New student enrollment plunges at For-Profit colleges

[Liberal_in_LA]

Party Ends at For-Profit Schools

For-profit colleges are facing a tough test: getting new students to enroll.

New-student enrollments have plunged—in some cases by more than 45%—in recent months, reflecting two factors: Companies have pulled back on aggressive recruiting practices amid criticism over their high student-loan default rates. And many would-be students are questioning the potential pay-off for degrees that can cost considerably more than what's available at local community colleges.

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The specter of a hefty debt load dissuaded Jason Tomlinson from enrolling to study business at Berkeley College, a for-profit school with locations in New York and New Jersey. Mr. Tomlinson, now 25, said he would have had to pay more than $20,000 per year, for four years, for that school's bachelor's degree program.

On Mr. Tomlinson's $8-per-hour salary as a part-time sales associate at the Gap, "it just didn't seem realistic" he said. "I really did not want to go into that much debt."

Mr. Tomlinson enrolled in LaGuardia Community College, where he pays $3,600 per year for his full-time associate-degree program in business management and works at the school's fitness center to help cover expenses. A barber in his spare time, Mr. Tomlinson plans to open a high-end men's day spa after graduating with his associate's degree in business management this spring.

http://online.wsj.com/article/SB10001424053111904279004576524660236401644.html?mod=googlenews_wsj

[Peregrine Took]

1. Good news! I hate these places. Rip off students who don't know better. n/t

[sfpcjock]

2. Couldn't happen to a nicer group :)

Maybe students saw the Frontline piece called

http://www.pbs.org/wgbh/pages/frontline/collegeinc/"> College Inc.

?

[kick-ass-bob]

3. The quicker these go under, the better it will be for education. n/t

[indurancevile]

4. good. maybe people are getting wise.

[louis-t]

5. Reality bites.

You can't fool people into paying too much for a degree. This totally shoots down the 'theory' that private industry can do it better and cheaper.

[dtexdem]

6. It's still too high:

it's still above zero.

[johnd83]

7. I am a little confused

When did it become legal to open a for-profit college? The vast majority of schools are non-profit organizations. Who accredits these places?

[SteveM]

8. Accreditation? Oh, the Washington Post.

;-)

[physioex]

12. Like the original post explains....

There is an excellent show on PBS called Frontline which did a show on this subject. If you are able, you should watch this show.

[gratuitous]

9. People don't want to overpay for crap?

Well shoot! There goes the whole business model. Is it too soon to start talking bail out for the owners?

[undeterred]

10. I just looked up the cost of Globe University

which does a lot of fancy advertising in my area. $25,000 for 3 quarters. I think they let anyone in. So if you want to buy an education, you can.

[Nay]

11. As it should. Those places are nothing but diploma mills anyway.