What’s Next for the For-Profit Education Sector?
Posted By Arthur Murray on September 20, 2016 at 1:01 pm
Earlier this month, the parent of for-profit education giant ITT Technical Institutes announced it was immediately shuttering all campuses. It was a move that put the education futures of more than 40,000 students in limbo, with students unsure of whether they could or should transfer to other universities. The ITT Tech closings came on the heels of similar action last year by its for-profit brother Corinthian Colleges. Both schools ran afoul of increased attention from federal education authorities, leaving many to wonder what’s next for the for-profit education sector.
Much of the controversy surrounding for-profits has centered on allegations that the schools have swollen their enrollment ranks with fraudulent practices that have resulted in large student loan debt and poor outcomes for students.
GoodCall reporters Derek Johnson and Donna Fuscaldo have been following the latest in the for-profit scene. Johnson recently chronicled the confusion and frustration felt by ITT Tech students, while Fuscaldo has monitored how federal authorities have recently looked at student loan servicers, including San Francisco-based megabank Wells Fargo.
In a three-part series beginning later today and concluding Wednesday, Johnson and Fuscaldo will take a look at what’s next in the near term in the for-profit sector, how this year’s presidential election could affect it, and why some nonprofit public and private universities are keeping a close eye on the situation.
Later today: Is Ashford University the next ITT Tech?