What a load of crap.
The education industry is under no obligation to accept anyone that can't pay.
If the overhead was such a burden, they'd simply refuse to participate -- but they don't refuse. They don't refuse because they make plenty of money from borrowers.
The education industry has turned into General Motors. They don't make money selling educations. They make money by facilitating the financing of educations.
It’s not a load of crap at all. It’s a fact. And yes actually if they want to be accredited they are under obligation to accept financial aid payments, it’s part of being “equal opportunity” which is a requirement for all the federal accreditations.
Financial aid is the only department at a college that sees over 75% of students (generally they see almost all students). Federal regulations change every single year causing retraining to have to happen every single year.
You got it half right, they don’t make money selling education. But the rest you got wrong, they make money on big time sports, or research grants, or not at all. Financial aid is a trap for them, it’s a money bleed.