So says associate professor Kevin Kinser at the State University of New York-Albany. For-profit schools have been getting a bad rap for the last few years because of some questionable recruitment practices, but they educate about 10% of all graduates and are an important part of the educational network.
The real problem with them the professor says is that too few of their students pay back their government loans. While about 90% of for-profit undergraduates use federal loans to pay tuition … they accumulate too much debt, can’t pay it back, and leave the government with overdue loans.
There’s a long history of success with the education for-profits provide. Compared with non profit learning institutions they enroll more students, outperform state colleges on graduating minorities, and are more accessible to older students. They award about 1 in 5 associate degrees and 1 in 10 master’s degrees.
The sector is expected to add 1 million more new students next year. 1 in 3 will pay off the principal on their loans in the next 4 years and 1 in 5 for-profit students will default in the next 3 years.