January 1, 2018.
  9. ↑ "A popular college investment promised students a career, but didn’t pay off - The Washington Post". washingtonpost.com. Retrieved 18 February 2017.
  10. ↑ http://www.benefits.va.gov/GIBILL/docs/Overview_GI%20Bill_Feedback%20System_CY14.pdf
  11. ↑ Danilova, Maria. "More than half of students at for-profit colleges defaulted on loans, study finds". ChicagoTribune.com. Retrieved January 1, 2018.
  12. ↑ "Black Americans Twice as Likely as Whites to Default on Student Debt". October 11, 2017. Retrieved January 1, 2018 – via www.Bloomberg.com.
  13. ↑ "The Debt Collective". debt-is.herokuapp.com. Retrieved 18 February 2017.
  14. ↑ "Forgiveness, Cancellation, and Discharge | Federal Student Aid". studentaid.ed.gov. Retrieved 18 February 2017.
  15. ↑ http://nces.ed.gov/pubs2016/2016112.pdf
  16. 1 2 "Strayer and Capella, two publicly traded for-profit providers, to merge". InsideHigherEd.com. Retrieved January 1, 2018.
  17. ↑ Mina Kimes (4 February 2014). "Clinton Pitches KKR-Backed College Chain Amid Controversy". Bloomberg.com. Retrieved 14 June 2015.
  18. ↑ "Our History - Apollo Education Group". Apollo.edu. Retrieved 14 June 2015.
  19. ↑ "Archives/edgar/data/912766/000104746916013340/a2227130zs-1a". sec.gov. Retrieved 18 February 2017.
  20. ↑ "Friends In High Places: Who Endorses America's Troubled For-Profit Colleges? – Republic Report". republicreport.org. Retrieved 18 February 2017.
  21. 1 2 3 4 5 6 7 8 Angulo, A.J. (2016). Diploma Mills: How For-Profit Colleges Stiffed Students, Taxpayers, and the American Dream. Johns Hopkins University Press. ISBN 9781421420073. Retrieved 18 February 2017.
  22. ↑ "For-Profit Colleges Spending Millions On Lobbying, Nearly $40 Million Since 2007". The Huffington Post. 30 August 2012. Retrieved 14 June 2015.
  23. ↑ "For-profit Education: Lobbying, 2014". OpenSecrets.org. Retrieved 2 July 2015.
  24. ↑ "For-profit Education: Long-Term Contribution Trends | OpenSecrets". opensecrets.org. Retrieved 18 February 2017.
  25. ↑ "Seeking a fresh start, battered for-profit colleges give themselves a new name - The Hechinger Report". hechingerreport.org. Retrieved 18 February 2017.
  26. ↑ Neal McCluskey (13 January 2015). "Even for-profit universities are better than America's terrible community colleges". Washington Post. Retrieved 14 June 2015.
  27. 1 2 McCluskey, Neal (19 January 2015). "How for-profits beat community colleges". Stars and Stripes. Archived from the original on 20 January 2015. Retrieved 19 January 2015.
  28. ↑ "Laureate Paid Bill Clinton $16.5 Million". insidehighered.com. Retrieved 18 February 2017.
  29. ↑ "Which For-Profit College Lobbyist Are You?". The Huffington Post. 28 March 2014. Retrieved 14 June 2015.
  30. ↑ "Regulations Lead To Lobbying Surge By The For-Profit College Industry". Sunlight Foundation. Retrieved 14 June 2015.
  31. 1 2 "Why would Leon Panetta, Marc Morial join for-profit Corinthian? - latimes". articles.latimes.com. Retrieved 18 February 2017.
  32. ↑ "Jane Oates Sells Out". The Washington Monthly. Retrieved 14 June 2015.
  33. ↑ "Education Nation & Ideological Blindness | Gary Stager". Huffingtonpost.com. 2010-10-19. Retrieved 2 July 2015.
  34. ↑ "Head of Group Charged With Protecting Student Vets Joins For-Profit College Lobby". The Huffington Post. 5 November 2013. Retrieved 14 June 2015.
  35. ↑ "Bill Clinton’s pay at for-profit education company topped $17.5 million - POLITICO". politico.com. Retrieved 18 February 2017.
  36. ↑ Cohen, Patricia (March 17, 2017). "Betsy DeVos's Hiring of For-Profit College Official Raises Impartiality Issues". Retrieved January 1, 2018 – via NYTimes.com.
  37. ↑ "Betsy DeVos loses lawsuit after delaying student loan protection rule".
