For-Profit Colleges: The Dangers of Revenue-Motivated Education
Driven by profit motives, for-profit colleges have garnered significant attention – and skepticism – over the years. After rocketing to popularity in the early 2000’s, for-profit schools came under scrutiny for their costs, recruitment tactics, and ultimately, their value as educational institutions. The closures of two industry giants, ITT Tech and Corinthian Colleges, last decade helped to further shine a light on the bad actors in for-profit education.
Despite this negative reputation, for-profit colleges continue to increase their enrollment, even as non-profit college enrollment has declined. This is especially true of community colleges, which have seen a nearly double-digit decline in students enrolled.
With for-profit education once again on the rise, let’s take a close look at how these schools work, the allure they have for students, and the dangers they present to our current higher education system.
What are for-profit colleges?
Unlike their non-profit counterparts, for instance a state university that doesn’t operate to generate revenue, for-profit colleges function as businesses, with revenue generation as their central objective. While traditional non-profit schools can often be competitive, accepting a finite number of students each year, for-profit institutions instead operate with an emphasis on attracting and enrolling students
For-profit schools can then maximize revenue, often through high tuition fees charged for non-accredited programs. Open enrollment like this isn’t specifically a negative factor. The open enrollment format of for-profit schools attracts students who were not accepted at more competitive colleges and universities, giving them a place to continue their education. However, it is their underlying practices that cast a shadow on their purported educational goals.
These schools often prey on students from lower income brackets who need to take on high-interest loans (often provided through the school or an affiliated loan company) in order to pursue their education. We’ll take a closer look at this practice later in the article.
The Allure of For-Profit Colleges
Despite the negative reputation linked to for-profit colleges, students are still enrolling in ever higher numbers. What is drawing these students to for-profit schools? In many cases, these institutions offer standout features that set them apart from their primary competition: community colleges.
For-profit colleges often boast modern classrooms with cutting-edge technology. When compared to the struggling infrastructure of public two-year schools, for-profit schools look like a better choice.
The online or hybrid classes offered by for-profit colleges also appeal to those with outside responsibilities, such as jobs, children, etc., but these types of class formats come with challenges as well.
Often referred to as career colleges, for-profit schools are designed to provide students with the credentials they need, whether it is a degree or a certificate, to enter a specific career. This goal-oriented approach is appealing to many students, especially those looking to advance in a career they have already entered.
Lower Graduation Rates: A Troubling Reality
For all the appeal of for-profit schools, they ultimately may not result in the degree for which students set out. One glaring statistic that distinguishes for-profit colleges from non-profit institutions is significantly lower graduation rates. The quest for profits often compromises student support and the quality of education provided, resulting in a high attrition rate among students. Many students are left stranded, burdened by mounting debt, devoid of the credentials they sought, and with college credits that likely won’t transfer to other schools.
The Value of a Degree: The Elusive Promise
The aftermath of attending a for-profit college leaves graduates facing another harsh reality: diminished earning potential. Numerous studies have shown that individuals with degrees from for-profit institutions earn significantly less than their counterparts from non-profit colleges. The financial investment made by students does not yield the expected returns, casting a shadow of doubt on the value of a for-profit college degree.
“Compared to public higher education institutions, for-profit colleges have been criticized for being more expensive with similar or worse outcomes for graduates, who tend to be left with higher debt,” reveals a report from Public Agenda, a non-partisan research firm.
Predatory Practices: Preying on Vulnerability
For-profit colleges have gained notoriety for their predatory practices, preying on the hopes and dreams of vulnerable individuals. They often target those already facing financial hardship, including low-income students, poorly performing students, or individuals with a criminal record. By promising a path to a brighter future, these institutions trap students in a cycle of debt, making it increasingly challenging to repay their loans.
The Deception Game: Misleading Students
One of the most egregious sins committed by for-profit colleges is their penchant for deception. Misleading students about the true cost of education or their potential job prospects upon graduation has become an all-too-common practice. Countless individuals find themselves laden with exorbitant debt and limited job opportunities, their dreams shattered by the false promises of these profit-driven institutions.
Avoiding the For-Profit Trap
In the pursuit of education, students must exercise caution and critical thinking when considering for-profit colleges. The evidence speaks loudly against these institutions, revealing a troubling reality of high costs, low graduation rates, and diminished earning potential. It is imperative that students carefully evaluate their options, looking beyond the allure of flashy marketing campaigns and empty promises from for-profit schools.
A for-profit college may seem like a shortcut to success, but the risk is far too great. Instead, inspiring students should explore alternative avenues, such as public state universities and community colleges, which provide better value for their hard-earned money. By doing so, they can invest in a genuine education that nurtures their potential and offers a brighter future, free from the perils of for-profit colleges.
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