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For-profit Colleges Rake in the Dough
Posted by on Tuesday, December 1, 2009 at 5:56 PM (PST)
According to a recent Associated Press analysis, the top five colleges receiving federal Pell Grant money were for-profit schools.
To read more, check out this USA Today article highlighting how much some of the federal government's increased higher education spending is benefitting for-profit centers like the University of Phoenix or DeVry University. These schools differ from traditional colleges (whether public or private) operating as non-profit institutions, meaning their business isn't conducted with the purpose or making a profit.
This news has people talking, weighing the pros and cons of this trend in education. Some say the public's money should be going only toward helping people get an education, not to enrich for-profit centers. They're also alarmed by statistics that show schools like the University of Phoenix generating 86% of its revenue from governmental sources. When that's the case, the school has incentives to enroll underqualified students in order to maximize profits, potentially diminishing the quality of that education and the government's investment in that student's degree.
Others contend that if we're to help more Americans get a college education, some Pell Grant money simply has to go toward non-profit schools. The argument is that traditional non-profit colleges simply can't handle the extra enrollment numbers that come from more Americans seeking a degree. In addition, for-profit schools tend to enroll more lower-income students, thus giving some students access to an education they might not have otherwise.
What do you think? Is this trend positive or negative? We'd love to hear your thoughts at info@universitydrive.com.
- Marc
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