Improving The Standard Of Higher Education

1689 Words Jul 19th, 2016 7 Pages
For Americans seeking to improve their standard of living, higher education is the surest route available. Widespread education and training beyond high school is key to a stronger economy, reduced income inequality, healthy families, and vibrant communities.
At the same time, the American postsecondary education system is increasingly dependent on debt financing. A recent Center for American Progress analysis found that with more than $1 trillion in student-loan debt outstanding, as many as 40 percent of borrowers are not able to keep current on their payments. Given the individual and taxpayer costs of higher education and its critical role in the nation’s future, it is essential to ensure that teaching and learning in the nation’s colleges are of the highest possible quality.
This report examines why education is generally provided through nonprofit and public entities, as well as what makes for-profit companies in higher education different. Because quality is difficult to monitor and measure, investor pressures frequently lead for-profit institutions to compromise student and public needs in the pursuit of growth and profit. While all colleges seek revenue, nonprofit institutions are subject to a nondistribution constraint, meaning that they are overseen by boards without an ownership interest. This reduces the likelihood that students will be misled or overcharged in the pursuit of personal gain. The primary purpose of nonprofit status is to eliminate the potentially…
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