I recently did a presentation for my public speaking class and thought the information might be helpful to people who read this blog. The presentation was about for profit schools. I actually took a couple of classes at a for profit school a couple of years ago and began to wonder if they were worth the cost as I was attending. I certainly don’t want to tell people what schools they should or should not attend, but I am going to share some of the information I came across while researching this project.
In American society today, we are taught that in order to be successful, we need to have an education. The more education you have, the more money you make, the more upwardly mobile you become. Because of this constant emphasis on education, people are looking for ways to return to school and pursue their goals. This need has fueled the rise in for profit education but are they worth it?
For profits schools are businesses that make money for its shareholders by offering a service. Non-profits are learning environments designed to serve student interests, helping them finish their college degrees and achieve career success. For profits appeal to non-traditional students because they offer night and online classes. Their offices are open during times that are generally more convenient for people who work full time jobs. They also offer accelerated degrees and promise to use your work experience as part of your degree.
On average, for profits schools tend to charge as much as tradition colleges and universities and tend to be more than community colleges. Where I live, students who are interested in getting an Associates in Business Administration have the option of going to Strayer University or going to a local community college, but Strayer is double the price of the community college. A four credit course at strayer is $1420 while four credits at the local community college is $620.
30% of for profit graduates say their education was not worth it. Why such a high rate of dissatisfaction? First, they think that by having an education, their salaries will rise. This is not always the case. According to U.S News, average salaries of graduates of for profit schools are about the same as people who have never attended college.
Graduates of for profit schools also have a harder time of it when they are applying for positions as well. Researchers at the University of Missouri-Columbia sent out 9,000 fictitious resumes of recent graduates. The resumes that listed for profit degrees were about 22% less likely to receive a callback from a prospective employer than applicants with similar degrees from nonselective non-profit schools.
Most troubling about for profit schools is the student loan default rate. Student loan default rates from for profit schools account for almost half of all defaulted student loans. As a matter of fact, the rise in the student default rate over the past 10 years is linked to the growth in for profit education that has been going on.
Now I will say that all for profits are not created equal. In my research there were definitely some schools that had a decent reputation. If you are really interested in attending a for profit school, be sure to research the school thoroughly. You don’t want to waste your time, and money if you are not going to receive any benefit from it.