November 30th, 2009
Trickle-Up Effect: For-Profit Colleges Get Government Funding?
It makes a lot of sense when you stop and trace everything back to the root. Unemployment went up. When unemployment goes up, people go back to school. The people who go back to school because they’re unemployed are, shall we say, less than affluent–they went back to school because they lost their jobs. Good on them! A higher education is a great way to improve your hirability. These people took advantage of financial aid to continue their education, which makes perfect sense.
When the Student Is Ready, the Funding Will Appear
On the governmental side of things, Obama has declared war on stupidity. Fantastic, wonderful–I for one like this war much better than our wars on terror and drugs (I think, too, that a war on stupidity would do triple-duty and help us out in those other two wars). His stated goal is for every American to enroll in some form of postsecondary education. To this end, some funding initiatives went through. The most important of which was an increase to the maximum Pell Grant, which is the most popular government-funding option for low-income students.
All Roads Lead to Online Education… Sort Of
So, we’ve got a greater number of low-income students going for postsecondary education, a governmental call-to-action for anyone considering enrolling in said educational programs, and more money being pumped into financial aid. Because it’s difficult to attend school without some kind of employment, and many of these new students have families to support, a more flexible option for education is preferable: online education. Online education has also gained quite a bit of credibility and even notoriety in past few years. It’s also got lower overhead–no commute, no parking fees, no need to get out of your PJs or eat anything other than cereal all day long.
Bringing It All Back Home: For-Profit Colleges Raking in the Government Funding
Again, it makes a lot of sense. Today’s students aren’t looking for a grandiose Western education replete with an unparalleled knowledge of the contemporary canon. No, they want a better shot at the limited jobs ASAP. This is why career-focused degree and certificate programs are gaining in popularity at the moment–and because they’re gaining in popularity, they’re the ones collecting the money that the government is handing out.
Pragmatism is the hallmark of many online universities, whether they admit it or not. It might not be everyone’s first choice, but it’s almost always the most practical, particularly for those looking for the aforementioned career-oriented schooling.
Since July 1, 2009, when the maximum Pell Grant went up, “Washington paid out 45 percent more through the program than during the same period a year ago [...] But the amount of dollars heading to for-profit, or “proprietary,” schools is up even more–about 67 percent,” the Associated Press found. With a few for-profit schools pushing the boundary of what’s known as the 90-10 rule (a regulation that requires schools to get at least ten percent of their funding from non-governmental sources), a few critics are suggesting that these schools are just cashing in on the gov’t-cash gold mine. From the AP:
The industry is “an aggressive sales operation that has a voracious appetite for recruiting the poorest students,” said Barmak Nassirian, associate executive director of AACRAO, a group representing admissions officers and registrars at traditional colleges. “The victims here are the students themselves and the taxpayers, who have to pick up the tab.”
Time will tell whether these colleges are doing more harm than good. In the meantime, I’m hopeful. A lot has changed in education since the 90-10 rule was necessary, and the students in these programs today are–hopefully–a bit more shrewd and bit more knowledgeable. Thanks to the Internet, it’s quite a bit harder for companies to get away with scamming students. I’m casting my vote in favor of the for-profit schools and hoping that the students enrolled go on to fulfill the dreams behind Obama’s plan: making America number one in education and building a brighter future on a strong base of higher education.
