Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
The Dangers of For-Profit Colleges
Dahn Shaulis, Ph.D.
Camden County College
What For-Profits Offer
1. convenience
2. 2nd chance
3. “training” rather than
education
4. the promise of a real
world voc...
How many students are enrolled in
4profit colleges?
1.3-2.1 million enrolled
National Center for Education Statistics, 201...
The Problem of For-Profits
1. Some have low graduation rates
2. Some have limited student services
3. Credits unlikely to ...
“4Profit” Colleges in Our Area
Public held stock corporations
Privately held corporations
Anthem College (closed)
Omega In...
They Sound Like Good Colleges…
Virginia College
Florida Tech
Colorado Tech
California Southern University
Northcentral Uni...
Appearances can be deceiving…
A Danger to Whom?
• Targeted Students
• Families
• Community colleges
• State colleges
• HBCUs
• Communities
• Governments...
Targeted Students
• Veterans
• Single moms
• People of color
• Immigrants
• People w/ disabilities
• The underemployed
• “...
Student Loan Defaults
(US Department of Education)
4profit colleges have:
13% of the students….but
47% of all college loan...
Average Student Loan Debt*
Public university student $25,550
Private university student $32,300
For-profit school student ...
Suzanne Mettler (Cornell)
David Halperin (Huffington Post)
Attorney David Halperin has
discussed deceptive recruiting
practices in detail
Aaron Glantz (PBS-CIR)
Aaron Glantz (Center for
Investigative Reporting) has
uncovered predatory
practices at University o...
4Profit Money
• 80-90% of funds from
federal government
• Title IV Funds
• Veterans benefits
• Workforce Investment
Board ...
How 4Profit Education Works
1. $30 Billion from Government
2. Billions on advertising
3. High-pressure sales
4. Aggressive...
Students recruited from “passion
impulses, not real world demand”
Quote from Mike
DiaGiacomo, former for-
profit student
Billions in Advertising + Marketing
Billions in Advertising
(Targeting White Working Class)
Strayer Targets People of Color
Slick University of Phoenix Ads
(see Video)
Adverting False or Misleading Claims
Misleading Ads
Some sound like more
legitimate schools
Predatory “Lead Generators”
Consumers are led to
recruiters through
misleading ads
Lead Generators (Classes USA)
Lead Generator
Lead Generator
For-Profit College Lead Generator*
*David Halperin 12-13-2014
“Websites Promising Jobs and Medicaid Are
Instead Bait for For-Profit College
Telemarketers”
Telephone Tactics (Career Education)*
“NOT GIVE TOO MUCH INFORMATION”
“create a sense of urgency”
*Eric Owens (Daily Calle...
Aggressive Recruitment
Targeting Veterans
University of Phoenix
Art Institutes
Lincoln Tech
Argosy University
“‘Degree Mills’ Are Exploiting Veterans and Making
Millions Off the GI Bill” (Aaron Glantz)
Predatory Facebook Ads
“For-profit colleges get harsh grades by former
students” (Boston Globe)
“My degree is worthless”
(CNN Money)
Rosalyn Harris, Everest
graduate in criminal justice
"My sole purpose of going to
sch...
"They've ruined my life and the lives of
many of my classmates“ (CNN Money)
• Ventrell Echols
• Lincoln Tech student in
co...
College Inc. (PBS 2010) see Trailer
For-Profit Colleges Skewered in
Popular Culture (2012)
For-Profits in Popular Culture
Mother Jones (2014)
“Screw U: How For-Profit
Colleges Rip You Off”
Esquire (September 2014)
“How For-Profit Colleges
Are Tainting American
Education”
Jon Oliver Rips On For-Profit Colleges
(2014)
University of Phoenix (Redacted 2014)
Investigations (see video)
• 2010 Government
Accountability Office
• 2012 Harkin Commission (US
Senate)
• 32 States Attorn...
Legislative Action to Regulate 4Profit
Colleges*
• Connecticut
• Maryland
• California
• Michigan
*National Conference of ...
Consumer Lawsuits
Mississippi Center for Justice
Grads Sue Virginia College
Efforts to Regulate 4Profit Schools
Hindered
1. “Gainful Employment” regulations to improve
transparency, accountability
2...
“Doublespeak” Laws
‘‘Supporting Academic
Freedom through
Regulatory Relief Act’’
(2015)
Attempts to reduce oversight
What can we do to resist 4profit colleges?
• Education (e.g. community groups, high school
counselors)
• Peer education (e...
The 4profit Zombie College Crash
• Corinthian Colleges
• Art Institutes
• Local Trade Schools
“Opportunity Costs”
Less 4profit colleges means
that more working students,
and their families
can get on the right path, ...
What can I do first?
Educate yourself and others about the “Dangers of
4profit Colleges”
Learn about viable alternatives i...
Student Debt Groups
• Debt Collective
• Corinthian Collective
• ITT Tech Warriors
• I Am Ai
Vets—“GI Bill Comparison Tool”
http://benefits.va.gov/gibill/comparison
“College Navigator”
http://nces.ed.gov/collegenavigator/
The danger of for profit colleges ii
Upcoming SlideShare
Loading in …5
×

