University of Phoniness, Federally Funded?

High Education

Huffington Post gives us an interesting rant about the for-profit University of Phoenix. We don't want to go out on a limb and be harsh critical, since we know people who have graduated from that school, and who are far smarter or more organized that we ever hope to be. Often enough, things are what you make of them, and if we assume a reasonable and general level of responsibility on the part of Apollo Group, which owns the U of P, then a motivated student is likely to get something from the program.

Despite the successes of people those we know, it is probably imperative that the financial ties between the government and the schools be cut. Conservatives often like to point out the wonders of the private sector, and how government needs to step out of the way. Well they can begin with the for-profit education industry. Too often what some conservatives are pushing is a mere parody of economic freedom and self-reliance. Sarah Palin herself, the quitting governor, talked the independence game while Alaska itself depended on largesse redistributed via the federal government from other parts of the nation.

What we have with for-profit universities is a funding dysfunction. The students are dependent on the federal government to fund the tuition, but the schools do not show a similar commitment to student success.

These schools are not getting the education job done in terms of either graduation rates or cost. Nor can we underestimate the size of the elephant in the closet that largely gets ignored. To the extent a for-profit is also largely internet based, what is the quality of that education in terms of academic honesty? One can legitimately question the rigor of these programs and the structure, given the cost and the graduation rates.

One often hears the refrain that our non-profit colleges--public and private--can cost just as much and leave the graduate equally saddled in debt and just as bad off. That may be true, but most colleges that are non-profit rely on physical plant, academic rigor, student body, and reputation to attract the "top" educators and maintain decent, if not high, graduation rates. It's a concern for them. They place marketing value in the success of a broader base of their students. And, importantly, they are not beholden to shareholders. Further, in the non-profit sector one is able to pursue a costly education, or find a cheaper version at the community college. There is a school of quality for nearly every budget, with success or failure of student body tracked.

No such options with private colleges, charging you top dollar and shifting more of the education on the student. In some cases you find yourself listening to your team members educate you rather than anything definitive from the instructor. Then again, it is far less of a rigorous progress when applying to be instructors at the for-profit schools. True professionals don't aspire to teach at DeVry or College America. If given the choice to teach at the University of Phoenix or ASU, the entire staff of the former would probably get up and walk away across town.

In most cases the federal government ends up on the hook for inferior product.

The incentives are all wrong. Instead of being there to help students receive an education at an affordable cost to better prepare them to join the workforce, these "for-profits" are employing the most egregious money-grubbing tactics to bilk their students and the federal government. How's that for an Alma Mater? Senator Harkin and the GAO's work has exposed once and for all how utterly corrupt these for-profit "universities" and "colleges" really are.

(Huffington Post)

Another of our chums has repeatedly expressed a desire to go back to school. She has opted for College America thus far, and one can travel to that website and get no up front information as to the cost. That's typical of these schools. The idea is to get you in, to get you talking to a face, to get you signing on the dotted line. It was suggested to her that she should instead just enter one of Phoenix's many community college programs. Unlike in the past, community colleges today often serve a variety of practical needs, offering low cost or specialization in certain work related fields of study. At the end of your time there, you can leave with a certificate or associates, or even transfer up to a four year school. There is flexibility for that low cost, but also a broader harmony with the educational structure as whole.

Not so with the for-profits. Our friend does not want to hear too much wisdom from knowing heads, rejecting advice. The advisor she spoke with made a good pitch and she wants to give it a go. Whether she completes the program is another story, but if she starts the program, the school will reap the greater immediate reward.

What we have here is a good demonstration on how the private sector is not doing a better job in the education department. The entire for-profit education structure at the college level is dependent on financing from the federal government and it would be an interesting exercise to see if they could function without that steady, reliable flow of cash. We seriously doubt it.

The government is not off the hook either, since they are the partner providing the funding and foundation for this shaky edifice; oversight is lacking all around. Let's not kid ourselves next time we hear someone randomly and fervently praising the private sector or privatization as inherently more virtuous or cost efficient. Often both sectors are woefully managed and quite wasteful and yet each is capable--theoretically capable--of handling a responsibility if responsible minds are in charge.

Let us praise the private sector when the business model is truly independent of the government and getting the job done.

Update:
Here, via Bloomberg and Dealbreaker, we have some additional university news. Young gal pays ridiculous amount of money for a worthless degree at a for-profit school in Florida that has revenues in the billions. Due to lack of appropriate job, she is now stripping. The corporate backers, including Goldman, Sachs, have done well, but many of the students have suffered. Amusing in so many ways. The idea that a parent would sell their home an invest so much into an obviously-not-26 year old daughter's education by being impressed by a three building campus stains the imagination. You don't pay $70 per meal for a meal at McDonald's and then get disappointed at the taste.