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For-profit career colleges, such as the University of Phoenix and Kaplan University, are now getting the ultimate side-eye, especially after the downfall of the Corinthian Colleges. An investigation found that for-profit colleges spend “massively” on “deceptive” marketing campaigns, which is mostly financed by tax-payers, Cleveland.com reported.
With this information, U.S. Sen. Sherrod Brown has had it with for-profit career schools.
“American tax dollars spent on education are meant to support students, not support aggressive, deceptive, and misleading marketing campaigns by certain for-profit education companies,” Brown, an Ohio Democrat, told the Northeast Ohio Media Group.
Cleveland.com says for-profit career colleges get 86 percent of their revenue from U.S. Department of Education loans and grants. Some even reel in profit from the departments of Defense and Veteran Affairs to help educate veterans and military personnel. But nearly a quarter of that money is used for marketing.
“Profit-hungry schools fast-talk students into enrolling, offering federally backed loans and grants and promises of good jobs with high salaries.” Cleveland.com writes.
Failing to live up to their advertised messages, career colleges have high student drop out rates and low employment percentages. And if that’s not enough, graduates are also burdened with expensive debt. The latter is what got Corinthian Colleges in trouble. We reported that the feds will wipe the slate clean for indebted students who attended a Corinthian institution.
“Corinthian […] lied to prospective students, and lied to the government about students’ success in getting jobs,” Cleveland.com says.
Brown is putting his foot down against these schools, saying we cannot allow for-profit colleges to rip off tax-payer money, which should be going to students, veterans, and servicemembers in need.
“When the federal government invests in education, it should support quality education and career readiness, rather than institutions that make empty promises,” Brown said.
Brown is lobbying to hinder for-profit colleges from using taxpayer-funded revenue for advertising. For-profit schools spent 22.7 percent of their budget on marketing. Compare this to the 17.2 percent they shelled out for education. For perspective, non-profit schools spend 0.5 percent of their budgets on ads.
Some, however, are against Brown’s argument, saying that putting a stop sign on marketing would hurt students.
“Fewer students [will be] aware of the opportunities they have to pursue higher education and get a job,” said Noah Black, VP of public affairs for the Association of Private Sector Colleges and Universities.
Who do y0u agree with — Brown or Black?