The danger of for profit colleges ii

376 views

Published on

What people should know before they choose a college.

Published in: Education
  • Be the first to comment

  • Be the first to like this

The danger of for profit colleges ii

  1. 1. The Dangers of For-Profit Colleges Dahn Shaulis, Ph.D. Camden County College
  2. 2. What For-Profits Offer 1. convenience 2. 2nd chance 3. “training” rather than education 4. the promise of a real world vocation…
  3. 3. How many students are enrolled in 4profit colleges? 1.3-2.1 million enrolled National Center for Education Statistics, 2012 National Student Clearinghouse, 2014 Many unaware the school is “for-profit”
  4. 4. The Problem of For-Profits 1. Some have low graduation rates 2. Some have limited student services 3. Credits unlikely to transfer 4. High tuition (3-4 X community colleges) 5. Huge debts 6. High risk of default (average is 19%) 7. For some, a lifetime of “debt peonage”
  5. 5. “4Profit” Colleges in Our Area Public held stock corporations Privately held corporations Anthem College (closed) Omega Institute (closed) Harris College Lincoln Tech ITT Tech Strayer Devry University of Phoenix Online Colleges
  6. 6. They Sound Like Good Colleges… Virginia College Florida Tech Colorado Tech California Southern University Northcentral University The Art Institutes
  7. 7. Appearances can be deceiving…
  8. 8. A Danger to Whom? • Targeted Students • Families • Community colleges • State colleges • HBCUs • Communities • Governments • Tax payers
  9. 9. Targeted Students • Veterans • Single moms • People of color • Immigrants • People w/ disabilities • The underemployed • “Socially isolated” people • Dropouts • Community College Students
  10. 10. Student Loan Defaults (US Department of Education) 4profit colleges have: 13% of the students….but 47% of all college loan defaults
  11. 11. Average Student Loan Debt* Public university student $25,550 Private university student $32,300 For-profit school student $39,950 *The Institute for College Access and Success (2012)
  12. 12. Suzanne Mettler (Cornell)
  13. 13. David Halperin (Huffington Post) Attorney David Halperin has discussed deceptive recruiting practices in detail
  14. 14. Aaron Glantz (PBS-CIR) Aaron Glantz (Center for Investigative Reporting) has uncovered predatory practices at University of Phoenix
  15. 15. 4Profit Money • 80-90% of funds from federal government • Title IV Funds • Veterans benefits • Workforce Investment Board (Retraining) • Billions towards advertising, marketing, lobbying
  16. 16. How 4Profit Education Works 1. $30 Billion from Government 2. Billions on advertising 3. High-pressure sales 4. Aggressive debt collections
  17. 17. Students recruited from “passion impulses, not real world demand” Quote from Mike DiaGiacomo, former for- profit student
  18. 18. Billions in Advertising + Marketing
  19. 19. Billions in Advertising (Targeting White Working Class)
  20. 20. Strayer Targets People of Color
  21. 21. Slick University of Phoenix Ads (see Video)
  22. 22. Adverting False or Misleading Claims
  23. 23. Misleading Ads Some sound like more legitimate schools
  24. 24. Predatory “Lead Generators” Consumers are led to recruiters through misleading ads
  25. 25. Lead Generators (Classes USA)
  26. 26. Lead Generator
  27. 27. Lead Generator
  28. 28. For-Profit College Lead Generator* *David Halperin 12-13-2014
  29. 29. “Websites Promising Jobs and Medicaid Are Instead Bait for For-Profit College Telemarketers”
