2011 proprietary schools

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Proprietary Schools: The Real Deal

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What is a proprietary school?

• For-profit institution

• Operated by owners or investors


How do I identify a proprietary school?

• Visit the College Navigator website http://nces.ed.gov/collegenavigator/

• This site is run by the Department of Education and will tell you if a school is:– Public– Private non-profit– Private for-profit


Look up a school and see what the type is.

General information: (216) 555-5555

Website: Website address

Type: 4-year, primarily associate's, private for-profit

Awards offered: Associate's degreeBachelor's degree

Campus setting: City: Large

Campus housing: No

Student population: Number of and type of students (all undergraduate)

Student-to-faculty ratio: ## to 1


Concerns about Proprietary Schools

• Fraudulent recruitment• The U.S. Government Accountability Office

went undercover at 15 proprietary schools. They found:

• Admissions or financial aid representatives at all 15 schools provided “deceptive or otherwise questionable statements”

• Video• http://www.gao.gov/products/GAO-10-948T



• Graduation rates

• According to Education Trust, the graduation rates for schools offering bachelor degrees:

• Proprietary – 22%• Public – 55%• Private non-profit – 65%



• Cost

• According to Bloomberg, the average cost of attending a four-year college:

• Proprietary – $30,900• Public – $15,600• Private non-profit - $26,600



• Student Loan Debt

• According to Education Trust, the student loan debt among bachelor’s degree recipients:

• Proprietary – $31,190• Public – $7,960• Private non-profit - $17,040



• Default on student loans

• Default rates 4 years into repayment, according to the Government Accountability Office :

• Proprietary - 23.3%

• Public – 9.5%• Private non-profit - 6.5%



• Here are some of the things that can happen if you default on a student loan:

• The government can garnish your wages• The government can take your tax return• You cannot get financial aid to continue your

education



• Employability

• According to a study by the Center for Analysis of Postsecondary Education and Employment, graduates from proprietary schools are:

• 4.8-6.7% more likely to be unemployed than graduates from public and private non-profit schools


Resources

• United States Government Accountability Office– http://www.gao.gov/assets/300/294057.pdf

– http://www.gao.gov/assets/130/125197.pdf

• The Education Trust– http://www.edtrust.org/dc/press-room/news/broken-promises-for-profit-colleges-fail-our-

students

• Bloomberg– http://www.bloomberg.com/news/2011-05-26/for-profit-college-costs-surpass-nonprofit-

peers-in-u-s-study.html

• Center for Analysis of Postsecondary Education and Employment – http://www.frbatlanta.org/documents/news/conferences/

11employment_education_demming.pdf

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Questions?

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Stacy Watts, Resource Center [email protected]

216-241-5587, ext. 140