Written by: Zeeshan Aleem
Published: 11/04/2009

For-Profit Colleges Grow Despite Cost

In the state of New York, the number of students at for-profit colleges in the last decade has jumped 61 percent, reports the New York Times.

Experts predict that for-profits will continue to grow, especially in light of their appeal to low-income and older students – who have given up on traditional publics and privates – experiencing the brunt of the recession, and the White House's encouragement to Americans to pursue college credentials. For-profits operate year-round, are attuned to fields hungry for workers, and "promise more career-guidance than do cash-strapped community colleges," according to The New York Times.

Nearly 25 percent of federal Pell grant funds go to for-profits, according to a new analysis by the research firm Student Lending Analytics.

As appealing as they are for low-income-income students, for-profit colleges are generally more expensive than public institutions. For example, tuition at Monroe College costs $11,744 for two semesters, versus $3,150 for a City University of New York community college and about $5,000 in a SUNY baccalaureate program. More graduates of for-profit schools default on their loans: 11 percent within the first two years, compared with 5 percent of nonprofit graduates.

Experts advise prospective students of for-profit colleges to look beyond cost and carefully consider a number of criteria, including: job placement (the calculation of which should be scrutinized), the quality of the students (sometimes indicated by the ease with which one substitutes "life experience" for a high school degree), the ability to transfer credits, and signs of graduates' professional advancement, such as rates of success on licensing exams and robust alumni associations.

Related Links:

New York Times
http://www.nytimes.com/2009/11/01/education/edlife/01forprofit-t.html?scp=1&sq=SAMANTHA%20STAINBURN&st=cse