For-profit colleges have a long history of engaging in manipulative behavior to preserve the flow of Title IV funds to their schools while providing their students a poor education. After the quadrupling of undergraduate enrollment in for-profit colleges from 2000 to 2010, Obama-era regulations led to the closure of some high-profile schools and a slight decline in enrollment overall. Now, four years of Trump administration deregulation along with the COVID-19 recession have created a perfect storm for the resurgence of the for-profit sector. The incoming Biden administration must prioritize regulating for-profits in order to protect students and taxpayer dollars.
Director – Future of the Middle Class Initiative
There is an immense amount of evidence that for-profit colleges yield higher debts and poorer labor market outcomes for students when compared to other forms of postsecondary education.
For-profit colleges only enroll 10 percent of students but they account for half of all student-loan defaults. 71% of students in for-profit colleges borrow federal loans, as compared to only 49% of students in 4-year public schools. The average amount borrowed by students in for-profit colleges is nearly $2,000 higher than the amount borrowed in 4-year public schools. These differences in borrowing can’t be explained by demographic differences among the student populations; instead, they are mainly caused by the fact that the payday loans Indiana Vincennes average tuition at a for-profit college is over $10,000 higher than at a public community college.