Op-Ed

Many Students Fail to Profit from For-Profit Colleges

Published

10 years ago

May 11, 2015

By Julianne Malveaux
NNPA Columnist

According to the National Center for Educational Statistics, about 1.7 million people will receive their bachelor’s degrees, and another nearly 750,000 will receive associate’s degrees this May and June. The numbers have been rising over the past 10 years, with 22 percent more receiving bachelor’s degrees (the growth in women’s degrees is faster than that of men), and 12 percent more associate’s degrees (again, with the degrees awarded to women growing faster than those awarded to men).

Too many of these students will graduate with heavy debt. While the data suggest that the average student graduates with about $30,000 of debt, the fact that some students have no debt at all makes the number even higher. African American students are nearly twice as likely to graduate with debt as Caucasian students. And it is often much harder for African American students to find jobs than it is for others. Still, a college degree makes a difference in life chances and lifetime earnings, which is one of the reasons that public policy has focused on postsecondary education.

Students who have attended for-profit colleges go to school with the same hopes and dreams as those who attend traditional not-for-profit-universities. They attend schools such as Kaplan, DeVry and Corinthian because they want to improve their education and find better jobs. They go into debt, and seek grants because they believe the investment is worth it. And too many of them have been sold a bill of goods.

Corinthian Colleges, Inc. had more than 77,000 students at its peak, although those numbers have dropped since then. Their students, in 2012-2013 were mostly adults who worked full time, mostly minority (51.8 percent), and mostly low-income enough to qualify for Pell Grants (72.9 percent). According to one source, these students borrowed more than $7,600 each year to pay for their education.

Corinthian is among the for-profit schools that depend on the federal government for their income stream. They direct them to apply for Pell grants, push them to seek federal student loans that have subsidized interest rates, and encourage them to get bank loans with higher interest rates. They tell students that these loans are worth it because it will help them get better jobs later.

The federal government has been scrutinizing Corinthian and other for-profit colleges for years, especially because they have found that these colleges often exaggerate their success in placing students in better jobs. Now, Corinthian Colleges have shut down, leaving more than 16,000 students stranded. These students have used up semesters of their Pell grant eligibility (which is capped at 12 semesters), and have thousands of dollars of debt. If they are mid-degree, they face the challenge of trying to transfer credits to another college. While there may be some relief for these students who owe money, others will either be forced to repay debt or imperil their credit standing.

Is Corinthian the exception, or is it the rule in the world of for-profit colleges? We know that these colleges target adult learners, and market to minority populations. More than half of the students at Corinthian were students of color, and at many of the other for-profit colleges the enrollment of minority students exceeded 30 percent. We know that these colleges rely on tuitions for their profit, which means that when they find students who qualify for Pell grants, it boosts their bottom line.

According to the California Association of Private Postsecondary Schools (CAPPS), at least 60 percent of the students enrolled in the top six for-profit colleges received Pell grants. Corinthian topped the group with nearly 73 percent of their students receiving Pell grants, but ITT Technical Institutes was not far behind with a 71.8 of their students receiving Pell grants. In comparison, 39 percent of the students at public colleges, and 34 percent at private nonprofit colleges have Pell grants.

Some for-profit colleges do a better job than Corinthian, and many have not run into trouble with the federal government. Still, because taxpayer dollars are being used to finance these colleges, they must be more carefully scrutinized both by the federal government and by accrediting associations. Furthermore, the Corinthian debacle is a warning to students who might get a lower cost and better education by going to a public university or to a community college. Before enrolling in one of these colleges, students need to consider other options, and also check on the placement records these schools like to brag about.

Students of color are especially vulnerable to the hype these colleges offer. They say they provide opportunities and jobs, but too often they don’t. They market to those at the periphery; those who believe their lives would be significantly improved with education. Their lives can improve with more learning, but the students must beware of for-profit colleges that often promise more than they can give, and push students into debt. The closing of the Corinthian Colleges, Inc. is a cautionary tale for those who choose for-profit colleges as the gateway for their hopes and dreams.

Julianne Malveaux is an author and economist. She can be reached at www.juliannemalveaux.com.

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Actor, Philanthropist Blair Underwood Visits Bay Area, Kicks Off Literacy Program in ‘New Oakland’ Initiative

These community activations were coordinated with the San Francisco-based non-profit program “Room to Read.” Ray said he is also donating his time to read and take pictures with students to encourage their engagement and to inspire them to read more. The inspirational book “Clifford Ray Saves the Day” highlights Clifford Ray’s true story of saving a dolphin.

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1 month ago

February 18, 2025

Oakland Post

Blair Underwood (left) and Barbara Lee (right). Courtesy photo.

By Paul Cobb
New Oakland Series
Opinion Part 3

The Post mentioned three weeks ago that a number of our local luminaries were coming together to support the “New Oakland” movement. As this current national administration continues to eliminate our “legacy” institutional policies and programs left and right, most communities find themselves beyond “frozen” in fear.

Well, esteemed actor, long-time Bay Area supporter, and philanthropist Blair Underwood returned to Oakland this week to speak with city leaders, community trust agents, students, the Oakland Post, and local celebrities alike to continue his “New Oakland” initiative.