  38. ↑ "Court rules against Education Secretary Betsy DeVos in for-profit college case".
  39. 1 2 "U. of Phoenix Reboots Advertising and Rebrands in the Process – Bottom Line - Blogs - The Chronicle of Higher Education". Chronicle.com. Retrieved 14 June 2015.
  40. ↑ "Recruitment by for-profit colleges targeted". Yahoo News. 18 April 2012. Retrieved 14 June 2015.
  41. ↑ https://web.archive.org/web/20141117210304/http://www.academia.edu/8504554/4ProfitsRUs. Archived from the original on 17 November 2014. Retrieved 15 January 2015. Missing or empty |title= (help)
  42. ↑ "Calif. Accuses Corinthian Colleges of False Placement Rates, Predatory Ads". The Chronicle of Higher Education. Retrieved 14 June 2015.
  43. ↑ "Lead Generators: A Checklist for Reporters". Nacacnet.org. Retrieved 14 June 2015.
  44. ↑ "What's a goat farmer doing ranking business schools? - Fortune". Fortune. Retrieved 14 June 2015.
  45. ↑ "For-Profit Colleges: Predators in the Ivory Tower". SF Weekly. Retrieved 14 June 2015.
  46. ↑ "Higher Ed, Inc". Books.google.com. Retrieved 14 June 2015.
  47. ↑ "Diploma Mills". jhupbooks.press.jhu.edu. Retrieved 18 February 2017.
  48. ↑ "Delivering for Young Families: The Resonance of the GI Bill". prospect.org. Retrieved 18 February 2017.
  49. 1 2 "SUBPRIME EDUCATION: FOR-PROFIT COLLEGES AND THE PROBLEM WITH TITLE IV FEDERAL STUDENT AID" (PDF). Scholarship.law.duke.edu. Retrieved 4 July 2015.
  50. ↑ "Institutional Eligibility and the Higher Education Act: Legislative History of the 90/10 Rule and Its Current Status". congressionalresearch.com. Retrieved 18 February 2017.
  51. ↑ "Planned Higher-Ed. Rules Shelved After Complaints - Education Week". edweek.org. Retrieved 18 February 2017.
  52. ↑ "Trade Schools Win Reprieve on Aid Cutoff - NYTimes.com". nytimes.com. Retrieved 18 February 2017.
  53. ↑ "eannouncements/doc0984_bodyoftext". ifap.ed.gov. Retrieved 18 February 2017.
  54. ↑ "Suzanne Mettler sees higher ed 'caste system'". Cornell Chronicle. Retrieved 14 June 2015.
  55. ↑ "For-Profit Colleges and Universities". Books.google.com. Retrieved 14 June 2015.
  56. ↑ "3 Million and Counting". Inside Higher Ed. Retrieved 14 June 2015.
  57. ↑ "Operating Career College Lucrative Vocation for CEO - latimes". articles.latimes.com. Retrieved 18 February 2017.
  58. ↑ "With Goldman's Foray Into Higher Education, A Predatory Pursuit Of Students And Revenues". The Huffington Post. 14 October 2011. Retrieved 14 June 2015.
  59. 1 2 "Who Owns The Awful Corinthian Colleges? Wells Fargo, Marc Morial, Pension Funds". The Huffington Post. 15 October 2013. Retrieved 14 June 2015.
  60. ↑ "The Daily Censored » More on for-profit college sludge and Richard Blum: Who funds the Brookings Institute?". Dailycensored.com. Retrieved 14 June 2015.
  61. ↑ "Bridgepoint: Huge Profits, but Possibly No Future". Sandiegoreader.com. Retrieved 14 June 2015.
  62. ↑ "The Condition of Education - Participation in Education - Postsecondary - Undergraduate Enrollment - Indicator May (2016)". nces.ed.gov. Retrieved 18 February 2017.
  63. ↑ Fain, Paul (November 11, 2011). "More Selective For-Profits". Inside Higher Ed. Retrieved 15 January 2015.
  64. ↑ "New data show slowing national enrollment decline". Inside Higher Ed. Retrieved 14 June 2015.
  65. ↑ "How might these 6 for-profit institutions fare in 2015?". Education Dive. 31 December 2014. Retrieved 14 June 2015.
  66. ↑ "An Update On For-Profit Colleges". NPR. 24 December 2014. Retrieved 14 June 2015.
  67. ↑ "Enrollment Declines At University Of Phoenix — Again". BuzzFeed. Retrieved 14 June 2015.
