For-Profit Colleges: A “Business Model” That Blew Up

Career Education, when it reported its quarterly results, shed light on an industry that had ruthlessly taken advantage of the American way of funding higher education, and that had preyed on gullible prospective students who were trying to better their lives. Then it handed the tab to the taxpayer. A perfect scam. Now the industry is in a vise between government crack-downs and reluctant students.

Read…. For-Profit Colleges: A “Business Model” That Blew Up

5 comments on “For-Profit Colleges: A “Business Model” That Blew Up
  1. williambanzai7 says:

    Another fine scam enabled by Goldman Sachs.

  2. Nak says:

    Out of work Java programmers are told to take up a trade like bricklaying and out of work Bricklayers are told to take up Java programming.

  3. Bruce says:

    Haven’t colleges always been for-profit? That’s been my impression all along anyway.

    Fabricating job placement data. Oh yes, that’s desperate!

    “In its dazzling manner, the for-profit post-secondary education boom left behind a long trail of wrecked dreams, unfinished or worthless degrees, wasted time, and a huge pile of student loans resting on the shoulders of people who were unable to find jobs in the fields they’d studied and who are now unable to pay back these loans. In the process, these outfits sucked up taxpayer-funded state and federal financial aid of all types and made early investors and executives rich. At their peaks, the stocks were picked up by mutual funds and were thus sneakily stuffed into well-diversified portfolios and 401k’s, as recommended by all of Wall Street. Because somebody has got to buy this stuff on the way down.”
    ~~~~~~~~~~~~~~~
    Tragic. Most of the theft these days clearly occurs without someone breaking into your home.

  4. jischinger says:

    The first time I heard of For Profit education on the k-12 level was the Edison schools.

    Knowing what I know about education, heck, anyone who went to school in the US, should have thought, what were they thinking…

    Some things should not be for profit – education is one.

    On the college level, unless the school was connected to an industry where the employer was willing to pay or split the costs these places struck me as nothing more than matchbook advertisement.

    and while we’re on the topic of education – AmeriCorps is a huge scam – don’t join it and don’t allow your kid to go through it; this includes all their little local feel good affiliated programs. It’s nothing short of slave labor and union busting, an organization where the administration makes huge salaries and receives giant speaking fees for trapping people in poverty in order to keep them in poverty.

    If you’re after higher education, pick a school that is either connected to the state, or has been around for more than 50 years without financial scandal.

    If it’s a school with a particular philosophy then believe in that philosophy first.

    If you are after a certain kind of license then check with your state offices to find out if they are an approved institution that meets the requirements for the license you seek, and ask them to send you the list of approved courses and institutions, shop around. Then find out how saturated the job market is in the area you seek.

    If you don’t know what to do hit one of the city or state junior colleges, take only the basic courses that will transfer to a four year school and satisfies the general education requirements.

    Finally, if you just want to get on the college track and you think you know your stuff in the required areas of a general education; history, humanities, science, math, English, etc… take the CLEP. For basic college subjects you can test out of two course for less than $200, and if you’re a US Vet the test is free. Just remember that most colleges and universities won’t accept more than two CLEP tests – they’d go broke if they did.

  5. Aaron says:

    Nothing wrong with for-profit. It’s the market manipulation that causes the problem. When government guarentees the loans, the prices will inevitably go through the roof.

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