For-Profits Reworking Business Models and Admittance Standards

In an attempt to polish an image tarnished by controversy, for-profit colleges and universities across the nation are amending their business models and enforcing stricter admittance standards for students. The reputation of the for-profit education sector has taken a hit in recent months due to federal probes that uncovered faulty recruiting practices, poor job placement and below average student loan repayment at many of the schools. Now, instead of "courting any student who can pay the tab," for-profit colleges and universities are buckling down, tightening their belts, and hoping that, by revising long-standing, controversial recruiting and admittance practices, new U.S.D.E. regulations won't decimate eligibility for federal funding.

Of the many problems for-profits have been experiencing, lack of adequate career services and low student loan repayment seem to be at the forefront. The allure of many for-profit colleges and universities lies in the career and student services that are offered. For-profit students rely on these services in order to complete a degree and successfully secure employment upon graduation. But, says Jerry Rohde, one for-profit graduate, the services actually offered at many for-profit schools are far less than adequate. And, he says, lack of appropriate services is just one way that for-profit colleges and universities are ultimately failing their students.

Rohde graduated from ITT Technical Institute, a for-profit school with over 100 ground campuses and online degree programs. Rohde tried to utilize the school's career services to find a job and was instead given want ads. And, he says, when he couldn't immediately secure employment post graduation, career services administrators told him to "blame it on the economy." Now, Rohde works for a mortgage company because it's the only way to make payments on the "$40,000 loan I took out to pay my tuition bills."

Although for-profit colleges and universities were quick to fight back when initial U.S.D.E. reports surfaced and new regulations were formulated, the schools are now working with federal officials and school administrators to improve policies so that, experiences like Rohde's, become less and less common. In fact, for profits are now ensuring that measures are taken to effectively retain and successfully graduate qualified students. The University of Phoenix, one of the for-profit sector's largest universities, recently implemented a mandatory orientation program that students are required to take in order to gauge readiness for a higher education curriculum. Many other for-profits schools, both online and ground, are tightening admittance policies and standards. Some for-profit schools will no longer accept student without a high school diploma, others have created programs that help to weed out potentially "unsuccessful students."

Jerry Rohde's lackluster experience with one for profit schools career services, unfortunately, isn't the first. That's why the for-profit sector is working to change the services offered to students and graduates. By focusing on improving student retention and graduation rates, career and student services and job placement and loan repayment rates, the for profit sector will not only be able to preserve federal funding opportunities, they'll also be able to offer their students the quality of education they need and deserve.