Subprime Opportunity: The Unfulfilled Promise of For-Profit Colleges and Universities - The Education Trust feels with the collapse of the subprime lending industry, the showdown between for-profit colleges and the government shows how the aspirations of the underserved, when combined with lax regulation, make the rich, richer and the poor, poorer. For-profit colleges provide high-cost degree programs that have little change of leading to high-paying careers, and leave the most vulnerable students with heavy debt. Instead of providing a solid pathway to the middle class, they pave a path into the sub-basement of the American economy. (The Education Trust, November 2010)...

Just How Similar? Community Colleges and the For-Profit Sector - This brief illustrates that, while they may offer some of the same educational programs, their missions vary significantly and they serve different populations, resulting in different outcomes. Community colleges work to respond to educational, workforce and community needs. For-profit institutions are often looking toward the bottom line, with accountability to shareholders instead of students. This brief's findings show that apples-to-apples comparisons between the public and for- profit postsecondary institutions are not only limiting, but also can lead to distortions of performance. (Christopher Mullin, American Association of Community Colleges, November 2010)...

For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud and Engaged in Deceptive and Questionable Marketing Practices - Testimony before the Senate Committee on Health, Education, Labor and Pensions. In 2009, students at for-profit colleges received more than $4 billion in Pell Grants and more than $20 billion in federal loans. GAO was asked to: (1) conduct undercover testing to determine if for-profit colleges' representatives engaged in fraudulent, deceptive or otherwise questionable marketing practices; and (2) compare the tuitions of the for-profit colleges tested with those of other colleges in the same geographic region. Among other findings, undercover tests at 15 for-profit colleges found that 4 colleges encouraged fraudulent practices and all 15 made deceptive or otherwise questionable statements. (Gregory Kutz, U.S. Government Accountability Office, August 2010)...