High rates of loan default, aggressive recruiting, higher than average tuition, low retention rates, and little job placement assistance — This is The For-Profit Higher Education Industry in our country.
By Suevon Lee | Originally Published at ProPublica . August 9, 2012, 9:24 AM | Photographic Credit; AngertAesthetics
The for-profit higher education industry was the target of a bruising report issued last week. Based on a two-year effort, the report detailed high rates of loan default, aggressive recruiting, higher than average tuition, low retention rates, and little job placement assistance. It was spearheaded by Sen. Tom Harkin, D-Iowa, a longtime critic of the industry. (ProPublica has written a number of pieces looking more closely at the explosive growth sector, including questionable recruiting and marketing.)
The report has provoked some pushback. The Association of Private Sector Colleges and Universities, a membership organization composed of accredited for-profit schools, issued a statement criticizing what it saw as “continued political attacks” on the for-profit sector. Saying the report “twists the facts to fit a narrative,” it went on to challenge several figures.
It didn’t contest the following numbers.[title=”3″]Growth[/fusion_title]
amount of federal Pell grants given to non-profit private institutions in 2000-01 school year (Source: 2000-2001 Title IV/Federal Pell Grant Program End of Year Report, U.S. Department of Education)
amount of federal Pell grants given to non-profit private institutions in 2009-10 school year (Source: 2009-2010 Title IV/Federal Pell Grant Program End of Year Report, U.S. Department of Education)
amount Apollo Group Inc. agreed to pay in December 2009 to settle a whistleblower lawsuit for tying University of Phoenix recruiters’ pay to student enrollment
number of recruiters hired by 30 for-profit higher education companies in 2010 — roughly, one recruiter per 49 students enrolled at a for-profit college
expense spent on instruction per full-time student at public institution in 2009-10 (Source: The Condition of Education 2012, National Center for Education Statistics)
expense spent on instruction per full-time student at private non-profit school in 2009-10 (Source: The Condition of Education 2012, National Center for Education Statistics)
percent of students who completed bachelor’s degree within four years at for-profit schools, matriculating in 2004 (Source: National Center for Education Statistics)
percent of students who completed bachelor’s degree within four years at public institutions, matriculating in 2004 (Source: National Center for Education Statistics)
percent of students who completed bachelor’s degree within four years at non-profit private schools, matriculating in 2004 (Source: National Center for Education Statistics)
Suevon Lee was an intern at ProPublica. She has previously worked as a reporter for the Ocala Star-Banner, where she covered courts and legal issues. She earned a master of studies in law degree from Yale Law School in 2012 and master’s degree from Northwestern University’s Medill School of Journalism in 2006.
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This piece was reprinted by EmpathyEducates with the kind permission of ProPublica. We are grateful for the the Author Suevon Lee’s research, reporting, and for what serves as a reminder, equal, equitable, higher education is essential!.
