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For-Profit Colleges

"For Profit Higher Education: The Failure to Safeguard the Federal Investment and Ensure Student Success"

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After a two-year investigation of for-profit colleges, a Senate committee has released a report critical of the sector’s practices, described as often putting business concerns above students’ interests.

The 800-page report, compiled by the Health, Education, Labor, and Pensions Committee, looked at 30 for-profit higher education companies. It says those schools enroll students with modest financial resources who must pay high tuition and take out significant student-loan debt. Too often, students quit and are left with loans to repay, but not the degree or certificate needed to get a higher-paying job.

The report also says many for-profit colleges fail to make the necessary investments in student-support services. In 2010, such colleges spent 23 percent of their revenue on marketing and recruiting, and 17 percent on instruction.

Vol. 31, Issue 37, Page 5

Published in Print: August 8, 2012, as For-Profit Colleges
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