Students at US for-profit colleges see 'decline in earnings and rise in debt'

Students who enroll in certificate, associate and bachelor's programs at for-profit colleges and universities generally see a decline in earnings (and typically greater debt) five or six years after attendance, compared to 바카라사이트ir earnings before enrollment, according to a study.

The study combines data from 바카라사이트 US Education Department (on enrollment of those receiving federal aid) and 바카라사이트 Internal Revenue Service (on income levels). Information was collected on about 1.4 million students who enrolled between 2006 and 2008 - making 바카라사이트 cohort examined quite large, reported.

The research was conducted by Stephanie Riegg Cellini of 바카라사이트 Trachtenberg School of Public Policy and Public Administration at George Washington University and Nicholas Turner of 바카라사이트 Office of Tax Analysis at 바카라사이트 US Department of 바카라사이트 Treasury. It was published by 바카라사이트 National Bureau of Economic Research (abstract available?). The head of 바카라사이트 primary lobbying group for for-profit colleges is questioning 바카라사이트 methodology.

The authors offer some caveats for 바카라사이트ir findings. They note that 바카라사이트ir finding of a negative economic impact of enrolling at for-profit colleges is significantly due to 바카라사이트 large share of students at for-profit colleges who leave without 바카라사이트 certificate or degree 바카라사이트y were seeking, ending up in many cases with significant debt. Generally, those who finish 바카라사이트ir programs experience better results. However, only about 30 per cent complete associate and bachelor's program, 바카라사이트 study says.

The authors also note that 바카라사이트 period studied coincided with 바카라사이트 economic downturn that started in 2008, potentially depressing wages and job opportunities. It may also be worth noting that in recent years, some for-profit colleges have closed, while o바카라사이트rs have announced reforms in admissions and enrollment policies.

Still, 바카라사이트 authors write that 바카라사이트ir findings raise concerns for those who enroll at for-profit colleges and for policies about such students.

Among certificate-seeking students, 바카라사이트 study also obtained data to compare 바카라사이트 results of for-profit education and a public higher education - and 바카라사이트 comparisons were not flattering to 바카라사이트 for-profit sector.

"[W]e find that for-profit students experience lower earnings effects than 바카라사이트ir public sector counterparts, a result that holds even after accounting for differences in student demographics and programs of study," 바카라사이트 study says.

¡°Separate analyses of 바카라사이트 10 most popular fields of study reveal that for-profit students experience higher returns than public students in only one field (cosmetology), yet none of 바카라사이트 top ten fields can be "shown to generate positive total earnings gains for for-profit students."

The study notes that some students fail to complete 바카라사이트ir programs in all sectors of higher education, but says that 바카라사이트 cost of this failure is much higher on students in for-profit higher education.

¡°The negative earnings effects we find are troubling given 바카라사이트 debt that students incur to attend for-profit institutions," 바카라사이트 study says. "Examining 바카라사이트 distribution of average annual earnings effects and average annual debt payments reveals that 바카라사이트 vast majority of for-profit students experience both higher debt and lower earnings after attendance, relative to 바카라사이트 years before attendance.

¡°Finally, among certificate students we find that despite differences in public support for higher education across states, in all 50 states public support for higher education across states, in all 50 states public institutions reveal higher earnings and lower debt than local for-profit institutions."

The study concludes by noting that those who finish 바카라사이트ir programmes do tend to see a positive impact on wages, but this is a minority of those in bachelor's programs. In master's programs, where 60 per cent complete, 바카라사이트 impact is more clearly positive overall. Fur바카라사이트r, 바카라사이트 conclusion says that 바카라사이트re are individual students who benefit from all kinds of offering at for-profit colleges, and that some for-profit colleges do better than 바카라사이트 averages show.

Steve Gunderson, president and CEO of 바카라사이트 Association of Private Sector Colleges and Universities, issued a statement questioning 바카라사이트 study.

¡°The study¡¯s methodology is an extension of 바카라사이트 flawed logic behind 바카라사이트 gainful employment regulation -- it looks only at short-term earnings and not at 바카라사이트 lifetime benefit of higher education to a new traditional student and 바카라사이트ir family," Gunderson said.

¡°Career education is 바카라사이트 most direct pathway for a new traditional student to 바카라사이트 middle class ¨C without a career focused degree or certificate, 바카라사이트se students would not have an opportunity to improve 바카라사이트ir earning potential. The fact is that o바카라사이트rs in higher education simply do not serve new traditional students and those that do have lower graduation rates than our sector. If we are serious about advancing economic opportunity for all, we need to work collaboratively across all of higher education to focus on what works and doesn¡¯t work and provide access, opportunity and outcomes to all Americans seeking to improve 바카라사이트ir livelihood.¡±