Government Cracks Down on For-Profit Universities

university of phoenixStudents seeking higher education now have more options than ever before.

Gone are the days when getting a college degree required packing up your stuff after high school graduation and moving into a dorm room. With more working adults trying to further their education, more universities have come along to meet their needs.

For-profit universities, like University of Phoenix, have faced a dramatic rise in enrollment due to their flexible class schedules and multiple locations. For-profit schools are currently the fastest growing area of higher education. Although these for-profit schools can be costly, the convenience of them has proven to be worth the extra money to many students.

For-profit universities are also known for having some questionable tactics for recruiting students, which the government has recently been scrutinizing more closely. Recruiters for these schools are often paid based on how many students they enroll. Some for-profit university recruiters have been accused of misleading potential students and encouraging them to take out loans to pay for their education. The more students enroll in these programs, the more federal aid the school receives, which is where the government scrutiny comes in.

To eliminate the act of students taking out student loans they cannot repay, the Obama administration has proposed a ban on recruiter’s pay being tied to the number of students they enroll in a program. A major concern of the government is that students are being lured into these programs, taking out loans they can’t afford and graduating with degrees that are not putting them into a higher income position. That of course leads to default on student loans, which cost taxpayers.

When looking for an online degree or traditional degree program, it’s important to make sure you find one that is going to help you be successful. It’s important not to let one recruiter from a school pressure you into something that may not meet your educational needs.

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