Why You Shouldn’t Apply to For-Profit Colleges
It’s a bad idea and you should steer far away
As of June 2, 2021, the Education Department no longer recognizes the Accrediting Council for Independent Colleges and Schools, an organization that previously accredited for-profit colleges. This marks the second time ACICS has lost the recognition to accredit institutions of higher learning. The first time the council had their recognition pulled was for accrediting the for-profit colleges, ITT Technical Institutes and Corinthian Colleges — both of which have been linked to fraudulent activities involving student loans and misleading marketing practices.
So what are for-profit colleges and why are they bad?
A for-profit college is an “institute of higher learning” that is owned by one or several private businesses with the intention of making a profit. Unlike nonprofit colleges, whose funding comes from the State or through tuition, endowments, or donations, for-profit schools are run by shareholders who are trying to take your money.
Not all for-profits are scams, but here are three reasons why they’re not the best investments.
They’re Expensive
This one is a no-brainer. You might argue that all schools are expensive. Yes, but why spend money on an institution whose literal goal is to make money? Think of for-profit colleges being run like businesses. What are the goals of business owners? Exactly. Nonprofits, on the other hand, have a goal of providing a quality education for their students.
In addition, on average, nonprofits are more affordable. The average cost for a public, four-year, nonprofit university for in-state students is $352 per credit. At a for-profit college, the same credits earned cost $647 on average. You’d be better off attending community college and transferring to a four-year university. At least then, you’d be saving money.
Many students borrow from lenders affiliated with the school, making it difficult to pay off loans. With an agenda to make money, students become stuck in high-interest loans at a school whose tuition is 10% more than what financial aid allocated.
Meaningless Degrees
If you’re in thousands of dollars in debt, you’d think you’re getting what you’re paying for, right? Not exactly. According to the Department of Education, only a meager 22% of students at for-profit colleges earned some type of degree in California. The numbers are even lower for students of color.
Compare that number to 65% of students who graduate with a four-year degree at a private non-profit college. Even students at community colleges fare better, with 35%-41% earning a certificate, transferred to a four-year college, or simply graduated.
Say you’re one of the students who did pay thousands of dollars and one of the few who stuck it out and graduated from a for-profit college. How much is your degree worth?
Not a whole lot, according to a study by David Deming, economist and professor at the Harvard Graduate School of Education. Deming conducted a study where fake resumes were created and submitted to real job postings. The resumes listed post-secondary credentials from for-profit colleges and nonprofit colleges. For business jobs, the study found that online for-profit schools were less likely to receive a callback by 22%.
This shows that employers don’t look very highly upon for-profits. It’s already difficult to find jobs in today’s market and you definitely don’t need a degree that is working against you.
Substandard Education
With promises of flexible schedules, programs, and degrees, for-profit schools seem like great investments for non-traditional students. However, what happens when the school suddenly shuts down, leaving students with thousands of dollars in debt? After all, for-profits exist to make money. Just like businesses, these institutions can declare bankruptcy. 95.5% of colleges closed in 2013 were for-profit.
Sure, there is student loan forgiveness, but students are not only left with crippling debt, but also non-transferable credits, and partial education with little to no academic value.
For-profit colleges do not provide the same quality education as non-profit, private, or public, largely because these schools spend more money on promotion rather than instruction. The faculty at for-profits work under contracts, their salaries are generally lower than their full-time counterparts at non-profits.
In addition, for-profits often have misleading marketing practices, promising adequate career training and preparation when schools are missing the mark of the “gainful employment” rule, resulting in graduates not being ready or qualified for a job in their chosen field.
Bottom Line
For-profits are simply not worth it. Don’t make the mistake of thinking these institutes are great investments. Investing in oneself is about confidence and taking a chance based on accomplishments, not taking the easy way out, and learning you’re not getting what you paid for.
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