  68. ↑ "Harkin Report Condemns For-Profit Colleges - The New York Times". nytimes.com. Retrieved 18 February 2017.
  69. 1 2 3 "For Profit Higher Education: The Failure to Safeguard the Federal Investment and Ensure Student Success" (PDF). Help.senate.gov. Retrieved 4 July 2015.
  70. ↑ "Capella and Strayer complete merger, shares soar nearly 12 percent on strong Q2 results".
  71. ↑ "Despite Lower Rates, More Than 650,000 Defaulted on Federal Student Loans | The Institute For College Access and Success". Ticas.org. 2014-09-24. Retrieved 4 July 2015.
  72. ↑ "www.bizjournals.com/albuquerque/news/2016/04/15/for-profit-academic-institutions-like-university.html?ana=yahoo". bizjournals.com. Retrieved 18 February 2017.
  73. ↑ "The ITT Fraud: For-Profit Education and the Crisis of the Commons". counterpunch.org. Retrieved 18 February 2017.
  74. ↑ "University of Phoenix to Close 115 Locations - The New York Times". nytimes.com. Retrieved 18 February 2017.
  75. ↑ "Everest College campuses closing in 11 states". wbaltv.com. 2014-07-10. Retrieved 18 February 2017.
  76. ↑ "Corinthian closing its last schools; 10,000 California students displaced - LA Times". latimes.com. Retrieved 18 February 2017.
  77. 1 2 "For-Profit Westwood College Announces Closing". insidehighered.com. Retrieved 18 February 2017.
  78. ↑ "Career Ed Closing Down Le Cordon Bleu Operations". insidehighered.com. Retrieved 18 February 2017.
  79. ↑ "ITT Tech Suspends Enrollment at Several Campuses". insidehighered.com. Retrieved 18 February 2017.
  80. ↑ "DeVry to close some out-of-state campuses - Chicago Tribune". chicagotribune.com. Retrieved 18 February 2017.
  81. ↑ Finley, Alyssa (June 22, 2016). "Obama Empties Innovative Classrooms". The Wall Street Journal. Archived from the original on June 25, 2016. Retrieved February 18, 2017.
  82. ↑ "College and university enrollment is down for fifth straight year - The Hechinger Report". hechingerreport.org. Retrieved 18 February 2017.
  83. ↑ "Amid scrutiny, for-profit colleges see enrollment slide - Chicago Tribune". chicagotribune.com. Retrieved 18 February 2017.
  84. ↑ "ceco-10q_20160930.htm". sec.gov. Retrieved 18 February 2017.
  85. ↑ "Many Art Institute employees laid off in Pittsburgh". wtae.com. 2016-05-05. Retrieved 18 February 2017.
  86. ↑ "Here's Why Purdue University Is Buying A Massive For-Profit College For $1". Buzzfeed.com. Retrieved January 1, 2018.
  87. ↑ Hensley-Clancy, Molly. "Troubled DeVry University Gets Sold Off For A Pittance". BuzzFeed. Retrieved January 1, 2018.
  88. ↑ "'Fail State' Delves into the Shadowy World of For-Profit Colleges". texasobserver.org. October 27, 2017.
  89. ↑ https://www.washingtonpost.com/news/grade-point/wp/2018/08/10/trumps-education-department-moves-to-rescind-rule-aimed-at-for-profit-schools/
  90. 1 2 https://www.nytimes.com/2018/08/10/us/politics/betsy-devos-for-profit-colleges.html
  91. ↑ https://www.cnn.com/2018/08/10/politics/devos-obama-for-profit-college-rule/index.html
  92. ↑ https://www.10news.com/newsy/betsy-devos-wants-to-end-rules-meant-to-curb-abuse-by-some-colleges
  93. ↑ https://www.pbs.org/newshour/nation/devos-proposes-rollback-of-for-profit-college-rule
  94. ↑ https://www.insidehighered.com/news/2018/09/12/profit-chain-will-close-dozens-campuses
  95. ↑ Kosman, Josh (12 July 2014). "Goldman Sachs, KKR flunk in college investment". New York Post. Retrieved 14 June 2015.
  96. ↑ "Corporations Are Not People". Books.google.com. Retrieved 14 June 2015.
  97. ↑ "Who Owns The Awful Corinthian Colleges? Wells Fargo, Marc Morial, Pension Funds | The Huffington Post". huffingtonpost.com. Retrieved 18 February 2017.
