"The new findings add to an already-large pile of evidence that for-profit education is a terrible investment relative to the alternatives. A 2011 study found that for-profit students make between $1,800 and $2,000 less per year than they would have attending a different kind of school. The median debt burden for for-profit graduates is almost $13,000 higher than for public school graduates. Roughly six in 10 for-profit students take out loans, compared to just 13 percent of community college students.
The schools also spend about a billion dollars more per year on recruiting than on educating those they recruit. The parent company of the University of Phoenix paid a $78 million settlement in 2009 after a whistleblower showed that the school linked recruiter pay to the number of students each employee enrolled.
For-profit schools may fail to deliver on their promises to students, but they keep faith with their executives. For-profit CEOs get paid 26 times more than top officers at traditional colleges and their compensation is determined by corporate profits rather than student achievement or graduate success rates. The money those executives extract from the system is ultimately coming from taxpayers, as the industry gets 90 percent of its revenues from government student lending."
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