For-profit colleges see enrollment slow as student loan issues take center stage
11/19/2010
By Credit.com Staff
The recent statistics revealing the high levels of student loan debt carried by graduates of for-profit colleges has prompted college-bound adults to reconsider their options. The nation's largest for-profit institution, University of Phoenix, saw enrollment drop 10 percent from the previous year, according to the Chronicle of Higher Education.
Other for-profit institutions, such as ITT Educational Services and Corinthian Colleges, Inc., saw their enrollment figures decline over the same period by 3.9 and 5 percent, respectively.
The declines are the result of a number of factors, including new government regulations that will slash federal funding for institutions that cannot prove their program prepares students for gainful employment. Recent data shows large numbers of graduates who attended for-profit schools carry high student loan rates and degrees that do not help them secure jobs in the marketplace. Congress is currently working on methods to measure the value of certain programs offered by for-profit institutions.
As a result, more young adults may be turning away from these institutions and exploring other educational options.