  98. ↑ "Education Management Corporation - History". edmc.edu. Retrieved 18 February 2017.
  99. ↑ "What are Title IV Programs?". Federalstudentaid.ed.gov. Retrieved 14 June 2015.
  100. ↑ Bair, Sheila (January 1, 2015). "For-Profit Schools Are a Bad Deal for Both Investors and Taxpayers". Fortune. 171 (1): 39.
  101. ↑ "Search" (PDF). Projectonstudentdebt.org. Retrieved 14 June 2015.
  102. ↑ "8 For-Profit Colleges Collect More Than $1-Billion in Veterans' Education Benefits". The Chronicle of Higher Education. Retrieved 14 June 2015.
  103. ↑ "For-Profit Colleges Still Cash In on Post-9/11 GI Bill, Harkin Report Says". The Chronicle of Higher Education. Retrieved 14 June 2015.
  104. ↑ Zillman, Claire (February 3, 2015). "Obama's budget aims to eliminate for-profit colleges' GI Bill loophole". Fortune. Retrieved 7 February 2015.
  105. ↑ "For Profit Higher Education: The Failure to Safeguard the Federal Investment and Ensure Student Success" (PDF). Gpo.gov. Retrieved 4 July 2015.
  106. ↑ "New report shows nearly $2 billion in GI Bill funds go to for-profit colleges". PBS NewsHour. Retrieved 14 June 2015.
  107. ↑ "CFPB Sues For-Profit Corinthian Colleges for Predatory Lending Scheme". Consumer Financial Protection Bureau. Retrieved 14 June 2015.
  108. ↑ "ITT Educational sinks after disclosing SEC probe". Yahoo Finance. 25 February 2013. Retrieved 14 June 2015.
  109. ↑ "The Low-Down on For-Profit Colleges". Nacacnet.org. Retrieved 14 June 2015.
  110. ↑ "Screw U: How For-Profit Colleges Rip You Off". Mother Jones. Retrieved 14 June 2015.
  111. ↑ American Public Media. "Who Goes to the University of Phoenix?". Americanradioworks.publicradio.org. Retrieved 14 June 2015.
  112. ↑ "More Minority Students Earn Degrees From University of Phoenix". Urbanmecca.com - African American News. Retrieved 14 June 2015.
  113. ↑ "The University of Phoenix Is a Pillar of African American Higher Education". The Journal of Blacks in Higher Education. Retrieved 14 June 2015.
  114. ↑ "University of Phoenix Signs Agreement to Offer Online Courses to HBCU Students". The Journal of Blacks in Higher Education. Retrieved 14 June 2015.
  115. ↑ "ERIC - Choice of For-Profit College, Economics of Education Review, 2012-Dec". Eric.ed.gov. Retrieved 14 June 2015.
  116. ↑ "Profit-Making or Profiteering? Proprietaries Target Teacher Education". Ecs.org. Retrieved 2 July 2015.
  117. 1 2 https://web.archive.org/web/20150116122736/http://mediamatters.org/research/2015/01/12/wsj-uses-bad-numbers-to-wipe-away-downside-of-f/202104. Archived from the original on 16 January 2015. Retrieved 16 January 2015. Missing or empty |title= (help)
  118. ↑ "Wall Street's For-Profit University Rip-Off". Icl-fi.org. Retrieved 14 June 2015.
  119. ↑ Lewin, Tamar (2010-08-03). "For-Profit Colleges Mislead Students, Report Finds". The New York Times.
  120. ↑ Lewin, Tamar (2010-12-08). "U.S. Revises Report on Recruiting at For-Profit Colleges". New York Times.
  121. ↑ "FOR-PROFIT COLLEGES Undercover Testing Finds Colleges Encouraged Fraud and Engaged in Deceptive and Questionable Marketing Practices" (PDF). Eric.ed.gov. Retrieved 4 July 2015.
  122. ↑ "For-Profit College Investigation". U.S. Senate. Retrieved 19 March 2013.
  123. ↑ "Where Are Federal G.I. Bill Dollars Going?" (PDF). U.S. Senate. Retrieved 19 March 2013.
  124. ↑ "Senator Harkin's Findings Regarding Veterans and For‐Profit Colleges" (PDF). U.S. Senate. Retrieved 19 March 2013.
  125. 1 2 3 David J. Deming, Claudia Goldin, and Lawrence F. Katz, "The For-Profit Postsecondary School Sector: Nimble Critters or Agile Predators?" National Bureau of Economic Research 2011.
