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For-Profit Colleges: Neither Educationally nor Economically Equivalent

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Title: For-Profit Colleges: Neither Educationally nor Economically Equivalent
Language: English
Authors: Tucker, Frederick
Source: Research in Higher Education Journal. May 2021 40.
Availability: Academic and Business Research Institute. 147 Medjool Trail, Ponte Vedra, FL 32081. Tel: 904-435-4330; e-mail: editorial.staff@aabri.com; Web site: http://www.aabri.com
Peer Reviewed: Y
Page Count: 15
Publication Date: 2021
Document Type: Journal Articles
Reports - Research
Education Level: Higher Education
Postsecondary Education
Two Year Colleges
Descriptors: Proprietary Schools, Colleges, Outcomes of Education, Student Loan Programs, Debt (Financial), Public Colleges, Probability, Graduation Rate, Two Year Colleges, Bachelors Degrees, Associate Degrees, Federal Aid, Grants, Educational Legislation, Federal Legislation, Higher Education, Wages, Postsecondary Education, Student Characteristics
Laws, Policies and Program Identifiers: Stafford Student Loan Program, Pell Grant Program, Higher Education Act Title IV
Assessment and Survey Identifiers: Beginning Postsecondary Students Longitudinal Study
ISSN: 1941-3432
Abstract: Deregulation of for-profit colleges led to a precipitous rise in enrollments from 1990 to 2010. Since 2010, regulation, investigations, and sanctions have led to enrollment declines in for-profit postsecondary institutions. Initially barred from receiving Title IV federal funds, in the form of Pell Grants and Stafford Loans, for-profit colleges gained access to Title IV funds in 1972 on the grounds that these institutions were educationally equivalent to, or more economical than public and non-profit institutions. This paper examines Beginning Postsecondary Student longitudinal data from 2012/17, utilizing regression analyses to determine whether the for-profit college sector produces similar educational outcomes and student loan debt compared to the public higher education sector. Findings indicate that degree-seeking students enrolling in 2-year programs at for-profit colleges have approximately half the odds of degree attainment as demographically similar students at public colleges; students entering 4-year, for-profit programs have approximately a quarter the odds of achieving a bachelor's degree as their public college counterparts. Students at for-profit colleges, moreover, take on significantly greater student loan debt than demographically similar students at public colleges. Federal funds might better be spent subsidizing under-funded, overcrowded public colleges than enabling America's most disadvantaged students to incur debt at for-profit colleges that are neither educationally nor economically equivalent.
Abstractor: As Provided
Entry Date: 2021
Accession Number: EJ1296449
Database: ERIC
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  Data: For-Profit Colleges: Neither Educationally nor Economically Equivalent
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  Data: Academic and Business Research Institute. 147 Medjool Trail, Ponte Vedra, FL 32081. Tel: 904-435-4330; e-mail: editorial.staff@aabri.com; Web site: http://www.aabri.com
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  Data: Deregulation of for-profit colleges led to a precipitous rise in enrollments from 1990 to 2010. Since 2010, regulation, investigations, and sanctions have led to enrollment declines in for-profit postsecondary institutions. Initially barred from receiving Title IV federal funds, in the form of Pell Grants and Stafford Loans, for-profit colleges gained access to Title IV funds in 1972 on the grounds that these institutions were educationally equivalent to, or more economical than public and non-profit institutions. This paper examines Beginning Postsecondary Student longitudinal data from 2012/17, utilizing regression analyses to determine whether the for-profit college sector produces similar educational outcomes and student loan debt compared to the public higher education sector. Findings indicate that degree-seeking students enrolling in 2-year programs at for-profit colleges have approximately half the odds of degree attainment as demographically similar students at public colleges; students entering 4-year, for-profit programs have approximately a quarter the odds of achieving a bachelor's degree as their public college counterparts. Students at for-profit colleges, moreover, take on significantly greater student loan debt than demographically similar students at public colleges. Federal funds might better be spent subsidizing under-funded, overcrowded public colleges than enabling America's most disadvantaged students to incur debt at for-profit colleges that are neither educationally nor economically equivalent.
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    Languages:
      – Text: English
    PhysicalDescription:
      Pagination:
        PageCount: 15
    Subjects:
      – SubjectFull: Proprietary Schools
        Type: general
      – SubjectFull: Colleges
        Type: general
      – SubjectFull: Outcomes of Education
        Type: general
      – SubjectFull: Student Loan Programs
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      – SubjectFull: Debt (Financial)
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      – SubjectFull: Public Colleges
        Type: general
      – SubjectFull: Probability
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      – SubjectFull: Graduation Rate
        Type: general
      – SubjectFull: Two Year Colleges
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      – SubjectFull: Bachelors Degrees
        Type: general
      – SubjectFull: Associate Degrees
        Type: general
      – SubjectFull: Federal Aid
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      – SubjectFull: Grants
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      – SubjectFull: Educational Legislation
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      – SubjectFull: Federal Legislation
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      – SubjectFull: Higher Education
        Type: general
      – SubjectFull: Wages
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      – SubjectFull: Postsecondary Education
        Type: general
      – SubjectFull: Student Characteristics
        Type: general
      – SubjectFull: Stafford Student Loan Program
        Type: general
      – SubjectFull: Pell Grant Program
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      – SubjectFull: Higher Education Act Title IV
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      – SubjectFull: Beginning Postsecondary Students Longitudinal Study
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    Titles:
      – TitleFull: For-Profit Colleges: Neither Educationally nor Economically Equivalent
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