When it comes to the topic of higher education in America, most of us will readily agree that through education the chances of a person improving the quality of their lives improves significantly. Where this agreement usually ends, however, is on the question of when are the benefits of a higher education outweighed by its cost? Whereas some are convinced that going to college and receiving a degree can only benefit a person, others maintain an economical approach and caution people to asses if the degree they are obtaining will find them employment that will allow for them to pay off the tens of thousands of dollars they may accumulate in student loans. While there are various non-profit private and public colleges that put the educational needs of the students first, problems concerning student debt seem to become more severe when dealing with for-profit colleges that are managed and governed by private organizations and corporations. Although student debt associated with for-profit colleges may seem of concern to only a small group of Americans, it should concern anyone who care about a person seeking to better their lives, only to be buried with debt due to corporate greed.
When comparing for-profit and non-profit colleges they both offer students a chance to obtain a higher education, yet the similarities end there. For-profit colleges are educational institutions that are operated by shareholders who run it as a business with no restrictions on salaries or other compensation. This means that surplus revenue may be used in any way they see fit, whether it be investing back into the school or distributing it amongst its shareholders and staff. Some examples of these various for-profit colleges are: DeVry University, Colorado Technical University, Webster University, Kaplan University, University of Phoenix, and ITT Technical Institute. These for-profit colleges offer numerous types of degrees that range from a vocational to a master’s degree. Non-profit colleges, however, operate under what is called a Non-Distribution Constraint, which means that a non-profit is prohibited from distributing its net earnings among individuals that oversee the organization. This isn’t to say that everyone at a non-profit college works for free, it just means that they are paid reasonable compensation for their work; and if any surplus revenue was to be made it would not be distributed among its staff, rather it is used help achieve the educational purpose of that non-profit college. Non-profit colleges consist of various public colleges such as state schools, junior colleges as well as private schools like Harvard and Yale.
Yale is committed to improving the world today and for future generations through outstanding research and scholarship, education, preservation, and practice. Yale educates aspiring leaders worldwide who serve all sectors of society. We carry out this mission through the free exchange of ideas in an ethical, interdependent, and diverse community of faculty, staff, students, and alumni. |
While it is true that both for-profit, as well as non-profit colleges often leave students with large amounts of debt upon graduation, many studies have been done to compare the differences of the two. One area that can be assessed is whether or not the respective university is doing everything it can to make its students successful upon graduation. In a 2010 study done by Franklin University they state that on average for-profit colleges only spend on average $3,017 per student for instructional costs versus $15,321 at a private non-profit, yet the average tuition after grants at a for-profit is $31,000 compared to $26,000 at a non-profit. When schools spend less on resources for their students, yet charge them more to attended, it can lead to negative results. In the same study, the authors state that only 28 percent of for-profit college students graduate with a 4-year degree, compared to 65 percent at a non-profit. Furthermore, a different study done by Rasansky Law firm states that 1 in 5 graduates from a for-profit default on their student loans, compared to only 1 in 25 from a non-profit. Even though many for-profit colleges claim they have the student’s best-interest in mind, these statistics tend to show otherwise.
Even with evidence indicating that many for-profits are putting the interest of their shareholders ahead of the students, it not to say that no one can be successful if they attend one of these colleges. Just as every college is different, so are the students that attend those colleges. While many students may have the necessary resources to attend a traditional non-profit college, others may not have the time, transportation or means, so an online for-profit schools may provide them a solution to help them obtain the higher education they seek. For example, in “In Defense of For-Profit College,” Carrie Sheffield argues, “For-profit schools enable low-income and racial minority students, including many who are non-traditional, to gain practical, skills-based training that better equips them for the marketplace relative to many traditional academic paths.” Furthermore, Sheffield explains that due to geographical constraints, only 18 percent of associate-degree students and 12 percent of students enrolled in certificate programs at for-profits have non-profit alternatives in their zip codes. This is an important point to acknowledge because if these for-profit colleges weren’t available in the zip codes with non-profit colleges, some people may have not had the access to further their education.
The mission of DeVry University is to foster student learning through high-quality, career-oriented undergraduate and graduate programs in technology, business and management. The university delivers its programs at campuses, centers and online to meet the needs of a diverse and geographically dispersed student population. |
While non-profit colleges don't have the same array of problems as their for-profit counterparts, it is not say that they don't have any at all. For example, in "The Globalization of America’s Colleges,” Laura Mckenna acknowledges that one problem consistent with non-profit colleges is high impaction rates due to significant increase in students from overseas, leading to many qualified students not being accepted. This is leading many qualified students to seek alternative ways to obtain the education they seek. For example, Julie Park a former graduate of a for-profit nursing program was one of these students that were qualified, yet could not find a non-profit nursing school accepting new students. When asked about her experience she said, “Even though I knew that going to for-profit would cost me twice as much as a local state school, I did not have the time to have my name on a wait list. They gave me no time frame of when I would have been admitted, hinting that it could be anywhere from a month to a year. So due to that, I decided to find an alternative, and for me the only one was a for-profit.” She also stated that she does not regret the decision she made, since it allowed for her to pursue her passion, yet she wished it could have come at a lower financial cost.
