For-Profits: The Secret Is Out
On November 2, 2012, Tuition IO reported that for-profit colleges are starting to suffer from significant drops in enrollment lately likely caused by increased competition from nonprofit colleges as well as increasing numbers of students becoming informed about the dangers of for-profit schools. In short, the secret is out on for-profits enrollment drops. The author believes it is terrific news “that students are becoming aware of the problematic nature of for-profits and are seeking out a better value elsewhere.”
Enrollment at Apollo Group (a corporation that owns several for-profit schools) stock dropped by 14% last quarter. Similarly, The Washington Post Company’s, Kaplan, experienced a similar decline. According to the Department of Education, for-profit college enrollment has dropped by 2.8%. “Students are choosing to seek associates degrees from community colleges as a cost effective precursor to a four-year college, rather than enrolling in a for-profit college.” The author believes that looming threats of increased government regulations are inducing for-profits to place a heightened focus on student success, rather than just packing them into the classroom.
Students also seem to be letting go of the now dated assumption that higher education is a blanket solution to all of life’s problems and concerns about student debt and a difficult job market are inducing many to take a more proactive approach to their education by thoughtfully examining the value of the education for which they are essentially indenturing themselves.