For profit colleges have been a menace in the world of higher education for many decades now, but Patricia Cohen explores how the latest move towards exploiting college students has been for these colleges to claim not-for-profit status. The tax exempt salaries of these college officials hit 6 to 7 figures annually, while saddling young college students with debt that their degrees do not help pay back. But the government is not far behind the chase – for-profit schools that cannot prove that the educations their students receive will enable them to repay student loans can have their state funding cut off. But not-for-profit schools are not subjected to such scrutiny, making the switch even more beneficial for money-hungry universities.
Read an excerpt of the article written by Patricia Cohen:
After a recent government crackdown on the multibillion-dollar career-training industry, stricter limits on student aid and devastating publicity about students hobbled by debt and useless credentials, some for-profit schools simply shut down. But a few others have instead dropped out of the for-profit business altogether, in favor of a more traditional approach to running a higher education institution. And the nonprofit sector, it turns out, can still be quite profitable. Consider Keiser University in Florida. In 2011, the Keiser family, the school’s founder and owner, sold it to a tiny nonprofit called Everglades College, which it had created. ...read more