  126. ↑ Kelly Field (December 7, 2011). "Demographics Do Not Explain For-Profit Colleges' Shortcomings on Student-Success Measures, GAO Says". Chronicle of Higher Education. Chronicle.com. Retrieved 4 July 2015.
  127. ↑ Tamar Lewin (September 12, 2011). "Student Loan Default Rates Rise Sharply in Past Year". The New York Times. Retrieved 4 July 2015.
  128. ↑ Frontline (2010). College, Inc (Television production). PBS Distribution. ISBN 9781608832835. OCLC 643117456. Retrieved 15 July 2013.
  129. ↑ "Educating Sergeant Pantzke - Video | FRONTLINE". Pbs.org. Retrieved 4 July 2015.
  130. ↑ Michael Simkovic, Risk-Based Student Loans (2012)
  131. ↑ "Lawsuits Address Recruitment Practices at For-Profit Colleges". FRONTLINE. Retrieved 14 June 2015.
  132. ↑ Hollister K. Petraeus (21 September 2011). "For-Profit Colleges, Vulnerable G.I.'s". The New York Times. Retrieved 4 July 2014.
  133. ↑ William C Symonds (2000-02-07). "For-Profit Schools". BusinessWeek. The McGraw-Hill Companies, Inc. Retrieved 26 September 2008.
  134. 1 2 Sessions, Jennifer. (February 8, 2011). "Harkin Calls on For-Profit Colleges to End Deceptive Recruiting Practices". Senate HELP Committee. Accessed 4 February 2013.
  135. ↑ "U.S. GAO - For-Profit Schools: Experiences of Undercover Students Enrolled in Online Classes at Selected Colleges". Gao.gov. Retrieved 4 July 2015.
  136. ↑ Deming, David. (February, 2012). "The For-Profit Postsecondary School Sector: Nimble Critters or Agile Predators?" Center for Analysis Postsecondary education and employment.
  137. 1 2 Smole, David. (January 23, 2013). "Department of Education Final Rules for Postsecondary Education Programs That Prepare Students for Gainful Employment in a Recognized Occupation". Accessed February 4, 2013. Congressional Research Service Database.
  138. ↑ Federal Registrar. 76 FR 34385. "Program Integrity: Gainful Employment-Debt Measures". Accessed 2 February 2013.
  139. ↑ Smole, David. (January 23, 2013). "Department of Education Final Rules for Postsecondary Education Programs That Prepare Students for Gainful Employment in a Recognized Occupation". Accessed February 4, 2013. Congressional Research Service Database
  140. ↑ "Welcome to nginx!". Newamerica.net. Retrieved 4 July 2015.
  141. ↑ CBS News Video, "For-Profit Colleges Under Fire", September 18, 2010.
  142. ↑ Andrews, James G. "How We Can Resist Corporatization". AAUP. Archived from the original on 22 December 2010. Retrieved 19 March 2011.
  143. ↑ Greenberg: For-Profit Schools ... Subprime Redux? Herb Greenberg, 24 Jun 2010
  144. ↑ "For Profit Higher Education: The Failure to Safeguard the Federal Investment and Ensure Student Success" (PDF). Senate.gov. Retrieved January 1, 2018.
  145. 1 2 3 "Types of Accreditation, Education USA website". Useducation.com.pk. Archived from the original on 24 April 2008. Retrieved 19 March 2011.
  146. 1 2 3 "What is the Difference Between Regional and National Accreditation, Yahoo! Education website". Help.yahoo.com. Archived from the original on 5 December 2010. Retrieved 19 March 2011.
  147. 1 2 3 4 Scott Jaschik (October 19, 2005). "Demanding Credit". Insidehighered.com. Retrieved 4 July 2015.
  148. 1 2 3 4 Doug Lederman (February 26, 2007). "Tussling Over Transfer of Credit". Insidehighered.com. Retrieved 4 July 2015.
  149. 1 2 3 "Transfer of Credit". accsc.org. Retrieved 18 February 2017.
  150. 1 2 3 "Federalized Transfer of Academic Credit, Proposed Mandate Would Hurt Students AACRAO website" (PDF). Archived from the original (PDF) on 26 December 2010. Retrieved 19 March 2011.
  151. 1 2 "How For-Profit Colleges Stay In Business Despite Terrible Track Record". The Huffington Post. 19 September 2013. Retrieved 14 June 2015.
  152. ↑ "Attorneys General Come Down on Accreditor of For-profit Colleges - ProPublica". propublica.org. Retrieved 18 February 2017.
