This means that in order to have a decent job, you usually need some type of degree or training beyond a high school education. Unfortunately, in years to come, this trend toward for-profit colleges could devastate our nation’s economy. The student loan debt in the US is roughly equal to the amount of US credit card debt, they is a frightening fact because for-profit student are more likely to default on their loans (they make up 44% of all student debt defaults), which could burst our student debt bubble. This would have devastating consequences for our government, tax payers, and possibly even the global economy. If our student debt bubble were to burst, like the housing bubble back in 2007-2009, it would have the potential to plunge us into another Great Depression. That, is
To conduct our research on restrictive provisions that colleges impose on students, we needed to collect copies of the contracts that students sign when they enroll at a college. Very quickly our research hit a snag. If we could find an enrollment contract used by an institution, then we could, from that document, make a determination about the use of the four types of restrictive provisions. The problem was that at most traditional nonprofit and public institutions, college representatives had no idea what we meant when we asked for their “enrollment contract” or their “enrollment agreement.” While all of the for-profit institutions in our sample used enrollment contracts, none of the public institutions did. (Ten of the thirty-four nonprofit
In the last ten years there has been a concerted movement in this country to re-design schools according to the Business Model--a movement which has recently gained an apparently unstoppable momentum. We hear continually of the university's need to open up "new markets," to learn new ways to "compete" and create new "customer bases"; simultaneously, we are bombarded with demands from the politicians and administrators who control our public funds to increase our "productivity" and "accountability." (1)
Kevin Carey takes a deep look into the controversies concerning for-profit colleges. For-profit colleges have received harsh criticism from institutions because of the way they recruit new students and use the loan system to gain even more of a profit, added on to the price of schooling. Even though only 10 percent of students get enrolled, a quarter of all federal aid goes to for-profit colleges. That seems extremely unfair. Carey begins with bringing us bad news, for-profit colleges do abuse the system of student loans, however they also bring educational opportunities for those who may have not had the option to attend college.
For-profit colleges target veterans because G.I. Bill was given to the veterans by the government, which helps veterans pay for their colleges’ tuition, up to $21000 a year. Also, veterans must be looking to seek degree and trying to get a good job after they get out from the military. So, that’s also one of the reasons for for-profit colleges to recruit them.
The federal government in July of 2015 signed a bill authorizing the “gainful employment rule” it was supposed to help alleviate one issue that was happening with for-profit schools, it dealt with people not receiving adequate income to pay their debts after job placement, even with their degree. The rule requires the school to prove the loan to income ratio meets a set standard, “The rule is expected to cause 1,400 programs, 99 percent of them at for-profit colleges, to be put at risk of losing eligibility to receive federal student aid.” (“Gainful-Employment Rule Survives For-Profit Group's Court Challenge.”) This bill was enacted but may now be causing a completely different issue. The University of Phoenix is now going to drop most of its
In 1976 the University of Phoenix was opened by John Sperling. Today this is still one of the the many for profit learning institutions, but at the time there was nothing new about for-profit colleges. These colleges have been around since the colonial era, and they were funded by entrepreneurs which in their time they were usually the high ranking clergymen. During the colonial era there were not enough places of education for everyone to learn, so these entrepreneurs created for-profit colleges, and they are still here today.
In today's society colleges take the easy route in order to make it easier on themselves when in reality they are hurting the students and in doing so damaging the work force at the same time. Colleges set the students up for failure in numerous ways. From finically, socially, and not properly preparing them for the real world. Colleges are solely responsible for these problems and it is up to them to fix it. The statistics and facts are their to prove these beliefs and it's about time changes are made to protect and aid the students.
For-profit schools should they be banned around the world? In "U. S Halts New Rules Aimed at abuses For-Profit colleges'‘ by Stacey Cowley and Patricia Cohen, This article is talking about how students, all around the worlds and getting financially put in dept. by for-profit schools and how they going back and forth trying to shut down the schools. Reading up on social media, they call for-profit predators for feeding them with promises that are never kept screwing them in the long run. hearing this, a for-profit school should be banned because they won't find a decent job, after graduation, they stay in high debt. after schools closed students have big issues.
It all goes back to what O’Shaughnessy said about colleges competing with one another. They have tunnel vision and are not seeing that the education of the students is the main priority. Colleges are run like a business, they act like a business, and at the end of the day they are a business. The only down side to that is that colleges start to feed the bigger hand above them. “Deeper loan debt means more profits for the financial sector, particularly suppliers of student loans. Executives of SLM Corporation, the giant student loan company known as Sallie Mae, have said that the rising costs of education will swell its bottom line for some time to come. Sallie Mae, as a quasi-federal agency, was supposed to make money available so that college would be
These boards, commonly referred to as a board of regents or a board of trustees …. ensure the financial integrity of the institution, and establish policies” (pg. 118). In the case of CCSF, their board and administration failed to govern the institution in a successful way. An independent study by the Fiscal Crisis and Management Assistance Team (2013) determined the following issues to be prevalent in the college, “lack of cooperation among cabinet-level leadership, deficit spending, the chancellor’s apparent lack of support for the business office, insufficient funds for maintenance, uneven reduction of staff throughout the business office, and extremely low morale” (Pg. 3). The cause of these issues was “due in part to a strong culture of a chancellor-centered decision-making process that excludes key cabinet level input with a significant influence of local politics” (Pg.
Perfect examples are Sweet Briar College, and Tennessee Temple University. Sweet Briar College a private all women’s Liberal Arts college in Virginia due to“insurmountable financial challenges” was shut down.Tennessee Temple University a Christian Liberal Arts College was to “shut down and merge with Piedmont International University another private Christian College 300 miles away in North Carolina”. Could you imagine what is going through the head of these colleges students right now? They are losing their second home, families and some maybe losing their chance at an education. Now imagine the impact of the future generation, these two colleges could save lives of many and even turn arounds lives of others. The issue here is that many feel as if there is no need for a
McDonalds is a multibillion dollar company and the key to their success relies on their uniformity and standardization of products and service. Many company’s and business seek to replicate their success one business venture in particular is the industry of for profit colleges. These for profit colleges are trying to copy McDonald’s supremacy over other competing business by trying to replicate there vast customer variety and fast quick service. In this specific case of profiting colleges they are trying to draw in more students then community, private and public colleges. What these for profit colleges are doing are occasionally illegal and feed their students false hopes of high paying jobs and brighter futures.
In higher education capitalism can be characterized as “embedded market logic and market practices”(Altbach, Bastedo, & Gumport, 2016) within institutions. As higher education becomes more entrepreneurial the focus on knowledge shifts from being perceived as a public good to a product to be capitalized on. State and federal policies market towards students because they perceive them as consumers of institutions. A positive of capitalism, is that you have schools competing with one another, which prevents schools from becoming stagnant, and keeps them evolving. It can aid in schools evaluating faculty strengths and help inform decisions to be made by college administrators. A negative is that a college can begin to operate like business. Some
We have met the enemy and he is us (Kelly, 1953)! That famous line uttered by Pogo sums up my feeling about public/ private universities, and the relationship that we have had with for-profit schools. It has been very easy for us to place the blame on the for-profit sector as causing the student debt crisis, but in this concept paper I wanted to discuss where traditional education might be at fault politically. In other words, how were we responsible for helping to create the debt monster through behavior and policy?