For-profit college students don’t do as well as similar students at public and private nonprofit colleges, according to a draft research paper (pdf) by Harvard economists. From Inside Higher Ed:
“For-profits disproportionately attract minority, older, independent and disadvantaged students,” according to the study, which assessed student outcomes after factoring in observable differences in populations who have attended different types of colleges.
. . . The research found that for-profits have some competitive strengths, such as in first-year student retention rates compared to community colleges. But the adjusted data showed for-profits lagging behind other types of colleges in areas such as employment outcomes, student satisfaction with academic offerings, debt levels and loan default rates — gaps that probably cannot be fully explained, the researchers say, by the greater propensity of students at the colleges to have prior risk factors.
Researchers compared first-time undergraduates, but did not analyze older, returning students.
The vast majority of students at for-profit colleges expressed satisfaction with their courses of study and academic programs. But the study found that they report “significantly lower satisfaction than observably similar students” at other institutions.
Not surprisingly, for-profit students, who pay unsubsidized tuition, are less likely to say their education was worth the cost or that their student loans were a good investment.
Given the constraints of the data, the study is a “conversation starter” rather than the last word, said David Deming, one of the authors.
For-profits have strong business models that often allow for a quicker response to changing labor markets than their nonprofit competitors, according to the study’s authors. For example, the sector currently produces 51 percent of associate degrees in computer and information services. And for-profit offerings in health and medical fields, where demand is high, are growing faster than at nonprofits.
. . . “Regulating for-profit colleges is tricky business,” said the study. “The challenge is to rein in the agile predators while not stifling the innovation of these nimble critters.”