The problem with for-profit colleges like Devry University doesn’t lie within the education they provide, yet the marketing tactics used to lure students into attending their colleges. Many of these for-profit colleges use past graduate job placement success rate to help attract future students to their colleges, yet at times those same for-profit colleges inflate those numbers to make their school more desirable. For example, in “The For-profit College Conundrum,” Bourree Lam reports that thousands of for-profit students are applying to have their federal loans forgiven on the grounds that they were recruited on false and illegal pretenses. In the article she also states that the Department of Education announced that it would take action against Devry University for deceptive marketing claims.
The discussion regarding for-profit colleges and how they take advantage of students is in fact addressing the larger matter of why so much of their revenue comes from federal student aid. While for-profits colleges do use marketing tactics to lure students, what's more concerning is the amount of federal funding they receive. Although the majority of operating revenue for these for-profit colleges is from student tuition, however, a great deal of these students are receiving federal loans from the government. Due to this, much of the public has criticized the federal government for lending out so much money to students that are attending these for-profit colleges that have been proven to fail them. There is a “90-10” rule in place which for-profit colleges must abide by, meaning that no more that 90 percent of their operating revenue can come from student aid, yet these for-profit colleges have found loopholes. After 9/11, any veteran that has served more than 90 days in active duty is eligible for G.I. Bill benefits which help pay for the cost of college or job training. However, the 90-10 rule does not account for the G.I Bill, therefore allowing these for-profit schools to receive more than 90 percent of their operating revenue from federal aid. In “Obama's budget aims to eliminate for-profit colleges' GI Bill loophole,” Claire Zillman reports that, “Veteran enrollment at for-profit colleges has soared. Thirty-one percent of veterans attended for-profit schools in 2013, up from 23% in 2009, giving such institutions access to $1.7 billion in post-9/11 GI Bill benefits in the 2012-2013 academic year, up from $640 million in 2009-2010.” Furthermore, Zillman states that, “For-profits’ recruitment of veterans—especially those from the post-9/11 era, whose education benefits cover $19,000 per year in tuition for four years—has raised red flags with some lawmakers and the Obama administration because such institutions report poor graduation rates and are more expensive for the taxpayers funding the GI Bill.” This is an important point to acknowledge because whether a student graduates or succeeds upon graduation, the school still profits, leaving the student with the burden of that loan. If a student that was a veteran or received federal funding and later defaulted on that loan, then the burden then lies with the tax payers.
Ultimately, what is at stake in this scenario is corporations making higher education more of a burden than an asset. We need to make sure that higher education is available to anyone who seeks it, yet without the fear of ruining their financial future. While many may want to argue that quality low-cost education is impossible, Shai Reshef, founder of University of People, an accredited low-cost university, begs to differ. In his TED presentation "An Ultra-low-cost College Degree," he describes how he was able to successfully offer a low cost quality education:
We didn't need to reinvent the wheel. We just looked at what wasn't working and used the amazing power of the Internet to get around it. We set out to build a model that will cut down almost entirely the cost of higher education, and that's how we did it. First, bricks and mortar cost money. Universities have expenses that virtual universities don't. We don't need to pass these expenses onto our students. They don't exist. We also don't need to worry about capacity. There are no limits of seats in virtual university. Actually, nobody needs to stand at the back of the lecture hall. Textbooks is also something our students don't need to buy. By using open educational resources and the generosity of professors who are putting their material free and accessible, we don't need to send our students to buy textbooks. All of our materials come free. Even professors, the most expensive line in any university balance sheet, come free to our students, over 3,000 of them, including presidents, vice chancellors, professors and academic advisors from top universities such as NYU, Yale, Berkeley and Oxford, came on board to help our students. Finally, it's our belief in peer-to-peer learning. We use this sound pedagogical model to encourage our students from all over the world to interact and study together and also to reduce the time our professors need to labor over class assignments.
While we can’t stop corporations from luring students to their colleges or reduce the amount of students at existing non-profits, we can advocate for more colleges like University of the People and help spread Shai Reshef's model for a low-cost quality education.
Works Cited
Lam, Bourree. "The For-Profit College Conundrum." The Atlantic. The Atlantic Monthly Group, 11 Feb. 2006. Web. 25 May 2016.
Mckenna, Laura. "The Globalization of America’s Colleges." The Atlantic. Atlantic Monthly Group, 18 Nov. 2015. Web. 10 June 2016.
Park,Julie. “For-Profit Colleges.” Personal Interview. 10 June 2016.
Reshef, Shai. "An Ultra-low-cost College Degree." TED. TED Conferences, LLC, Mar. 2014. Web. 06 June 2016.
