2011 proprietary schools
DESCRIPTION
TRANSCRIPT
04/08/23 1www.collegenowgc.org
Proprietary Schools: The Real Deal
www.collegenowgc.org
04/08/23 2www.collegenowgc.org
What is a proprietary school?
• For-profit institution
• Operated by owners or investors
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How do I identify a proprietary school?
• Visit the College Navigator website http://nces.ed.gov/collegenavigator/
• This site is run by the Department of Education and will tell you if a school is:– Public– Private non-profit– Private for-profit
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Look up a school and see what the type is.
General information: (216) 555-5555
Website: Website address
Type: 4-year, primarily associate's, private for-profit
Awards offered: Associate's degreeBachelor's degree
Campus setting: City: Large
Campus housing: No
Student population: Number of and type of students (all undergraduate)
Student-to-faculty ratio: ## to 1
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Concerns about Proprietary Schools
• Fraudulent recruitment• The U.S. Government Accountability Office
went undercover at 15 proprietary schools. They found:
• Admissions or financial aid representatives at all 15 schools provided “deceptive or otherwise questionable statements”
• Video• http://www.gao.gov/products/GAO-10-948T
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Concerns about Proprietary Schools
• Graduation rates
• According to Education Trust, the graduation rates for schools offering bachelor degrees:
• Proprietary – 22%• Public – 55%• Private non-profit – 65%
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Concerns about Proprietary Schools
• Cost
• According to Bloomberg, the average cost of attending a four-year college:
• Proprietary – $30,900• Public – $15,600• Private non-profit - $26,600
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Concerns about Proprietary Schools
• Student Loan Debt
• According to Education Trust, the student loan debt among bachelor’s degree recipients:
• Proprietary – $31,190• Public – $7,960• Private non-profit - $17,040
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Concerns about Proprietary Schools
• Default on student loans
• Default rates 4 years into repayment, according to the Government Accountability Office :
• Proprietary - 23.3%
• Public – 9.5%• Private non-profit - 6.5%
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Concerns about Proprietary Schools
• Here are some of the things that can happen if you default on a student loan:
• The government can garnish your wages• The government can take your tax return• You cannot get financial aid to continue your
education
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Concerns about Proprietary Schools
• Employability
• According to a study by the Center for Analysis of Postsecondary Education and Employment, graduates from proprietary schools are:
• 4.8-6.7% more likely to be unemployed than graduates from public and private non-profit schools
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Resources
• United States Government Accountability Office– http://www.gao.gov/assets/300/294057.pdf
– http://www.gao.gov/assets/130/125197.pdf
• The Education Trust– http://www.edtrust.org/dc/press-room/news/broken-promises-for-profit-colleges-fail-our-
students
• Bloomberg– http://www.bloomberg.com/news/2011-05-26/for-profit-college-costs-surpass-nonprofit-
peers-in-u-s-study.html
• Center for Analysis of Postsecondary Education and Employment – http://www.frbatlanta.org/documents/news/conferences/
11employment_education_demming.pdf
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Questions?
04/08/23 14www.collegenowgc.org www.collegenowgc.org
Stacy Watts, Resource Center [email protected]
216-241-5587, ext. 140