This week, he kicked off his “Guess Who’s Coming to Read” literacy program in some of Oakland’s middle schools. Clifford Ray, who played the center position of the 1975 World Champion Golden State Warriors, donated close to 1,000 books. Ray’s fellow teammate Charles “The Hopper” Dudley also gave Converse sneakers to students.

Underwood also spent quality time with the Oakland Ballers ownership group and visited the amazing Raimondi Park West Oakland community revitalization site. In the 1996 TV film Soul of the Game, Underwood played the role of the legendary first Black Major League Baseball player Jackie Robinson and commended the Ballers owners.

“This group of sports enthusiasts/ philanthropists needs to be applauded for their human capital investment and their financial capital investment,” Underwood said. “Truly putting their money and passion to work,” Underwood said.

Underwood was also inspired by mayoral candidate Barbara Lee’s open-minded invitation to bring public-private partnership opportunities to Oakland.

Underwood said he wants to “reinforce the importance of ‘collaborative activism’ among those most marginalized by non-empathic leadership. We must ‘act out’ our discomfort with passionate intentions to create healthy change.”

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Councilmembers Ramachandran, Kaplan, Unger Identify Funds to Save Oakland Fire Stations

Our budget crisis – one of the worst in Oakland’s history – is compounded by the fact that people do not feel safe coming to Oakland due to our public safety crisis. By investing in our fundamental public safety resources today, we can send a signal to the world that Oakland is open for business. We have such a rich and vibrant culture, arts, and food scene that is worth celebrating – but we can only showcase this if we are able to keep our neighborhoods safe. Having fully functioning fire stations are absolutely essential to these efforts.

Published

1 month ago

February 18, 2025

Oakland Post

Councilmember Janani Ramachandran. Courtesy photo.

By Janani Ramachandran

There is no greater concern to the people of Oakland today than public safety. Fire stations are the bread and butter of essential city services – and every day that we have stations shuttered, we imperil the lives of our community members. In response to widespread outcry over the current and planned closure of stations, myself, along with Councilmembers Kaplan and Unger, have painstakingly worked to identify millions of dollars of new funding to save our stations. The legislation we introduced on Thursday, February 13th, will amend our budget to prevent the closure of four fire stations that are currently on the chopping block due to our budget crisis and will re-open two closed stations that have already been closed – Station 25 and 28 – in the near future. The resolution that will provide the funding to keep our stations open will go before the full City Council for a vote at our meeting on Tuesday, March 4^th at 3:30 PM – and we invite you to join us at City Hall to share your perspective on the topic.

With the devastating Los Angeles fire at the top of people’s minds, terrible memories of Oakland’s own wildfires are re-surfacing from the 1991 Oakland Hills Firestorm to the Keller fire just a few months ago – and how essential fire stations are to mitigating these catastrophes. But in Oakland, our fire stations don’t just fight wildfires – they also provide emergency medical services to our most vulnerable constituents, put out structural fires and encampment fires, and much more.

We recognize that there are a number of competing interests and important initiatives fighting for sparse City resources. But from my perspective, core safety services are the most pivotal functions that a City must spend its resources on – especially given the outcry we have heard around fire stations.

The fight to save our stations is not over. The resolution we introduced is a critical first step, and there are hurdles to overcome. If you support keeping our fire stations open, we invite you to be a part of the solution by making your voice heard at the March 4^th City Council meeting at 3:30 pm.

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NNPA Launches National Public Education and Selective Buying Campaign

“We are the trusted voice of Black America, and we will not be silent or nonresponsive to the rapid rise of renewed Jim Crow racist policies in corporate America,” stated NNPA Chairman Bobby R. Henry Sr. “The Black Press of America continues to remain on the frontline keeping our families and communities informed and engaged on all the issues that impact our quality of life.”

Published

1 month ago

February 18, 2025

Oakland Post

iStock.

Washington, DC: The National Newspaper Publishers Association (NNPA), representing the Black Press of America, has announced the planning and implementation of a national public education and selective buying campaign across the nation in direct response to those corporate entities that have dismantled their respective Diversity, Equity and Inclusion (DEI) commitments, programs and staffing. NNPA Chairman Emeritus Danny Bakewell Sr. explained, “Now is the time for the Black Press of America once again to emphatically speak and publish truth to power.”

At a recent convening of NNPA member publishers and editors, a united resolve was reached that each member publication of the NNPA will begin a national public education campaign coupled with the release of research data on those American companies that are engaging in efforts to sanction racial injustice, inequitable polices, divisive leadership, and economic apartheid in America.

“We note forthrightly that Black Americans spend $2 trillion dollars annually as consumers of products and services throughout the United States,” NNPA President and CEO Dr. Benjamin F. Chavis Jr. emphasized. “We now must evaluate and realign to question why we continue to spend our money with companies that do not respect us,” Chavis continued. “This now must come to an end. These contradictions will not go unchallenged by 50 million Black Americans who have struggled for centuries to ensure equality, fairness and inclusion in our nation’s democracy.”

A selective buying campaign involves exercising the right to select what we spend our money on and who we spend our money with. We are starting with targeting TARGET.

The following are some of the major American companies that have publicly retreated from Diversity, Equity and Inclusion: