Students who seek degrees at for-profit colleges are more likely to enroll without shopping price and course offerings at other for-profit and non-profit institutions. That's one of the principal findings of a new study by Public Agenda, a non-profit group that studies complex and divisive issues.
The survey found that only four in ten undergraduate students at for-profit colleges said they seriously considered other schools before enrolling at their current institutions. An intriguing question, which the survey does not specifically address, is why.
The survey does, however, reveal that a large number of students at for-profit schools don't really understand what a for-profit school is, or how it is different from a public, non-profit school. The pollsters found most are unsure whether their schools are for-profit or not.
Advertising is effective
When you ask students what led them to consider a particular for-profit school, you learn – especially from the adult students – that they are more likely than others to say they learned about colleges from advertisements. State-supported non-profit colleges rarely advertise while for-profits advertise a lot.
The Consumer Financial Protection Bureau (CFPB) has taken a keen interest in the marketing of for-profit schools, whose tuitions are much higher than most non-profits but whose students often take on loans and seek government grants to pay for their education.
In a New York Times op-ed in 2011, CFPB's Holly Petraeus accused some non-profit schools of focusing on members of the armed services and veterans with “aggressive and misleading marketing,” then failing to provide the academic support that was promised.
“Vast sums are involved.” she wrote. “Between 2006 and 2010, the money received in military education benefits by just 20 for-profit companies soared to an estimated $521.2 million from $66.6 million.
Alumni not dissatisfied
The Public Agenda survey shows students and graduates from for-profit schools are not completely dissatisfied. Their main complaint is the high cost of their education and their sizable student loan balance.
What they like about their for-profit schools – particularly adult students who have jobs – is that these schools tend to offer online classes, accelerated degrees, personal guidance from career counselors, financial aid advisers and tutors, and credit for practical, work-related experience.
Carolin Hagelskamp, director of research at Public Agenda and lead author of the report, says for-profit school graduates who have jobs are much more likely than unemployed alumni to say the experience was worth it.
"It is certainly the case in this study that many graduates from for-profit schools put some blame on their schools for not adequately preparing them for the job market," she said.
What employers think
Another important question is how employers view applicants with degrees from for-profit schools. According to the survey, about half the surveyed employers don't perceive any difference between a degree from a for-profit school and one from a state university.
However, the other half who do see a big difference. Among this group those who see a difference view public schools as superior on a number of counts. In focus groups conducted along with the survey research, employers tended to favor traditional institutions, with many saying that they'd prefer to hire a candidate from a reputable state school versus a for-profit college.
For-profit schools have their supporters. They point out that these schools have been a source of innovation in higher education, being an early leader in the expansion of online education. The for-profit sector has also increased access to higher education for older students with substantial family responsibilities.
Non-profits catching up
The fact is, non-profit schools are quickly catching up, as evidenced by the recent emergence of Southern New Hampshire University – a private, non-profit university – becoming a leader in online education and advertising heavily.
For the survey's authors, the question gets back to why students aren't considering a wider range of schools?
“More needs to be done to help future students understand the value of comparing different schools,” the authors write. “Prospective students want and need better opportunities, online and in person, to engage with and evaluate quality indicators and other information about colleges and programs, including information on how different schools are governed and funded.”
Students who seek degrees at for-profit colleges are more likely to enroll without shopping price and course offerings at other for-profit and non-profit i...