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Are for-profit colleges hurting online education’s reputation?
Senate hearings and negative headlines have dogged for-profit schools, many with large web-based education programs
For-profit colleges account for about half of student loan defaults.
Congressional hearings and a barrage of criticism have put for-profit colleges on the defensive, and with many of the sector’s largest schools touting vast web-based course options, those who track the industry say for-profit programs could damage the public perception of online education.
Lawmakers from both major parties have defended the for-profit industry’s business practices, but Sen. Tom Harkin (D-Iowa) has remained one of the most vocal—and active—critics of for-profit colleges’ recruitment and student loan practices.
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Harkin has held five Senate hearings—including a July 21 roundtable discussion with for-profit college officials—and released three reports detailing the industry’s abuses. He has repeatedly pointed out that for-profit colleges educate 10 percent of American students and take in about 25 percent of federal student aid.
Harkin has remained complimentary of for-profit schools that don’t maintain high student loan default rates, but his reports have uncovered strategies for roping prospective students into federal loans that pay for pricey classes.
Many of the industry’s largest colleges with the most recognizable brand names, including the University of Phoenix and Kaplan University, have advertised using the anywhere, anytime convenience of online courses that appeal to adults with hectic schedules.
“Online education is quite distinct from the profit motive of [for-profit schools],” said Barmak Nassirian, associate executive director of the American Association of Collegiate Registrars and Admissions Officers (AACRAO), who spoke during Harkin’s July 21 roundtable discussion. “But the confluence comes when people see for-profits highlighting their online classes.”
3 Responses to Are for-profit colleges hurting online education’s reputation?
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VickyPhillips
August 4, 2011 at 1:57 pm
Great article, Dennis.
There is a national suspicion of large for-profit online college systems; and that suspicion comes from aggressive recruiting and online advertising.
We run a free service to check on online college accreditation (Diploma Mill Police) and over the last 5 years of the top 10 online schools that consumers ask about 8 out of the top 10 are NOT the real scam degree mills that sell cheap paper pedigrees — of which there are hundreds — BUT the real accredited schools such as Phoenix and Kaplan who use hyper aggressive marketing and who have seen a lot of press for their student recruitment practices.
Consumers are concerned, yes.
There is national reputation issue with for-profit online colleges and this article does a great job of laying out the issues and actions.
Online education itself has a reputation problem — and the large for-profit chains have not helped by applying tactics often associated with high pressure car sales to the education arena.
Vicky Phillips
GetEducated
dory.morris
August 5, 2011 at 8:39 pm
Great article about the problems with aggressive recruiting and advertising and how that can change the perception of them. There are diploma mills out there that charge you thousands, yet you only get a little piece of paper that may not help. Conversely, there are many reputable online colleges that are truly in the business of helping non-traditional students have the same options of higher education as those straight out of high school.
dfarren149
August 8, 2011 at 3:42 pm
Some how no one seems to correlate the high unemployment rate with increased student loan defaults – seems to me there may be a link.