For-profit colleges in the U.S. are higher educational institutions that are run similarly to a business, with the primary goal of the institution being to gain revenue. Most traditional colleges are nonprofit, however, for-profit colleges have increased in popularity around past 25 years. Well-known examples of for-profit institutions include ITT Technical Institute, Everest College, University of Phoenix, and DeVry University. Most of them have little or no requirements to enroll and they operate on many campuses all across the U.S. The business aspect of for-profit colleges differentiates them from traditional, nonprofit colleges. The two engage in different practices and run slightly differently because only for-profit colleges exist to
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However, it seems that those who attend for-profit education struggle with the cost of college much more. For example, “a 2012 study discovered that 96% of for-profit college students took out loans, compared to 13% of students in community colleges and 48% in four-year public universities” (Schade 12). This would mean that only 4% of for-profit college students were able to afford the costs without any tuition support, an indication that the price of the education is too high for the people who are accessing it. The high cost leads to many more issues later on, as “about one in five for-profit students will default on their education loans within the first three years of repayment” (“Reform in Context of For-Profit Colleges” 2019). This is about double the rate of public institutions, which have a 10% default rate. Defaults occur when someone fails to make payments on their loan for a significant amount of time, and they have detrimental effects on the credit of the person defaulting. Some may say that the high default rate is due to many students already being in a problematic financial situation before enrolling, but it further highlights that these institutions target groups of people that they know are unable to afford the education services they provide. …show more content…
While it is true that for-profits specialize in career colleges, it is inaccurate to say that there are not comparable programs at traditional community colleges and other nonprofit institutions. It is also difficult to overlook the fact that many students in these programs would be more successful attending a community college, where tuition is significantly lower and student success rates are traditionally more favorable. One of the most in-demand areas of study are health services, something typically offered at both community colleges and for-profit colleges. But when the two are compared, it is clear that the less expensive, community college programs usually turn out more successful. “. . . students in a community college health program are more than twice as likely to complete their associate 's degree than are students in health programs at a for-profit institution (35 versus 17 percent)” (Deming et al.). Those who do graduate from a for-profit program are still worse-off than their community college counterparts, with data showing that “students from for-profit health programs are more than twice as likely as students from community college programs to be unemployed (19 versus 9 percent)” (Deming et al.). Even
However, it seems that those who attend for-profit education struggle with the cost of college much more. For example, “a 2012 study discovered that 96% of for-profit college students took out loans, compared to 13% of students in community colleges and 48% in four-year public universities” (Schade 12). This would mean that only 4% of for-profit college students were able to afford the costs without any tuition support, an indication that the price of the education is too high for the people who are accessing it. The high cost leads to many more issues later on, as “about one in five for-profit students will default on their education loans within the first three years of repayment” (“Reform in Context of For-Profit Colleges” 2019). This is about double the rate of public institutions, which have a 10% default rate. Defaults occur when someone fails to make payments on their loan for a significant amount of time, and they have detrimental effects on the credit of the person defaulting. Some may say that the high default rate is due to many students already being in a problematic financial situation before enrolling, but it further highlights that these institutions target groups of people that they know are unable to afford the education services they provide. …show more content…
While it is true that for-profits specialize in career colleges, it is inaccurate to say that there are not comparable programs at traditional community colleges and other nonprofit institutions. It is also difficult to overlook the fact that many students in these programs would be more successful attending a community college, where tuition is significantly lower and student success rates are traditionally more favorable. One of the most in-demand areas of study are health services, something typically offered at both community colleges and for-profit colleges. But when the two are compared, it is clear that the less expensive, community college programs usually turn out more successful. “. . . students in a community college health program are more than twice as likely to complete their associate 's degree than are students in health programs at a for-profit institution (35 versus 17 percent)” (Deming et al.). Those who do graduate from a for-profit program are still worse-off than their community college counterparts, with data showing that “students from for-profit health programs are more than twice as likely as students from community college programs to be unemployed (19 versus 9 percent)” (Deming et al.). Even