Ask HN: I work at a for-profit college.What is going on here?

by wturner on 2/1/2013, 12:11 AM with 3 comments

I work at a for profit college. The college enrollment is declining and the drop out rates are higher than they have ever been. This college is now building another branch with the same (dated and failing) structure in a different location but within the same general area ( same state and not far from the original branch). Common sense dictates that this does not make sense financially, hence whatever is [really] happening I suspect is something one would need a business degree, law degree or some other insight to truly understand. So I'm asking what could possibly be going on? Is it as simple as "They really think they'll make money" or is it more along the lines that this is part of an "Elaborate exit strategy to boost up the value of the college before the great crash" hence allowing some subset to walk away financially well off. I know I'm exaggerating and being extreme, but you get the drift. I really think there is something else going on here.

  • by markhall on 2/1/2013, 4:25 AM

    The problem is much bigger than most people can even fathom. Many articles, including the one mentioned by atsaloli will provide insight into the situation. As to your question of whether it is 'they think they will make money' OR 'elaborate exit strategy, logic would indicate and the evidence overwhelmingly supports the latter.

    I am (unfortunately) confident that history will not look favorably on the majority of these for profit colleges that pose as reputable institutions. The incentives are completely misaligned.

    Here are a few good references to look at:

    http://usatoday30.usatoday.com/news/education/story/2012-07-...

    http://www.nber.org/papers/w17710

    http://www.huffingtonpost.com/2011/06/07/for-profit-colleges...

  • by Bramble on 2/3/2013, 2:16 AM

    In addition to the links already posted, I might suggest watching the Frontline documentary College INC http://www.pbs.org/wgbh/pages/frontline/collegeinc/view/

    If you're college is not already in the online arena, my first thought is that an investor is going to come in and try to turn it into another University of Phoenix or DeVry.

  • by atsaloli on 2/1/2013, 12:23 AM

    It's happening at some other schools, too.

    May I recommend to you the blog post "Will Your College Go Out of Business Before You Graduate?" by Mark Cuban?

    ://blogmaverick.com/2013/01/26/will-your-college-go-out-of-business-before-you-graduate/