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The Dangers of For-Profit Colleges
Dahn Shaulis, Ph.D.
Camden County College
What For-Profits Offer
1. convenience
2. 2nd chance
3. “training” rather than education
4. the promise of a real world vocation…
How many students are enrolled in 4profit colleges?
1.3-2.1 million enrolled
National Center for Education Statistics, 2012 National Student Clearinghouse, 2014
Many unaware the school is “for-profit”
The Problem of For-Profits
1. Some have low graduation rates 2. Some have limited student services 3. Credits unlikely to transfer
4. High tuition (3-4 X community colleges)5. Huge debts 6. High risk of default (average is 19%) 7. For some, a lifetime of “debt peonage”
“4Profit” Colleges in Our Area Public held stock corporations Privately held corporations
Anthem College (closed)Omega Institute (closed)Harris CollegeLincoln TechITT TechStrayer Devry University of Phoenix Online Colleges
They Sound Like Good Colleges…
Virginia College Florida Tech Colorado TechCalifornia Southern UniversityNorthcentral University The Art Institutes
Appearances can be deceiving…
A Danger to Whom?
• Targeted Students• Families • Community colleges • State colleges• HBCUs• Communities • Governments• Tax payers
Targeted Students• Veterans• Single moms• People of color• Immigrants • People w/ disabilities• The underemployed• “Socially isolated” people• Dropouts • Community College Students
Student Loan Defaults (US Department of Education)
4profit colleges have:
13% of the students….but
47% of all college loan defaults
Average Student Loan Debt*
Public university student $25,550
Private university student $32,300
For-profit school student $39,950
*The Institute for College Access and Success (2012)
Suzanne Mettler (Cornell)
David Halperin (Huffington Post)
Attorney David Halperin has discussed deceptive recruiting practices in detail
Aaron Glantz (PBS-CIR)
Aaron Glantz (Center for Investigative Reporting) has uncovered predatory practices at University of Phoenix
4Profit Money
• 80-90% of funds from federal government
• Title IV Funds • Veterans benefits• Workforce Investment
Board (Retraining)
• Billions towards advertising, marketing, lobbying
How 4Profit Education Works
1. $30 Billion from Government
2. Billions on advertising
3. High-pressure sales
4. Aggressive debt collections
Students recruited from “passion impulses, not real world demand”
Quote from Mike DiaGiacomo, former for-profit student
Billions in Advertising + Marketing
Billions in Advertising (Targeting White Working Class)
Adverting False or Misleading Claims
Misleading Ads
Some sound like more legitimate schools
Predatory “Lead Generators”
Consumers are led to recruiters through misleading ads
Lead Generators (Classes USA)
Lead Generator
Lead Generator
For-Profit College Lead Generator**David Halperin 12-13-2014
“Websites Promising Jobs and Medicaid Are Instead Bait for For-Profit College
Telemarketers”
Telephone Tactics (Career Education)*
“NOT GIVE TOO MUCH INFORMATION”
“create a sense of urgency”
*Eric Owens (Daily Caller) 11-7-2014
Aggressive Recruitment
Targeting Veterans
University of Phoenix
Art Institutes
Lincoln Tech
Argosy University
“‘Degree Mills’ Are Exploiting Veterans and Making Millions Off the GI Bill” (Aaron Glantz)
Predatory Facebook Ads
“For-profit colleges get harsh grades by former students” (Boston Globe)
“My degree is worthless” (CNN Money)
Rosalyn Harris, Everest graduate in criminal justice
"My sole purpose of going to school was bettering my life for me and my son," she said. "But now I wish I had never gone."
"They've ruined my life and the lives of many of my classmates“ (CNN Money)
• Ventrell Echols
• Lincoln Tech student in computer technology
• $20,000 in debt, now homeless
For-Profit Colleges Skewered in Popular Culture (2012)
For-Profits in Popular Culture
Mother Jones (2014)
“Screw U: How For-Profit Colleges Rip You Off”
Esquire (September 2014)
“How For-Profit Colleges Are Tainting American Education”
Investigations (see video)• 2010 Government
Accountability Office• 2012 Harkin Commission (US
Senate)• 32 States Attorneys General• California Attorney General
(2013-14)• Center for Investigative
Reporting (2014)• Federal Criminal Investigations
of Corinthian Colleges (2014)
Legislative Action to Regulate 4Profit Colleges*
• Connecticut
• Maryland
• California
• Michigan
*National Conference of State Legislatureshttp://www.ncsl.org/research/education/for-profit-colleges-and-universities.aspx
Consumer Lawsuits
Mississippi Center for Justice
Grads Sue Virginia College
Efforts to Regulate 4Profit Schools Hindered
1. “Gainful Employment” regulations to improve transparency, accountability
2. Court rules in favor of For-Profit colleges
3. New round of regulations. No sanctions until 2017.
4. At each step, 4-profit colleges resisted regs
“Doublespeak” Laws
‘‘Supporting Academic Freedom through Regulatory Relief Act’’(2015)
Attempts to reduce oversight
What can we do to resist 4profit colleges?
• Education (e.g. community groups, high school counselors)• Peer education (e.g. Phi Theta Kappa, Black Student
Union)• Counter-recruiting• “Culture jamming”• Remove 4profit recruiters from campus• Scrutinize teacher credentials • Notify state AGs• Call for criminal investigations• Call for State “Gainful Employment” Legislation
The 4profit Zombie College Crash
• Corinthian Colleges
• Art Institutes
• Local Trade Schools
“Opportunity Costs”
Less 4profit colleges means that more working students, and their families
can get on the right path, to community college… and beyond…
What can I do first?
Educate yourself and others about the “Dangers of 4profit Colleges”
Learn about viable alternatives in your area (local community colleges, 4-year public colleges).
Organize community to fight against for-profit colleges and promote viable alternatives (e.g. community colleges)
Student Debt Groups
• Debt Collective• Corinthian Collective • ITT Tech Warriors• I Am Ai
Vets—“GI Bill Comparison Tool”
http://benefits.va.gov/gibill/comparison
“College Navigator”
http://nces.ed.gov/collegenavigator/