Sheffield, Carrie. "In Defense of For-Profit Colleges." Forbes. Forbes Media LLC, 29 May 2015. Web. 06 June 2016.
Shireman, Robert. "Perils in the Provision of Trust Goods Consumer Protection and the Public Interest in Higher Education." Center for American Progress. N.p., May 2014. Web. 10 June 2016.
Zillman, Claire. "Obama's Budget Aims to Eliminate For-profit Colleges' GI Bill Loophole." Fortune. Time Inc, 03 Feb. 2015. Web. 06 June 2016.
Lam, Bourree. "The For-Profit College Conundrum." The Atlantic. The Atlantic Monthly Group, 11 Feb. 2006. Web. 25 May 2016.
Mckenna, Laura. "The Globalization of America’s Colleges." The Atlantic. Atlantic Monthly Group, 18 Nov. 2015. Web. 10 June 2016.
Park,Julie. “For-Profit Colleges.” Personal Interview. 10 June 2016.
Reshef, Shai. "An Ultra-low-cost College Degree." TED. TED Conferences, LLC, Mar. 2014. Web. 06 June 2016.
Sheffield, Carrie. "In Defense of For-Profit Colleges." Forbes. Forbes Media LLC, 29 May 2015. Web. 06 June 2016.
Shireman, Robert. "Perils in the Provision of Trust Goods Consumer Protection and the Public Interest in Higher Education." Center for American Progress. N.p., May 2014. Web. 10 June 2016.
Zillman, Claire. "Obama's Budget Aims to Eliminate For-profit Colleges' GI Bill Loophole." Fortune. Time Inc, 03 Feb. 2015. Web. 06 June 2016.
Formal Reflection
I believe that this research essay demonstrates all the tools that the 1S/T pathway was given me. While I was given some direction in the process, it was to me to determine if the information I had gathered would support my main ideas. The process for this essay was unlike the others since I had to find the context that was to fill the body of my essay. My understanding of reading for the larger conversation helped with the process of weeding through various articles to find the ones that would work for my main idea. Before I could begin to write my essay I had to use my critical thinking skills to develop a prompt that would effectively help me write to my selected audience. I decided that I wanted to evaluate the various problems associated with for-profit colleges and propose what we can do to limit those problems.
My introduction clearly states what the body of the essay is going to be about and it raises the issue of for-profit colleges allowing for the reader to understand that I will be discussing these various problems. Before I could talk about the problems I made sure to clearly explain to my reader what a for-profit college and also informed them in what ways they were different from a non-profit school. While I was writing about the various problems with for-profit schools, I also gave examples of some of their benefits to make my essay a bit more credible. In paragraphs three and four I feel I did a good job of not only discussing their benefits but integrating some quotes from my readings to validate those examples. I was able to do that as well in the remaining paragraphs when I was discussing the problems with for-profit colleges. I also spoke about some problems that arise with non-profit schools to address the naysayers that are for for-profit colleges. I feel that I guided my reader through my essay smoothly and arrived at my conclusion effectively. In my conclusion I was able to summarize the body of the essay and also states my thoughts on what I feel can be done.
The one area in which I struggled before this class was with structure of an essay. I feel that this essay is formatted and structured very well. For example, in paragraph three I spoke about some the benefits of for-profit colleges then I was able to effectively transitions into paragraph four by referencing my point from the previous paragraph. I thoroughly proofread this essay and I feel it has minimal grammatical errors. I properly intergraded quotes and used italics and quotations when needed. I feel that this essay showcases not only my growth in this class, but my growth as a student.
My introduction clearly states what the body of the essay is going to be about and it raises the issue of for-profit colleges allowing for the reader to understand that I will be discussing these various problems. Before I could talk about the problems I made sure to clearly explain to my reader what a for-profit college and also informed them in what ways they were different from a non-profit school. While I was writing about the various problems with for-profit schools, I also gave examples of some of their benefits to make my essay a bit more credible. In paragraphs three and four I feel I did a good job of not only discussing their benefits but integrating some quotes from my readings to validate those examples. I was able to do that as well in the remaining paragraphs when I was discussing the problems with for-profit colleges. I also spoke about some problems that arise with non-profit schools to address the naysayers that are for for-profit colleges. I feel that I guided my reader through my essay smoothly and arrived at my conclusion effectively. In my conclusion I was able to summarize the body of the essay and also states my thoughts on what I feel can be done.
The one area in which I struggled before this class was with structure of an essay. I feel that this essay is formatted and structured very well. For example, in paragraph three I spoke about some the benefits of for-profit colleges then I was able to effectively transitions into paragraph four by referencing my point from the previous paragraph. I thoroughly proofread this essay and I feel it has minimal grammatical errors. I properly intergraded quotes and used italics and quotations when needed. I feel that this essay showcases not only my growth in this class, but my growth as a student.