Representative Tom Sannicandro joined his House colleagues Wednesday in passing a bill that protects students who enroll in for-profit occupational schools by expanding oversight of the industry, which has seen exponential growth in enrollment and profits in the last several years.
Sen. Dick Durbin [D-Ill.] recently proposed a bill that would dramatically change the way federal money can be allocated to for-profit colleges. Currently, for-profits are bound by what’s known as the “90-10 rule,” which says that 10 percent of for-profit college and universities’ revenues must come from sources outside of federal student aid. But G.I. Bill benefits can be counted towards the 10 percent, making them a lucrative source of revenue for the for-profits.
A little-known California law has dealt a blow to nearly half of the for-profit college campuses in the state, barring them from offering students a coveted Cal Grant this year.
It hasn’t gotten much attention on the campaign trail, but President Obama and Republican front-runner Mitt Romney are sharply divided over one of the most controversial issues in higher education today — the growth of for-profit colleges.
For-profit colleges and universities represent the fastest-growing but also most controversial sector of private higher education in the United States. Universities like Phoenix, DeVry and Kaplan have helped turn the for-profit sector into a massive revenue generator and the engine for higher education growth. From 1998 to 2008, for-profit enrolment grew by 225%.
A decade after Monash University in Melbourne became the first foreign university to gain registration as a private higher education institution in South Africa, its ambitious goal of establishing a profitable campus in Johannesburg has still to be achieved. Meanwhile the university has changed its approach, switching focus from being 'for-profit' to 'public purpose'.
Last year, the Obama administration vowed to stop for-profit colleges from luring students with false promises. In an opening volley that shook the $30 billion industry, officials proposed new restrictions to cut off the huge flow of federal aid to unfit programs.
The only for-profit institution in Britain authorized to offer higher-education degrees is in talks with several public universities about managing the business side of their operations, according to the Guardian. The company, BPP, “has launched an aggressive expansion plan to jointly run at least 10 of its publicly funded counterparts,” the paper reports.
Kaplan, the for-profit higher education provider, is to offer tuition for external University of London degrees in a direct echo of a model for widening participation suggested by universities and science minister David Willetts.