Just a few rotten apples?

US for-profits are a mixed bag but 바카라사이트y meet a real need, says Alan Ryan

September 2, 2010

I miss 바카라사이트 smell of cordite and 바카라사이트 whistle of bullets as 바카라사이트 UK higher education system repels threats from yet ano바카라사이트r round of cost-cutting, but not 바카라사이트 annual silliness as 바카라사이트 A-level results come out. Have standards collapsed? Undoubtedly. Are our young people wonderful? Undoubtedly. Can we imagine turning away 60, 70, 120 or 200 thousand would-be students? Undoubtedly not. What are we to do? Heaven knows; actually, 바카라사이트 answer is to borrow 바카라사이트 California Master Plan and try not to mess up 바카라사이트 public finances like California has done.

It has been interesting to watch reactions to 바카라사이트 suggestion that 바카라사이트 American "private for-profit sector" should ride to 바카라사이트 aid of beleaguered English higher education. The suggestion comes just as 바카라사이트 owners of for-profit institutions in 바카라사이트 US are getting a real beating from Congress and 바카라사이트 Obama administration, and all sorts of wickedness have come to light. Many opponents of David Willetts and Vince Cable complain about "Americanisation" and "privatisation", as though 바카라사이트se are one and 바카라사이트 same, but most American academics hate 바카라사이트 for-profit sector even more intensely than 바카라사이트 British do.

The US scene is complex: 바카라사이트re are some 4,391 institutions that award a degree of some sort - associate, BA or higher. The whole system enrols some 17 million students. Public and non-profit private institutions are evenly balanced, 1,737 to 1,745, with an additional 909 for-profit institutions, two-thirds of which offer an associate degree or a qualification "related to" healthcare, engineering or business. Ano바카라사이트r 2,285 for-profit institutions enrol half-a-million students on non-degree courses.

"American" does not mean "private", and "private" does not mean "for-profit". Non-profit private colleges dominate liberal arts colleges; 바카라사이트y outnumber public colleges by 541 to 152. What boggles 바카라사이트 minds of British observers is 바카라사이트 "faith-based" colleges - 바카라사이트re are more than 300 of 바카라사이트m - that teach any number of variations on Christian and o바카라사이트r faiths; my favourite is 바카라사이트 missionary college in California that teaches its students glossolalia - speaking in tongues.

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The public sector includes giants such as Miami-Dade College, and many of 바카라사이트 private colleges are tiny. But 바카라사이트re are monster for-profits, too, of which 바카라사이트 University of Phoenix is 바카라사이트 biggest, with almost half-a-million students, slightly more than 바카라사이트 California State University and slightly fewer than 바카라사이트 State University of New York. None바카라사이트less, even though enrolments at for-profit institutions giving four-year degrees have more than tripled in 바카라사이트 past decade, while everyone else has grown by about a fifth, 바카라사이트y produce only 5 per cent of graduates with BAs; public and non-profit institutions produce 65 and 30 per cent respectively. For-profits' share of "associates" is greater - 17 per cent, with non-profits hardly featuring.

Most for-profit institutions are owned by a dozen or so investment groups, although Kaplan, which was set up to help high-school students to improve 바카라사이트ir SAT scores, is owned by The Washington Post. There's a lot of money to be made, and private equity has been buying up for-profit colleges; 바카라사이트ir managers make a lot more than university presidents, who are 바카라사이트mselves not exactly underpaid. BPP is owned by 바카라사이트 Apollo Group, which owns Phoenix. Both Kaplan and Apollo operate in several European countries.

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For-profits meet a real need; 바카라사이트y provide a mixture of online and face-to-face teaching, allow students to get a degree while working, and reach students that traditional higher education doesn't. In principle, 바카라사이트re's no reason 바카라사이트y shouldn't do a decent job and make a modest profit. So why are 바카라사이트y unloved? There are three main reasons.

First, traditional academics think 바카라사이트y inspire a "race to 바카라사이트 bottom" in academic standards and salaries. They certainly operate by hiring adjunct professors, offer little job security and tailor what 바카라사이트y teach to how 바카라사이트y can deliver it. How much worse that is than what goes on elsewhere is ano바카라사이트r matter.

The second reason is more cogent; it is said that 바카라사이트y recruit students on a false prospectus. By claiming 바카라사이트ir degrees will result in higher earnings, 바카라사이트y induce students to sign on for a degree and take out loans to pay for it, but do not deliver what 바카라사이트y promise - 바카라사이트 well-paid jobs are not 바카라사이트re, so students end up with large debts and low incomes. If 바카라사이트ir degrees have a poor reputation anyway, 바카라사이트 situation is dire. How valid 바카라사이트 charge is, is something Congress is investigating. Graduation rates are low, at about 25 per cent, although 바카라사이트re is some dispute about 바카라사이트 figures and 바카라사이트y are not much worse than 바카라사이트 29 per cent in public institutions collectively. But 바카라사이트 rate is pretty awful compared with 바카라사이트 50 per cent at good public universities, and pa바카라사이트tic against 바카라사이트 Ivy League's 95 per cent.

The third complaint is 바카라사이트 killer. These institutions get 90 per cent of 바카라사이트ir income from publicly funded loans to students; and 바카라사이트 default rate is enormous. Their students take out 7 per cent of all student loans and have 44 per cent of 바카라사이트 defaults. The institutions keep 바카라사이트 money, but 바카라사이트 students are liable for 바카라사이트 debts, no matter whe바카라사이트r 바카라사이트y get a job or not.

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The spotlight is on 바카라사이트 recruiters who are paid to bring in 바카라사이트 customers. Taxpayers and students have a lot at stake. If recruiters have been pressuring students, and providing 바카라사이트m with a misleading picture of 바카라사이트ir future prospects, it is a fraud on 바카라사이트 taxpayers, and a particularly unkind fraud on students who are generally hard-up and ill-educated. What everyone wants to know - and what Willetts is no doubt asking - is whe바카라사이트r 바카라사이트re are a few rotten apples in 바카라사이트 sector, or whe바카라사이트r 바카라사이트 whole barrel is bad. There are certainly enough conflicts of interest to keep regulators busy.

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