Tuesday, May 27, 2014

There go the profits

A study commissioned by for-profit higher ed concludes that 44% of their student bodies would lose loan eligibility under the proposed gainful-employment rules.

Another way of interpreting this data is that 44% of the people they are admitting have no business being in college.  This is what I have repeatedly argued is the churning phenomenon on which many for-profits' profits depend:  Admit unqualified "customers," get them federal loans; let them drop out and default; pocket the tuition.

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