Private Sector For-Profit Universities & Colleges

[Date of Submission]

Abstract

In the United States, the private sector for-profit college and universities is expanding at exponential rates as currently it accounts for a growing and a substantial share of both degree-seeking and non-degree seeking students. In comparison to the entire for-profit sector, more students were enrolled by a single for-profit institution, known as, the University of Phoenix, in the year of 2010, which illustrate this dramatic growth. Relational to the outcomes, behaviors and nature of for-profit institutions, the public controversy and attention has been renewed attendant to this rapid growth. States are increasingly beginning to take action, although the federal interventions have largely dominated the public discourse on reform of the for-profit sector. By forcing states to confront the increasing problems within their borders, the debate about the appropriate relationship between for-profit institutions and government is purposefully relocated by the federal government. For this critical growing issues, student outcomes must be effectively traced by the Education Department, including, several amendments to be made in terms of legislative action, calling for more transparent disclosures of the cost of attendance and prohibition colleges from using federal financial-aid dollars. As part of the reauthorization of the Higher Education Act, most of the Legislations surrounding for-profit colleges must be considered, while budget negotiations must be encouraged by few of the proposals. The thirty two billion dollars in taxpayer dollars were not adequately safeguarded by the federal government that also failed to protect students from poor quality programs and misleading sales pitches.

Abstract2

Private Sector For-Profit Universities & College4

Introduction/Background Information4

Statement of the Problem: Drain on the Federal Financial Aid Programs or an Expansion of Educational Opportunity by the For-Profit Sector5

Literature Review8

The Value and Nature of For-Profit Colleges8

The Rules of Gainful Employment10

The Gain of Revenue through the Means of Students11

The Performance and Recommendation for Some College12

Conclusions/Recommendations13

Private Sector For-Profit Universities & College

Introduction/Background Information

The private sector for for-profit college and universities is expanding at exponential rate in the United States. Currently it accounts for a growing and a substantial share of both degree-seeking and non-degree seeking students. The sector is in the midst of a period of tremendous growth (McPherson & Schapiro, 1998). Twelve percent of college students are now enrolled in for-profit institutions in the country, whereas, total enrollment at for-profit institutions increased by two hundred and thirty five percent, from the year of 2000 to the year of 2012. In comparison to the entire for-profit sector, more students were enrolled by a single for-profit institution, known as, the University of Phoenix, in the year of 2010, which illustrate this dramatic growth.

The major higher education growth engine of the United States is the for-profit sector, however, does not own longstanding reputation and history of much of non-profit higher education in the country. Despite the rapid growth, this sector has always remained a part of controversies due to the nature of for-profit institutions and its relational outcomes on students and taxpayers (Winston, 2004). The controversial arguments that this sectors face include rapid increases in state ...