1. Proprietary Schools:
The Real Deal
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2. What is a proprietary school?
• For-profit institution
• Operated by owners or investors
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3. 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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4. Look up a school and see what the type is.
General information: (216) 555-5555
Website: Website address
4-year, primarily associate's, private for-
Type:
profit
Associate's degree
Awards offered:
Bachelor's degree
Campus setting: City: Large
Campus housing: No
Number of and type of students (all
Student population:
undergraduate)
Student-to-faculty ratio: ## to 1
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5. 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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6. 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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7. 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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8. 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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9. 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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10. 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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11. 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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12. 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-
• Center for Analysis of Postsecondary Education and Employment
– http://www.frbatlanta.org/documents/news/conferences/11employment_education_demming.pdf
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13. Questions?
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14. Stacy Watts, Resource Center Coordinator
swatts@collegenowgc.org
216-241-5587, ext. 140
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