Skip to comments.Are For-Profit Colleges Threatening Not-for-Profit Colleges?
Posted on 08/21/2013 1:34:01 PM PDT by William Tell 2
A lot of people have been complaining that for-profit colleges are merely diploma mills only interested in earning money and not educating students. Is this true?
That's not true, according to Frederick M. Hess, a resident scholar and director of education policy studies for the American Enterprise Institute, a free market think tank.
"It is a simple-minded assertion...
(Excerpt) Read more at mainstreet.com ...
While this may be an overgeneralization, colleges that subsist on Federal student loans (private or public) are just different ways of profiting off of feeding from the federal teat. Does anyone think that tenured profs and administrators at public colleges don’t make a lot of money?
The thing that both the for-profit and not-for-profit institutions are best at is signing up students for student loans and transferring the proceeds to their own accounts.
Considering how bloated and expensive the non-profit colleges have become, it's good that something is threatening them.
Indeed. There is no such thing as a not-for-profit university. It's just a matter of who pockets the profits.
In real numbers or as a percentage? It seems to me the media have been singing about the evils of the for profits for a couple of years now while ignoring the problem at the traditional non-profit colleges. I'm just wondering about the actual numbers since I've had the feeling that the non-profit schools were putting that bug in the drive by media's ear in an attempt to tighten regs against the for profits so that they (the non-profits) could ultimately fatten their own coffers.
My son in law (a successful big law attorney who has many years since paid off his student loans) tells me that in his single days his loans used to go into default pretty regularly - after he missed two payments. I've seen default defined in these articles as missing a year's worth of payments, but according to my son in law it's much easier than that, or at least it was for him.
Nonprofit schools are more prone to be diploma mills because there is no profit motive that holds them accountable for failure to teach. They are notorious for grade inflation, politically correct junk courses like women’s studies, and giving jocks and minorities a pass.
And the vastly disproportionate number of for-profit loans have gone to "minority" students, since it is for all practical purposes illegal to deny a loan to a "minority."
I’ve always found it interesting that once a student has qualified for loans the school gets the whole amount whether you need it or not - this is a rat money laundering operation, pure and simple. It comes from the taxpayers, is laundered through the loan and goes to a liberal money-sink (the college) to support liberal causes.
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