For-profit colleges

Another Change to 'Gainful Employment' Regs

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Proposed rule would ease requirements for approval for new vocational programs.

Serving Soldiers?

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The U.S. Senate is flirting with policies that could harm for-profit colleges' success with veterans and active-duty military students.

Online and Outsourced

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Recommendation to create Nevada Virtual College, 2-year college to be run by outside vendor, provokes backlash from faculty members and some administrators.

For-Profit Seal of Approval

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A trade group has created standards of conduct for the industry, and a foundation to enforce them. But will enough key players sign on?

For-Profits and the False Claims Act

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Developments in two whistleblower lawsuits raise prospect that commercial colleges could face more U.S. pressure in the courts.

For-Profit Debate Redux

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Senate roundtable features continued criticism of the sector -- and continued pushback against more regulation.

Stepping Out

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With sector under continued attack, 20 for-profit colleges -- all regionally accredited -- seek to distinguish themselves with increased transparency.

Going After 'Gainful'

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WASHINGTON -- Weeks after the U.S. Education Department issued softened regulations designed to ensure that vocational programs prepare graduates for "gainful employment," House Republicans made abundantly clear Friday that, in their view, the rules had not been eased nearly enough, and that they would continue to oppose them.

Targeting, or Serving, Needy Students?

Can we agree on this much?

That a large number of academically gifted and economically affluent students (or their parents) have become savvy consumers, getting their first two years of general education courses out of the way at low-cost community colleges rather than pricier state schools and liberal arts colleges?

That by doing so, these would-be competitive admissions students are taking up a large number of slots at community colleges that would otherwise be filled by less academically gifted or less economically affluent students?

That private nonprofit schools, meanwhile, are maintaining their competitive admissions edge by providing more merit-based tuition discounts rather than need-based tuition discounts? That by doing so, these schools become less and less of an option for those less fortunate?

And that, as the number of well-paying blue collar jobs shrinks in response to the changing nature of the economy, the American middle class must either contract, or the skills needed to gain and retain a well-paying job must somehow expand?

I hope we can find consensus around those points. Most people can at least agree on the connection between college education and well-paying jobs, and the need to up-skill the American workforce in order to defend a society in which the benefits of middle class living are widely shared and enjoyed. Most can also agree that higher education access is shrinking in response to a variety of external pressures, including state budget cuts to higher education and a more consumer-savvy insistence on tuition dollar value.

Now we reach the question where many people disagree. Do less well academically prepared, less affluent individuals deserve an opportunity to receive a higher education? And, if so, should they attend institutions best situated to respond to their particular academic, social and emotional needs, or should they be forced to accept whatever public school option may be available -- regardless of the institution’s track record in retaining and graduating students?

These are the questions at the heart of the current debate surrounding private sector colleges and universities (PSCUs). These institutions cost the student more to attend than a public school does, but, through generous subsidies, taxpayers pay the bulk of education costs at community colleges, not students. As a result, the absolute cost of postsecondary attendance is actually less at the private sector alternative. The Institute for Higher Education Policy recently issued a report about low-income adults in postsecondary education, noting -- as many in higher education have long been aware -- that a significant percentage of low income and minority students attend PSCUs and community colleges. From the perspective of our critics, PSCUs “target” these students while community colleges “serve” them.

Both types of institutions operate in what is largely an open admissions environment (although my own institution does not). Both serve the adult student, who is often financially independent. Both strive to provide students with an education that facilitates career-focused employment (although community colleges wear many other postsecondary hats as well). Both use advertising as well as word of mouth referrals to attract students. But many PSCU students have already attended a community college and opted out for various reasons, including the long waits to enter the most popular programs, large class sizes and inflexible schedules. These problems are all made worse by state budget cuts to higher education.

PSCU students do pay more out of their own pockets than do community college students, but PSCU students see the cost justified by what they receive in return. This value expresses itself in greater individual attention and support … in having confidence in academic skills restored where they may be flagging … in gaining new motivation to succeed and seeing that motivation reinforced through success itself ... and in making the connection between classroom learning and employable skills real and direct.

Two-year PSCU institutions graduate students at three times the rate of community colleges. Placement rates are the bottom line on career-focused education, however, and while community colleges offer lower-cost career programs without outcome metrics, PSCUs must match their career education offerings with real placement of students in relevant jobs. Again, PSCU students see this outcomes-based approach as a difference worth paying for.

In this broader context, the irony of PSCUs being accused of “targeting” students becomes clear. Apparently where some see targeting of low income and minority students unable to make informed decisions about their futures, we see tailoring of postsecondary education to suit a nontraditional student population -- and a better fit all around.

Author/s: 
Arthur Keiser
Author's email: 
newsroom@insidehighered.com

Arthur Keiser is chairman of the Association of Private Sector Colleges and Universities and chancellor of Keiser University.

The For-Profit Option

As faculty jobs evaporate elsewhere, hiring is strong in a non-traditional sector. David Clinefelter discusses the qualities that are important to those doing the hiring.

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