What lies ahead for for-profits

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I just read an article in the Denver Post about the potential for increased regulations for for-profit institutions. We all are aware of the great success that University of Phoenix, Walden University and ITT Technical Institute have all had in recent years, capturing part of the $12 billion in annual revenues for for-profits. The convenience offered to students is something that many working adults can't refuse. You can't help but see a commercial or billboard for these types of institutions as quite often they spend upwards of 25% of their total revenue on marketing. Senior marketing people at most traditional schoosl will  likely never see the day that their budgets look like this. The high profit margins may become a thing of the past as the U.S. Department of Education has proposed reviewing recruiting and tuition practices within the for-profit industry. But Wall Street wants the excitement of higher enrollments, higher revenue and higher stock prices. These types of schools often rely on low-income students who receive government-sponsored loans and grants and the regulations have been few and far between. Regulators are now monitoring graduates who default on loads, retention and graduation rates. Future regulations may involve comparing student earning potential compared to loan debt and job placement rates. A profitable industry will most likely continue to be profitable but with these measures in place, it appears the student may be more protected in the future. 

Dana Edwards

 

 

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This page contains a single entry by Dana Edwards published on January 20, 2010 4:36 PM .

Financial Aid Strategies for 2010 was the previous entry in this blog.

Just when I think I'm out..... is the next entry in this blog.

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