  153. ↑ "The For-Profit Kill Zone - WSJ". wsj.com. Retrieved 18 February 2017.
  154. ↑ "Feds Drops A-Bomb On For-Profit Colleges | The Daily Caller". dailycaller.com. Retrieved 18 February 2017.
  155. ↑ "Corinthian's failure (and U.S. role in it) fuels for-profit critics". Insidehighered.com. Retrieved 14 June 2015.
  156. ↑ "EDMC announces debt restructuring; expects improved capital structure". Pittsburgh Post-Gazette. 27 August 2014. Retrieved 14 June 2015.
  157. ↑ "New York judge finds Donald Trump liable for unlicensed school". Reuters. 16 October 2014. Retrieved 14 June 2015.
  158. ↑ "FBI — Fast Train Owner and Three Admissions Representatives Arrested for Theft of Federal Student Aid". FBI. Retrieved 14 June 2015.
  159. ↑ "Betsy DeVos sides with predatory for-profit colleges over America's students".
  160. 1 2 Lauerman, John (2010-08-04). "For-Profit Colleges Misled Students, Witnesses Say". Bloomberg. Retrieved 19 March 2011.
  161. ↑ Vasquez, Michael (2011-03-15). "For-profit schools grow – as do complaints – Education". Miami Herald. Retrieved 19 March 2011.
  162. ↑ Gentile, Carmen (March 4, 2010). "School Is Linked To Visa Fraud". The New York Times.
  163. ↑ Ramsey, Ross (2010-07-20). "Private, For-Profit Colleges Under the Microscope – Higher Education". The Texas Tribune. Retrieved 19 March 2011.
  164. ↑ "Whistleblower lawsuit against for-profit education company unsealed". California Watch. May 10, 2010. Retrieved 19 March 2011.
  165. ↑ "FY11 Official 300 Report" (ZIP). 2.ed.gov. Retrieved 4 July 2015.
  166. ↑ Daniel de Vise and Paul Kane, GAO: 15 for-profit colleges used deceptive recruiting tactics, The Washington Post, August 5, 2010
  167. ↑ "U.S. GAO - For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud and Engaged in Deceptive and Questionable Marketing Practices". Gao.gov. Retrieved 14 June 2015.
  168. ↑ "Kaplan College suspends admissions at Pembroke Pines campus following federal investigation". Sun-Sentinel. 2010-08-05. Retrieved 19 March 2011.
  169. ↑ "GAO-10-948T For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud and Engaged in Deceptive and Questionable Marketing Practices" (PDF). August 4, 2010. Retrieved 19 March 2011.
  170. ↑ "International Education Corporation : Newsroom". Iecglobal.com. 2010-08-27. Retrieved 19 March 2011.
  171. ↑ "Most Expensive Colleges". CNBC. 2009-10-19. Retrieved 19 March 2011.
  172. ↑ "Most Expensive Colleges for 2009–2010". CampusGrotto. 2009-10-19. Retrieved 19 March 2011.
  173. 1 2 Bloomberg August 4, 2010 article
  174. ↑ Mark Muckenfuss (August 6, 2010). "Two local colleges on list of deceptive schools". The Press-Enterprise.
  175. ↑ Cliff Kincaid (August 13, 2010). "Post Has Watergate Scandal of Its Own". Family Security Matters.
  176. ↑ Sun-Sentinel, August 5, 2010, local article
  177. ↑ "There is only one main campus in Illinois, in Chicago". Cot.edu. Archived from the original on 2 February 2011. Retrieved 19 March 2011.
  178. ↑ Jennifer Epstein (2011-03-14). "News: Has the Conversation Changed?". Inside Higher Ed. Retrieved 19 March 2011.
  179. 1 2 The Quick and the ED August 4, 2010 article
  180. ↑ "Blogs on: GAO targets Dallas schools in report on deceptive marketing". Liquida.com. Archived from the original on 3 September 2012. Retrieved 19 March 2011.
  181. ↑ Liquida August 4, 2010 article
  182. ↑ "Despite Lower Rates, More Than 650,000 Defaulted on Federal Student Loans For-Profit Colleges Account for Nearly Half of all Defaults" (PDF). Projectonstudentdebt.org. Retrieved 4 July 2015.
  183. ↑ "New Default Rate Data for Federal Student Loans: 44% of Defaulters Attended For-Profit Institutions". Pew Charitable Trusts. December 15, 2009. Retrieved 19 March 2011.
