For Profit Colleges, Time to Change
With tougher government regulations, negative opinions and a poor economy major for – profit colleges are taking a hit. Amongst the hardest hit are the University of Phoenix and Kaplan, which have done so somewhat voluntarily. Both of these institutions have made it easier to drop their classes if they are unprepared for the program, without taking on the associated debt. This also works the other way. Students who are not preforming up to the standards can be asked to leave.
Kaplan has launched a 5-week free trial period called Kaplan Commitment. During this time students are enrolled in credit classes as usual. At the end of the trial period the student decides whether or not the program is right for them. If they choose to end their studies they are not financially obligated to the institution.
The University of Phoenix has taken on a similar initiative. Their program entails a 3-week free orientation for new students. This began as a pilot and now serves a large number of students. Both of these institutions hope to raise their retention rates and have become more selective in the admissions process.
For profit colleges in general seem to be tweaking their target population. Historically these colleges have been seeking lesser prepared students. Through this process they have learned that this population is more risky and the payoff does not maximize potential. Some for profit colleges, including Kaplan and University of Phoenix are now looking to enroll longer-term students. This new approach hopes to change the significant drop in enrollment seen over the past few years. The government has played an active role in deterring institutions from targeting underprepared students. There are now stricter rules for compensating student recruiters.
With the economic recession students are less inclined to pay the big bucks to attend for profit colleges. These students are also more likely to drop out due to financial reasons. As a result, lower cost for profit colleges are reaping the benefits.
For profit colleges have been criticized in the media recently. The efforts to change people’s perceptions does not come without cost. The Kaplan Commitment initiative has been part of the reason student drop out. During the trial period 25% of student decide to no longer take classes. In many cases this is advised by Kaplan. Kaplan lost 27 million dollars as a result of their trial period. For the University of Phoenix enrollment is down by 19%.
I applaud the efforts of these two institutions for recognizing the fact that their practices were not always in the best interest of the students. They have taken a big hit financially. Hopefully their dedication to change will alter the negative perceptions associated with for profit colleges and encourage others to follow suit.
Well, in some ways I am glad For-profit colleges are losing business. I have heard that for-profits are in the higher education business to make money off naïve people and don’t care about providing a holistic education. But then, there are stories of individuals who attend for-profits and enhance their skills or acquire certification, which boosts their marketability. That is great! I am all for anyone who desires to better themselves. It’s about time the government has stepped in and regulated the for-profit institutions. There are some people out there who understand how the higher education system works, but for most they do not. And it is these people who get built up by the aggressive for-profit recruiters and get sucked dry of their aid and yet, have no guidance to obtain a job. The for-profits also receive money from corporations to mass-produce workers they’re looking for. Which is not a bad thing, however, it is as if knowledge is now being commodified and sold. Higher education is supposed to be producing knowledgeable humans not machines.
ReplyDeleteI commend Kaplan’s five-week commitment plan. What a great program to enable individuals to try-out courses. It is life-changing event when one enrolls into an institution. And for some, college is not for them, so this is a great way for them to find out without having to pay back a bunch of loans.
I think as for-profits exist, they should change their names to vocational or technical institutions because so much of a liberal education is left out of their curriculum and many of their graduates receive a one-sided education. Perhaps the for-profits decline is a sign of things to come.