Essay on Demand For Higher Education Programs

830 Words 4 Pages
Demand for higher education has increased over the past few decades, partly because students recognize that earning a college degree dramatically increases job prospects and partly because government-supported financial aid programs have expanded. This rise in demand for higher education has prompted little action from not-for-profit institutions, however. Due to slow growth in state funding, these “traditional” education outlets are unable to bear the costs associated with enrolling enough students to satisfy the existing demand for education. In response to this education shortage, for-profit colleges and universities (FPCUs) have entered the market to satisfy education demand and to take advantage of government funding. They are now prevalent. In fact, according to data from the National Center for Education Statistics, FPCUs are responsible for nearly 30 percent of the total growth in postsecondary enrollment and degrees from 2000 to 2010. In theory, both parties should benefit. FPCUs can make money, and students neglected by not-for-profit institutions can receive an education that will increase their future earnings. But this is not happening. The incentive structure surrounding FPCUs offers them little motivation to increase student achievement, and that needs to change.
Also known as proprietary institutions, FPCUs are similar to their not-for-profit counterparts in some respects. There are 7,550 FPCUs in the United States, serving 2.5 million students, but…

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