Caution With For-Profit Universities

Predatory Lending Tactics at For-Profit SchoolsHalf of students enrolled in for-profit schools don’t graduate

An Education at a For-Profit University Is Often a Bad Choice advises prospective students to thoroughly research and investigate before taking courses at any for-profit school. Be especially vigilant of recruiters from for-profits pitching student loans, either federal or private loans, as the main form of financing.   These type of schools usually do not follow through on job placement promises and many students are left with big student loan balances to repay.

In some cases when students do not find jobs upon graduation,  the for-profit school itself will hire it’s own graduates for a period of time to misleadingly inflate it’s percentage of graduates employed.  These sham numbers are then used as a basis to show to the next crop of marks — new students being recruited.  They also use these numbers to mislead federal regulators into thinking it’s graduates are actually finding jobs.

Aggressive Marketing and Recruiting Techniques are Used By For-Profit Universities

Endless TV commercials, radio ads, mailings and billboards, have made the country’s largest for-profit universities into everyday known names. But these marketing methods are just the traditional types of marketing – the same marketing used by all kinds of businesses.  The for-profit university sector, however, also utilizes far more intrusive marketing schemes. Schools will bombard prospective students with phone calls, drive by their homes or even try to recruit them in the hospital. They promise flexible schedules, affordable classes, and job placement, and then fail to deliver. Note that for-profit universities sometimes advertise on this web-site.  Such advertisements do not amount to an endorsement by

Federal regulators and lawmakers have begun cracking down on for-profit colleges for misleading and aggressive recruitment practices. Investigations are mounting, and efforts are under way to cut off access to federal dollars for advertising. Hopefully these restrictions will come to fruition and contain these aggregious practices.

It is a tragedy that taxpayer funded student aid monies were ever allowed to be used for tuition at for-profit universities. A 2012 Senate investigation found that 15 of the largest for-profit colleges received 86 percent of their revenue from federal student aid programs. Because of deceptive marketing practices, students looking for a quality college education often find themselves at for-profit institutions that are more concerned with profit margins than career readiness.

For-Profit Colleges Prey on Members of the Military

The Apollo Education Group recently admitted that its subsidiary, the University of Phoenix, is being investigated by the Federal Trade Commission for deceptive advertising and marketing. The school is the largest recipient of federal student aid for veterans, taking in nearly $1.2 billion in GI Bill benefits since 2009.

Since 2009, 40 percent of G.I. Bill tuition benefits have gone to for-profit schools. Corinthian Colleges,
the for-profit giant that filed for bankruptcy in 2015 amid allegations of predatory lending and lying to government regulators about its programs, received $186 million in military tuition funding.

The same 2012 Senate investigation found evidence of schools deploying teams at veterans hospitals and wounded warrior centers to enroll students. Investigators said recruiters misled or lied to service members about their military benefits covering the full cost of tuition.