profit

The Beltway For-Profit Witch Trials

In mid September, the Congressional duo of George Miller and John Tierney joined their Senate colleagues Tom Harkin and Dick Durbin and the Department of Education in what might be described as the ongoing Beltway Witch Trials, where the alleged witches are the colleges that are legally organized on a profit-making basis. Messrs. Miller and […]

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Washington Hastens the Decline of For-Profits

The New York Times reported on Friday that the for-profit University of Phoenix will close 115 physical campuses, dispossessing around 13,000 students and putting 800 employees out of work. Why now? Tamar Lewin, the story’s author, suggested that competition from other for-profit universities played a role. But she also cited the “steady drumroll of negative […]

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Three Pell Grant Scams

Many politicians, including senators such as Tom Harkin and Dick Durbin, have grown indignant over the allegedly vast amounts of higher education money captured by for-profit institutions via the Pell Grant program. In fact, they consider this something of a scam. The truth, of course, is that throughout its history, including now, the vast majority […]

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Here’s How the Scholar Disappears

Political scientists Gary King (Harvard University) and Maya Sen (University of Rochester) recently produced a working paper titled, “The Troubled Future of Colleges and Universities.” Everyone interested in higher education should read it. The paper is instructive for those who want to understand how little most academics understand the crisis universities face. The problems with […]

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An Appeal for For-Profit Education

I chair the Governing Board at Grantham University in Kansas City, Missouri, an on-line, for-profit institution. Grantham diverges from Congress’ caricature of for-profits. More than ninety percent of its students have a military background; in fact, most of these students remain in active service as they pursue their degrees. Most are also first generation college […]

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The 12 Reasons College Costs Keep Rising

When asked the question, “Why do colleges keep raising tuition fees?” I give answers ranging from three words (“because they can”), to 85,000 (my book, Going Broke By Degree). Avoiding both extremes, let’s evaluate two rival explanations for the college cost explosion, followed by 12 key expressions that add more detail.

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‘The For-Profits Care More for Their Students’

Inside Higher Education has just released its second annual survey of college presidents on their views about major problems and challenges facing higher education. Over 1,000 presidents responded to the survey, from all types of schools, including over 50 for-profit institutions. To me the most interesting finding is that public and private schools have somewhat […]

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One Vote Here Against For-Profits

In his recent book, Change.edu: Rebooting for the New Talent Economy, Andrew Rosen writes: “It’s rare for anyone to lay out a clear case as to exactly what the problem is with private-sector education.” Ok, here it is. The problem is not, as Rosen says, that the pairing of the words for-profit and education makes […]

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A Foolish Move to Hobble For-Profit Colleges

Curbing for-profit colleges has been a goal of the Obama administration’s department of education. The plan was to erect regulatory hurdles to a very profitable product: online courses. In pursuit of that plan, the department issued a regulation last October requiring institutions offering Internet classes to seek permission from every state in which they enroll […]

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For-Profit v. Non-Profit Colleges–Which Use More Federal Cash?

Are for-profit colleges and universities getting a raw deal from the government compared to their more elitist peers in the private non-profit sector of American higher education? Vance H. Fried, writing in a recent policy analysis brief published by the libertarian think-tank, the Cato Foundation, argues just that.  Fried is a former private-practice attorney, oil […]

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Gainful Employment: A Detriment to Competition

Today the Obama Administration unveiled its long-anticipated and highly controversial final gainful employment (GE) regulation  that ties program eligibility for federal student aid to new metrics that are based on student loan repayment rates. Under the new GE rule, a vocational program can qualify as leading to gainful employment and remain eligible for federal aid […]

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Those Accountability Rules for Student Loans

This past Monday, the Department of Education proposed “gainful employment” rules that will regulate postsecondary vocational programs, primarily those offered by for-profit colleges, on the basis of their graduates’ ability to pay back their federal student loans. Proponents of higher education reform should welcome this move, but not because it targets unscrupulous actors in the […]

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The Short-Selling of For-Profit Education

The letter, dated June 17 and addressed to U.S. Education Secretary Arne Duncan, made serious allegations of wrongdoing in the already controversial for-profit education sector: that representatives of career colleges were trolling for students at homeless shelters, loading education debt onto a problem-beset population with poor prospects for academic success in order to funnel federal […]

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What Is For-Profit Education Really Like?

From the beginning, Frontline’s new documentary College, Inc seems tailor-made to scare the living daylights out of the series’ presumably progressive audience. Viewers are first introduced to Michael Clifford, an “educational entrepreneur” without a college degree who buys up struggling colleges and resurrects them as for-profit companies. Clifford is not only making a fortune off […]

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The Failure Of For-Profit Schools

Why do our for-profit colleges seem so disappointing? Why are they plagued by high levels of student debt, high loan-default percentages, dismal graduation rates, and third-rate reputations that lead some employers to reject their graduates automatically? Sure, back in the old days there were plenty of commercial schools whose sole raison d’etre was apparently to […]

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