  30. 30. Telephone Tactics (Career Education)* “NOT GIVE TOO MUCH INFORMATION” “create a sense of urgency” *Eric Owens (Daily Caller) 11-7-2014
  31. 31. Aggressive Recruitment
  32. 32. Targeting Veterans University of Phoenix Art Institutes Lincoln Tech Argosy University
  33. 33. “‘Degree Mills’ Are Exploiting Veterans and Making Millions Off the GI Bill” (Aaron Glantz)
  34. 34. Predatory Facebook Ads
  35. 35. “For-profit colleges get harsh grades by former students” (Boston Globe)
  36. 36. “My degree is worthless” (CNN Money) Rosalyn Harris, Everest graduate in criminal justice "My sole purpose of going to school was bettering my life for me and my son," she said. "But now I wish I had never gone."
  37. 37. "They've ruined my life and the lives of many of my classmates“ (CNN Money) • Ventrell Echols • Lincoln Tech student in computer technology • $20,000 in debt, now homeless
  38. 38. College Inc. (PBS 2010) see Trailer
  39. 39. For-Profit Colleges Skewered in Popular Culture (2012)
  40. 40. For-Profits in Popular Culture
  41. 41. Mother Jones (2014) “Screw U: How For-Profit Colleges Rip You Off”
  42. 42. Esquire (September 2014) “How For-Profit Colleges Are Tainting American Education”
  43. 43. Jon Oliver Rips On For-Profit Colleges (2014)
  44. 44. University of Phoenix (Redacted 2014)
  45. 45. Investigations (see video) • 2010 Government Accountability Office • 2012 Harkin Commission (US Senate) • 32 States Attorneys General • California Attorney General (2013-14) • Center for Investigative Reporting (2014) • Federal Criminal Investigations of Corinthian Colleges (2014)
  46. 46. Legislative Action to Regulate 4Profit Colleges* • Connecticut • Maryland • California • Michigan *National Conference of State Legislatures http://www.ncsl.org/research/education/for-profit- colleges-and-universities.aspx
  47. 47. Consumer Lawsuits Mississippi Center for Justice Grads Sue Virginia College
  48. 48. Efforts to Regulate 4Profit Schools Hindered 1. “Gainful Employment” regulations to improve transparency, accountability 2. Court rules in favor of For-Profit colleges 3. New round of regulations. No sanctions until 2017. 4. At each step, 4-profit colleges resisted regs
  49. 49. “Doublespeak” Laws ‘‘Supporting Academic Freedom through Regulatory Relief Act’’ (2015) Attempts to reduce oversight
  50. 50. What can we do to resist 4profit colleges? • Education (e.g. community groups, high school counselors) • Peer education (e.g. Phi Theta Kappa, Black Student Union) • Counter-recruiting • “Culture jamming” • Remove 4profit recruiters from campus • Scrutinize teacher credentials • Notify state AGs • Call for criminal investigations • Call for State “Gainful Employment” Legislation
  51. 51. The 4profit Zombie College Crash • Corinthian Colleges • Art Institutes • Local Trade Schools
  52. 52. “Opportunity Costs” Less 4profit colleges means that more working students, and their families can get on the right path, to community college… and beyond…
  53. 53. What can I do first? Educate yourself and others about the “Dangers of 4profit Colleges” Learn about viable alternatives in your area (local community colleges, 4-year public colleges). Organize community to fight against for-profit colleges and promote viable alternatives (e.g. community colleges)
  54. 54. Student Debt Groups • Debt Collective • Corinthian Collective • ITT Tech Warriors • I Am Ai
  55. 55. Vets—“GI Bill Comparison Tool” http://benefits.va.gov/gibill/comparison
  56. 56. “College Navigator” http://nces.ed.gov/collegenavigator/

×