For-Profit Colleges in the US: A Morally Bankrupt Sector?
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ICMR HOME | Case Studies Collection
Case Details:
Case Code : BECG117
Case Length : 19 Pages
Period : 2008-2010
Organization : -
Pub Date : 2011
Teaching Note : Not Available
Countries : US
Industry : Education
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts Contd...
New Regulation
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In July 2009, US President Barack Obama launched a US$12 billion community-college initiative spread over a ten-year period to resurrect the education sector in the US and to ensure that every American had access to quality education. He wanted the US to have the world's highest percentage of college graduates by 2020...
The Debate
Supporters of the for-profit institutions argued that criticisms related to for-profit colleges were aimed at the government gaining more control over the private education system by driving more students away from for-profit schools and into community and state colleges run by the government...
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Looking Ahead
Reacting to the release of the gainful employment rule, the stock prices of leading for-profits like the Apollo Group, Corinthian Colleges, and ITT Education Services, Inc. tumbled. For-profit colleges began encouraging students and teachers to write letters opposing the proposed regulation that could limit federal student aid...
Exhibits
Exhibit I: For-Profit Student Growth (1998-2008)
Exhibit II: For-Profit Share of Pell Grants and Federal Loans
Exhibit III: List of For-profit Schools Probed
Exhibit IV: Program Total Tuition Rates (in US Dollars)
Exhibit V: Examples of Some Deceptive Recruitment and Marketing Practices
Adopted by For-profits
Exhibit VI: Student Debt by Sector and Program Type
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