For-Profit Colleges, Vulnerable GI’S.

1. By Hollister K. Petraeus

            Article in the New York Times

            Published September 21, 2011

            3 pages long

2. Most of the money made by for-profit schools is through Pell Grants and subsidized student loans. pg 53

• “University of Phoenix will make $1 billion from Pell Grants and $4 billion in federal loans” pg 53

3. “Between 2006 and 2010, the money received in military education benefits by just 20 for-profit companies soared to an estimated $521.2 million from $66.6 million,” stated by Perteaus.

4. Just as the for-profit sector targets students turned down by other colleges they also seek those who are coming out of the military looking for a secondary education. This extends Carey’s argument that for-profits are making most of their money from the students they enroll.

For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud and Engaged in Deceptive and Questionable Marketing Practices

1. By Gregory D. Kutz

           Testimony reissued by GAO

            Released on August 4, 2010

           18 pages long

2. A large and growing number of graduates from for-profit colleges are having trouble paying off those loans. pg 53

-“The Obama administration has proposed cutting off federal aid to for-profits that saddle    students with unmanageable debt” pg 53

3. ”Our covert testing at 15 for-profit colleges found that four colleges encouraged fraudulent practices, such as encouraging students to submit false information about their financial status. In addition all 15 colleges made some type of deceptive or otherwise questionable statement to undercover applicants, such as misrepresenting the applicants likely salary after graduation and not providing clear information about the colleges graduation rate,” stated by Kutz. pg7
4. This source extends Carey’s idea that a growing number of students at for-profits are unable to pay off their student loans. This testimony shows that for-profit schools will reel in students to their schools and tell them false facts about their financial status. In doing so students will take out loans and some may not ever be able to pay them off.

Why Do You Think They’re Called For-Profit Colleges?

1. By Kevin Carey

Article in The Chronicle of Higher Education

Published on July 25, 2010

3 pages long