What people should know before they choose a college.

1. The Dangers of For-Profit Colleges
Dahn Shaulis, Ph.D.
Camden County College

2. What For-Profits Offer
1. convenience
2. 2nd chance
3. “training” rather than
education
4. the promise of a real
world vocation…

3. How many students are enrolled in
4profit colleges?
1.3-2.1 million enrolled
National Center for Education Statistics, 2012
National Student Clearinghouse, 2014
Many unaware the school is “for-profit”

4. The Problem of For-Profits
1. Some have low graduation rates
2. Some have limited student services
3. Credits unlikely to transfer
4. High tuition (3-4 X community colleges)
5. Huge debts
6. High risk of default (average is 19%)
7. For some, a lifetime of “debt peonage”

5. “4Profit” Colleges in Our Area
Public held stock corporations
Privately held corporations
Anthem College (closed)
Omega Institute (closed)
Harris College
Lincoln Tech
ITT Tech
Strayer
Devry
University of Phoenix
Online Colleges

6. They Sound Like Good Colleges…
Virginia College
Florida Tech
Colorado Tech
California Southern University
Northcentral University
The Art Institutes

7. Appearances can be deceiving…

8. A Danger to Whom?
• Targeted Students
• Families
• Community colleges
• State colleges
• HBCUs
• Communities
• Governments
• Tax payers

9. Targeted Students
• Veterans
• Single moms
• People of color
• Immigrants
• People w/ disabilities
• The underemployed
• “Socially isolated” people
• Dropouts
• Community College Students

10. Student Loan Defaults
(US Department of Education)
4profit colleges have:
13% of the students….but
47% of all college loan defaults

11. Average Student Loan Debt*
Public university student $25,550
Private university student $32,300
For-profit school student $39,950
*The Institute for College Access and Success (2012)

12. Suzanne Mettler (Cornell)

13. David Halperin (Huffington Post)
Attorney David Halperin has
discussed deceptive recruiting
practices in detail

14. Aaron Glantz (PBS-CIR)
Aaron Glantz (Center for
Investigative Reporting) has
uncovered predatory
practices at University of
Phoenix

15. 4Profit Money
• 80-90% of funds from
federal government
• Title IV Funds
• Veterans benefits
• Workforce Investment
Board (Retraining)
• Billions towards
advertising, marketing,
lobbying

16. How 4Profit Education Works
1. $30 Billion from Government
2. Billions on advertising
3. High-pressure sales
4. Aggressive debt collections

17. Students recruited from “passion
impulses, not real world demand”
Quote from Mike
DiaGiacomo, former for-
profit student

18. Billions in Advertising + Marketing

19. Billions in Advertising
(Targeting White Working Class)

20. Strayer Targets People of Color

21. Slick University of Phoenix Ads
(see Video)

22. Adverting False or Misleading Claims

23. Misleading Ads
Some sound like more
legitimate schools

24. Predatory “Lead Generators”
Consumers are led to
recruiters through
misleading ads

25. Lead Generators (Classes USA)

26. Lead Generator

27. Lead Generator

28. For-Profit College Lead Generator*
*David Halperin 12-13-2014

29. “Websites Promising Jobs and Medicaid Are
Instead Bait for For-Profit College
Telemarketers”

30. Telephone Tactics (Career Education)*
“NOT GIVE TOO MUCH INFORMATION”
“create a sense of urgency”
*Eric Owens (Daily Caller) 11-7-2014

31. Aggressive Recruitment

32. Targeting Veterans
University of Phoenix
Art Institutes
Lincoln Tech
Argosy University

33. “‘Degree Mills’ Are Exploiting Veterans and Making
Millions Off the GI Bill” (Aaron Glantz)

34. Predatory Facebook Ads

35. “For-profit colleges get harsh grades by former
students” (Boston Globe)

36. “My degree is worthless”
(CNN Money)
Rosalyn Harris, Everest
graduate in criminal justice
"My sole purpose of going to
school was bettering my life
for me and my son," she
said. "But now I wish I had
never gone."

37. "They've ruined my life and the lives of
many of my classmates“ (CNN Money)
• Ventrell Echols
• Lincoln Tech student in
computer technology
• $20,000 in debt, now
homeless

38. College Inc. (PBS 2010) see Trailer

40. For-Profit Colleges Skewered in
Popular Culture (2012)

41. For-Profits in Popular Culture

42. Mother Jones (2014)
“Screw U: How For-Profit
Colleges Rip You Off”

43. Esquire (September 2014)
“How For-Profit Colleges
Are Tainting American
Education”

44. Jon Oliver Rips On For-Profit Colleges
(2014)

45. University of Phoenix (Redacted 2014)

46. Investigations (see video)
• 2010 Government
Accountability Office
• 2012 Harkin Commission (US
Senate)
• 32 States Attorneys General
• California Attorney General
(2013-14)
• Center for Investigative
Reporting (2014)
• Federal Criminal
Investigations of Corinthian
Colleges (2014)

47. Legislative Action to Regulate 4Profit
Colleges*
• Connecticut
• Maryland
• California
• Michigan
*National Conference of State Legislatures
http://www.ncsl.org/research/education/for-profit-
colleges-and-universities.aspx

48. Consumer Lawsuits
Mississippi Center for Justice
Grads Sue Virginia College

49. Efforts to Regulate 4Profit Schools
Hindered
1. “Gainful Employment” regulations to improve
transparency, accountability
2. Court rules in favor of For-Profit colleges
3. New round of regulations. No sanctions until
2017.
4. At each step, 4-profit colleges resisted regs

50. “Doublespeak” Laws
‘‘Supporting Academic
Freedom through
Regulatory Relief Act’’
(2015)
Attempts to reduce oversight

51. What can we do to resist 4profit colleges?
• Education (e.g. community groups, high school
counselors)
• Peer education (e.g. Phi Theta Kappa, Black Student
Union)
• Counter-recruiting
• “Culture jamming”
• Remove 4profit recruiters from campus
• Scrutinize teacher credentials
• Notify state AGs
• Call for criminal investigations
• Call for State “Gainful Employment” Legislation

52. The 4profit Zombie College Crash
• Corinthian Colleges
• Art Institutes
• Local Trade Schools

53. “Opportunity Costs”
Less 4profit colleges means
that more working students,
and their families
can get on the right path, to
community college… and
beyond…

54. What can I do first?
Educate yourself and others about the “Dangers of
4profit Colleges”
Learn about viable alternatives in your area (local
community colleges, 4-year public colleges).
Organize community to fight against for-profit
colleges and promote viable alternatives (e.g.
community colleges)

55. Student Debt Groups
• Debt Collective
• Corinthian Collective
• ITT Tech Warriors
• I Am Ai

56. Vets—“GI Bill Comparison Tool”
http://benefits.va.gov/gibill/comparison

57. “College Navigator”
http://nces.ed.gov/collegenavigator/