Online Learning Update

June 19, 2015

The Forces Behind The Decline Of For-Profit Colleges

Filed under: Online Learning News — Ray Schroeder @ 12:05 am


Barring a last-minute legal decision, as of July 1, the nation’s for-profit colleges are going to be subject to a new Education Department rule known as gainful employment. That is: Do students end up earning enough to pay off their loans? A trade group of career colleges is suing to stop the rule, but this is far from the only monkey on the sector’s back. As recently as 2010, these schools enrolled one in nine college students. Today, some are shutting down, cutting back, tanking in the stock market, even going bankrupt. The bellwether was the giant Corinthian Colleges a year ago, but many others are in trouble as well. Even the University of Phoenix, which five years ago had 460,000 students, has seen that number fall by half.

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