WASHINGTON – A Senate investigation of 30 for-profit college companies, including four based in Arizona, accused the schools of focusing on profits over student services, of wasting taxpayer dollars and posting high dropout rates.
The two-year investigation by the Senate Health, Education, Labor and Pensions Committee found a range of problems that run “deep within the for-profit sector,” which received $32 billion through federal student aid in the 2009-10 academic year.
It said the government gets little return on that investment, with most students at for-profit institutions failing to graduate.
“These practices are not the exception, they are the norm,” said Sen. Tom Harkin, D-Iowa, who issued the report Monday. “They are systemic throughout the industry with very few individual exceptions.”
But a minority report by Republican staffers on the committee said that while it is “indisputable that significant problems exist” at some for-profit institutions, Democrats “did not seek bipartisan input or support” for the investigation. The majority’s “biased conduct” throughout the probe raises doubts about the accuracy of the report, they said.
The 1,000-page report said the for-profit college model appeals to non-traditional students and has grown in popularity, with enrollment rising 225 percent between 1998 and 2008 to account for 10 to 13 percent of all college students.
But the report said that more than half the students enrolled in a for-profit program in 2008-09 left without a degree or diploma. The 30 companies studied had nearly 1.1 million Americans enrolled between 2008 and 2009, but more than half had withdrawn by mid-2010, it said.
“They are left with student loan debt but without the benefits of a college degree or certificate,” the report said.
Companies from Arizona that were studied were Anthem Education Group, Apollo Group Inc., Grand Canyon Education Inc. and Universal Technical Institute Inc.
They were blasted for high withdrawal rates, high loan-default rates, a low number of career-services employees, a high percentage of spending on marketing compared to instruction, and “troubling” recruitment tactics, among other problems.
The findings were not all negative though.
The results from Universal Technical Institute, which offers vocational programs, suggest that students are finishing the program and finding jobs, even though it had high tuition rates.
And Harkin cited Apollo, which operates the University of Phoenix and other schools, as a company taking “positive steps in the right direction.”
While the report cited problems with Apollo – such as high dropout rates and putting financial success over student success – it said the company has addressed some concerns with recruiting and marketing practices and career services. It has also instituted a university orientation program.
But “more remains to be done,” the report said.
Mark Brenner, Apollo’s senior vice president of external affairs, said the report failed to capture the “truth about University of Phoenix and our students.”
“The biggest shortcoming from this review … is that it fails to recognize the intrinsic value of our institution: a value that is not only helping students complete degree programs today, but that is pointing towards a brighter future for American higher education,” Brenner said Monday in a prepared statement.
Calls to Grand Canyon and Anthem were not immediately returned Monday.
Harkin said he hopes colleges will be “moved by this investigation and final report to initiate reforms.”
The report suggests three major changes: Enhance transparency by collecting relevant and accurate student outcome information, strengthen federal financial aid oversight and create meaningful protection for students.
Harkin was not hopeful there would be any legislative action on the issue this year, but expects it could come next year when the Higher Education Act is up for renewal.
“What’s important here is we’re setting the stage for some very severe questions to be asked,” he said.
evanecurb posted at 9:32 pm on Wed, Aug 1, 2012.
First off, let me say disclose that I am an online doctoral student at Northcentral University in Prescott, and I am an instructor of undergraduate courses at University of Phoenix. Having said that, I would like to point out some of the shortcomings of the Harkin report:
1. The student loan program is not a taxpayer expense. It operates at a profit. The government charges students more in interest than it costs the taxpayers to fund and collect the loans.
2. Most for-profit colleges are aimed at adult learners who are working full time. The online programs are especially convenient. In my case, I have been able to pursue a PhD without giving up my full time job or even cutting back on my hours.
3. The report does not mention a comparison of the dropout rate at for-profit schools vs. other schools. That's an important piece of information.
4. In the classes that I instruct, the only students who have received a grade below a C are those who failed to turn in major assignments, such as term papers. Students who turn in all assignments always pass my courses and learn a lot from each other in the process.
5. I think the high attrition rate is due to the students' attitudes and not to the schools themselves: our students have full time jobs, children, and often decide that the added burden of attending school is too much for them. It's a shame, but it's true. What the report fails to mention is that a lot of them come back to school.
DrJCA1 posted at 1:20 pm on Tue, Jul 31, 2012.
More government trash from the trash in Washington. There are many tradtitional universities, public and private, that have terrible dropout rates. The problem is that since political correctness has taken over everything in the US, these schools must accept students that have no business in college. There are "quotas" for minorities, so these inner city kids get free money from uncle sam, register for college, and then blow it off and drop out. The rates for the University of Cincinnati is high because of just that fact. Many other big city schools are in the exact same boat.
chatmandu002 posted at 11:11 am on Tue, Jul 31, 2012.
This is what happens when the public coffers are open to everyone. Everyone takes advantage and the taxpayer gets shafted. Get the federal government out of the education business. After 40+ years the federal government has proven it can't teach our children. Eliminate the Department of Education and stop all student loans except for veterans. Return authority for education to the states and local boards.
hillstreet posted at 10:44 am on Tue, Jul 31, 2012.
I wait for the report on public universities, their graduation rates, failures, emphasis on making a buck and corrupt athletic programs (Penn State). I am sure it will be coming soon....