  184. ↑ For-Profit Colleges Capitalize on Pell Grant Revenue, The Chronicle of Higher Education, January 4, 2010.
  185. ↑ "TAXPAYER INFORMATION: Increased Sharing and Verifying of Information Could Improve Education's Award Decisions" (PDF). Government Accountability Office. July 2003.
  186. ↑ Finnegan, Leah (2010-08-06). "Degreed And Jobless, For-Profit College Graduate Turns To Stripping". Huffingtonpost.com. Retrieved 19 March 2011.
  187. ↑ "Stripper says for-profit college degree 'worthless'". Digitaljournal.com. August 8, 2010. Retrieved 19 March 2011.
  188. ↑ "For-Profit N.J. College Halts Recruiting of Homeless (Update1)". Businessweek. 2010-05-05. Retrieved 19 March 2011.
  189. ↑ Fed Up at the University of Phoenix, Higher Ed Watch, February 27, 2007.
  190. ↑ "Archived copy" (PDF). Archived from the original (PDF) on 21 August 2010. Retrieved 13 January 2015. (dead link: "Archived copy" (PDF). Archived from the original (PDF) on 21 August 2010. Retrieved 13 January 2015. , archived August 21, 2010)
  191. ↑ Dillon, Sam (February 11, 2007). "Troubles Grow for a University Built on Profits". The New York Times.
  192. ↑ "Archived copy". Archived from the original on 11 August 2011. Retrieved 13 January 2015. (dead link: "Archived copy". Archived from the original on 11 August 2011. Retrieved 13 January 2015. . Archived: August 11, 2011)
  193. ↑ "Cumulative Rates" (XLS). 2.ed.gov. Retrieved 4 July 2015.
  194. ↑ "gainful employment NPRM" (PDF). Archived from the original (PDF) on 5 November 2010. Retrieved 19 March 2011.
  195. ↑ Lewin, Tamar (August 13, 2010). "Data Show Low Loan Repayment at For-Profit Schools". The New York Times.
  196. ↑ "For-Profit College Financial Aid, Government Panel". C-SPAN. 2010-08-04. Retrieved 19 March 2011.
  197. ↑ Strong, Jonathan (2011-08-04). "Reporter". The Daily Caller. Retrieved 4 August 2011.
  198. ↑ Strong, Jonathan (2011-07-21). "Dem Senator Accused of Witness Tampering". Fox News. Retrieved 4 July 2015.
  199. ↑ "404" (PDF). accsc.org. Archived from the original (PDF) on 17 September 2010. Retrieved 18 February 2017.
  200. ↑ Lloyd, Marion (2009-12-17). "Inspector General's Warning to Accreditor Raises Fears Among For-Profit Institutions". Chronicle of Higher Education. Retrieved 19 March 2011.
  201. ↑ Anderson, Nick (2010-12-08). "GAO revises its report critical of practices at for-profit schools". The Washington Post.
  202. ↑ Los Angeles Times (13 August 2014). "Corinthian Colleges tells investors it is facing a criminal probe". latimes.com. Retrieved 14 June 2015.
  203. ↑ "Judge says lawsuit against Education Management can continue". Pittsburgh Post-Gazette. 6 May 2014. Retrieved 14 June 2015.
  204. ↑ "Consumer Financial Protection Bureau v. ITT Educational Services, Inc" (PDF). Republicreport.org. Retrieved 4 July 2015.
  205. ↑ "CFPB Sues For-Profit College Chain ITT For Predatory Lending". Consumer Financial Protection Bureau. Retrieved 14 June 2015.
  206. ↑ "As Feds Crack Down On For-Profit College, A Founder Heads To Prison For Fraud : NPR Ed : NPR". npr.org. Retrieved 18 February 2017.
  207. ↑ "Obama Administration Announces Final Rules to Protect Students from Poor-Performing Career College Programs" (Press release). United States Department of Education. October 30, 2014. Retrieved 16 January 2015.
  208. ↑ "Obama seeks to boost higher education spending and proposes some loan reforms that have bipartisan appeal - InsideHigherEd". Insidehighered.com. Retrieved 14 June 2015.
  209. ↑ https://www.usnews.com/news/education-news/articles/2017-07-10/trump-administration-begins-rewriting-for-profit-regulations
  210. ↑ Cohen, Patricia (September 29, 2017). "Veterans Agency Seeks to Scrap Ethics Law on For-Profit Colleges". Retrieved January 1, 2018 – via NYTimes.com.
