College Inc.

I happened across a streaming Netflix documentary from Frontline last night. College Inc. examined the rise of “for profit” higher education. I am interested in the topic and I found the analysis of the industry quite enlightening. If you are interested in the cost of higher education or online instruction, you might watch bits and pieces from the Frontline site. The entire program is available from Netflix.

I am always a bit skeptical of investigative reporting, but there were some basic facts in this program that stuck with me. I am assuming the facts associated with the issues are accurate. The first was that the programs reviewed (you would recognize the names) spend more money on advertizing than on instruction. The second issue concerned the audience typically targeted, the costs of the education, and the method of payment. Those who spoke for the industry basically argue that there is a need tech schools and higher education institutions are failing to serve. The need involves students who are often low income folks who work and need a college education to advance themselves. Fair enough. My department actually has an online major and I work in a couple of online graduate programs as a state school faculty member, but I understand the options and the number we can reasonably educated are limited. Clearly there is a need. However, the cost of the commercial programs is not only higher than degrees from state institutions, but also than the average for private institutions.The contrast between the resources of the group served and the cost of the experiences does seem disturbing. Finally, it appears most students find themselves financing their education with student loans and a significant number build up debt levels than cannot repay.

One of interesting positions the Frontline program seemed to emphasize is that those developing for-profit higher education are looking for financially troubled, but regionally accredited institutions. By taking over such institutions, the existing accreditation of the institutions allows students enrolling, often in new online ventures, to secure student loans. The institution is saved and can continue a brick and mortar existence, the money is in the online programs.

The discussion at the Frontline site is quite interesting. As you might expect there are responses from folks who work at online institutions and from students who now feel cheated. My comments here really are focused on the costs incurred by students who cannot repay. I understand the rising cost of an education is a general problem, but the argument here is that those with greatest need are paying the most.

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