In 2010, Congress reauthorized the Post-9/11 GI Bill by changing reimbursement rates from by-state maximums to a nationwide limit. This policy created exogenous variation in financial aid for veterans at private universities. We detect changes in tuition only for for-profit colleges, where we estimate a 1 percent pass-through rate. This response…

The 2020 Democratic Party platform promises a ban on all federal funding for for-profit charter schools, explaining that "education is a public good and should not be saddled with a private profit motive." A look at Academica, a large U.S.-based education service, and their response to the COVID-19 crisis might temper some of that…

For decades, the federal government has expected vocationally focused programs in higher education, especially among for-profit colleges, to lead to gainful employment in a profession. In the mid-2010s, the U.S. Department of Education developed gainful employment (GE) regulations that sought to tie a program's federal financial aid eligibility to…

Each year, the U.S. Department of Education assigns all private nonprofit and for-profit colleges receiving federal financial aid dollars a financial responsibility score, which is designed to reflect an institution's overall financial stability. Yet no scholarly literature has examined financial responsibility scores or whether colleges respond…

Deregulation of for-profit colleges led to a precipitous rise in enrollments from 1990 to 2010. Since 2010, regulation, investigations, and sanctions have led to enrollment declines in for-profit postsecondary institutions. Initially barred from receiving Title IV federal funds, in the form of Pell Grants and Stafford Loans, for-profit colleges…

The student loan crisis has become a buzz topic that presidential candidates frequently discuss in debates and town halls. Today, accumulated student loan debt equals $1.6 trillion, exceeding total accumulated car loans and credit card debt. What makes this a crisis is the fact that approximately 22 percent of student loan borrowers default on…

The fortunes of the for-profit higher education industry rise and fall with the political tides in the United States. During the 8 years of the George W Bush Administration (Republican), the for-profit sector of US higher education prospered. The following two terms of the Obama Administration (Democrat) resulted in the loss of all the ground…

Online learning continues to grow at post-secondary institutions across the United States, but many question its efficacy, especially for students most at-risk for failure. This paper engages that issue. It examines recent research on the success of community college students who take online classes and explores similar comparisons using 656,258…

As the Post-9/11 GI Bill nears its fourth year, with more than 550,000 veterans enrolled in thousands of institutions, advocacy groups, lawmakers, and President Obama warn that veterans are vulnerable in a higher-education marketplace eager for their GI Bill dollars--with some purveyors, particularly for-profits, recruiting aggressively. The…

This study used archival sources to examine the factors that encouraged for-profit business education to shift during the 1970s from small, certificate programs for bookkeepers and secretaries to large, multisite universities for mid-level managers. Using data from the Occupational Outlook Handbook, as well as trend data from the Bureau of Labor…

Although for-profit colleges and universities have had a long history in the United States, they have garnered significant attention only in the last decade. In the early 20th century, career colleges existed primarily in urban areas to provide training for specific trades or professions--plumbing, restaurant management, art and design,…

This study examines the institutional factors associated with student loan default. When a college has more than 30% of its students default on their loans, then the institution faces federal sanctions that could make them ineligible from participating in the federal student loan program. Using Integrated Postsecondary Education Data System…

This article explores the role of Pell grants in the rise of for-profit colleges and universities (FPCUs) in the United States by examining National Center for Education Statistics data (Pell are financial "needs-based" grants to students to offset cost of tuition; Pell grants are the main source of federal financial support available to…

The growth over the last decade of the for-profit sector of higher education (also known as the proprietary sector) has been well documented. In 1999, for-profit colleges and universities enrolled approximately 629,000 students, or a little over 4 percent of the nation's 15.2 million students. By 2009, this sector had increased to 2.2 million…

Amid numerous efforts to increase college-going and completion rates among minority students, for-profit institutions stand out as a leader in that regard. Class flexibility for working and non-traditional students, online courses, and corporate partnerships to reimburse employees are all contributing factors to their appeal. However, along with…