  211. ↑ "For-Profit Groups Sue to Block Gainful Employment Rules". Insidehighered.com. Retrieved 14 June 2015.
  212. ↑ "Association of Private Sector Colleges and Universities v. Arne Duncan" (PDF). Career.org. Retrieved 4 July 2015.
  213. ↑ "For-profit colleges file lawsuit to halt new Obama administration regulations". Fox Business. Retrieved 14 June 2015.
  214. ↑ "Association of Private Sector Colleges and Universities v. Arne Duncan" (PDF). Apscu.org. Retrieved 4 July 2015.
  215. ↑ "For-Profit Herzing U. Converts to Nonprofit Status – The Ticker - Blogs - The Chronicle of Higher Education". Chronicle.com. Retrieved 14 June 2015.
  216. ↑ "If a For-Profit College Becomes a Non-Profit, Is That Good? Not Necessarily". The Huffington Post. 11 February 2013. Retrieved 14 June 2015.
  217. ↑ Rick Romell. "Herzing University becomes a nonprofit organization". Jsonline.com. Retrieved 14 June 2015.
  218. ↑ Michael McDonald (13 November 2014). "Grand Canyon Eyes $2 Billion Exit From For-Profit College Stigma". Bloomberg.com. Retrieved 14 June 2015.
  219. ↑ "Public Disclosure Notice" (PDF). HLCommission.org. Retrieved January 1, 2018.
  220. ↑ "Grand Canyon University denied switch to nonprofit status". ktar.com. Retrieved 18 February 2017.
  221. ↑ "Grand Canyon University denied request to switch to nonprofit status - ABC15 Arizona". abc15.com. Retrieved 18 February 2017.
  222. ↑ "Ashford University is latest big for-profit to attempt nonprofit conversion". insidehighered.com.

Bibliography

  • Angulo, A. (2016). Diploma Mills: How For-Profit Colleges Stiffed Students, Taxpayers, and the American Dream
  • Berg, G. (2005). Lessons from the Edge: For-profit and Nontraditional Higher Education in America
  • Best, J, and Best, E. (2014). The Student Loan Mess:How Good Intentions Created a Trillion-Dollar Problem
  • Blumenstyk, G. (2014). American Higher Education in Crisis?: What Everyone Needs to Know
  • Bousquet, M. (2008). How the University Works: Higher Education and the Low Wage Nation
  • Breneman, D. et al. (2006). Earnings from Learning: The Rise of For-profit Universities
  • Cappelli, P. (2015). Will College Pay Off?: A Guide to the Most Important Financial Decision You'll Ever Make
  • Chung, A. (2012). Choice of For-Profit College Economics of Education Review, v31 n6 p1084-1101.
  • Cottom, T. (2017). Lower Ed: How For-Profit Colleges Deepen Inequality in America (The New Press, 2017) online review
  • Cottom, T. (2014). For-Profits Are Us. AFT Higher Education On Campus 33(4), pp. 7–11.
  • Giroux, H. (2014). Neoliberalism's War on Higher Education
  • Goldrick-Rab, S. (2016). Paying the Price: College Costs, Financial Aid, and the Betrayal of the American Dream
  • Halperin, D. (2014). Stealing America's Future: How For-Profit Colleges Scam Taxpayers and Ruin Students' Lives
  • Hentschke, G. et al. (2010). For-Profit Colleges and Universities: Their Markets, Regulation, Performance, and Place in Higher Education
  • Johnson, B. et al. (2003). Steal This University: The Rise of the Corporate University and the Academic Labor Movement
  • Kinser, K. (2006). From Main Street to Wall Street: The Transformation of For-Profit Higher Education
  • Leach, T. (2008). The Impact of For-profit Privatization on Higher Education in the State of Massachusetts
  • Levin, H. (2001). Thoughts on For-Profit Schools
  • McGuire, M. (2012). Subprime Education: For-profit Colleges and the Problem with Title IV Student Aid Duke Law Journal, 62 (1): 119-160
  • Mettler, S. (2014). Degrees of Inequality: How the Politics of Higher Education Sabotaged the American Dream
  • Morey, A. (2004). Globalization and the Emergence of For-profit Education
  • Murphy, J. (2013). Mission Forsaken—The University of Phoenix Affair With Wall Street
  • Perini, M.(2011). A Phoenix Still in Ashes: For-Profit Open Admissions and the Public Good
  • Ruch, R. (2003). Higher Ed Inc.: The Rise of the For-Profit University
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.