For Profit Colleges Enrollments Down

This week we look at the three top stories in higher education – Dan Rather on For-Profit Colleges, Enrollments Down, & AG Madigan Calls for Tougher Regulations

Dan Rather Report: For Colleges

This week’s episode of the Dan Rather Report was an in-depth investigation into the world of for-profit colleges including ITT, DeVry and University of Phoenix. Rather explores how the for-profit industry makes money and the students that attend these schools. You can purchase the episode on iTunes here.

For-Profit Enrollments Down 8.7% Spring 2013

Forbes reported this week that the latest enrollment figures from for-profit colleges suggest that the negative publicity and tighter government regulations has done deep and long lasting damage to the industry. Forecasts for the five biggest publicly-traded schools now call for revenue declines to continue at least through fiscal 2014. Share prices are down between 32% and 86% in the past two years, turning some once-heady investments into major losers.

The latest report published May 16 by the National Student Clearinghouse Research Center showed Spring 2013 enrollment in for-profit colleges, both publicly-traded and private, down 8.7% from a year earlier.

Illinois AG Madigan Calls for Tougher Regulations on For-Profits

Attorney General Lisa Madigan urged U.S. Secretary of Education Arne Duncan on Tuesday to strengthen oversight of for-profit colleges and filed comments with the Department of Education in support of requiring schools to ensure students can pay off their loans and to make more accurate and complete disclosures about their job placement rates.

“Too often, with promises of higher-paying salaries and better job prospects, young people in Illinois and across the country have been lured into taking on huge amounts of debt to pursue diplomas at for-profit schools,” Madigan said. “Yet, over and over again, many of these institutions’ promises have proven empty, and young people have paid the price, going deeply into debt to pursue diplomas that leave them without better job prospects or higher salaries.”

A copy of the letter Madigan sent Duncan can be found here.