Director: Daniel C. Levy

Big Growth in For-Profit Colleges

PROPHE Summary:

Figures from large for-profit colleges show great growth over the last year. In nine of ten reported cases, the enrollment growth has been greater than 20 percent, and has been as high as 101 percent. The data come from colleges ranging from almost 30,000 to over 420,000 students (Phoenix in the Apollo Group).  The key explanation for the boom is the recession and how the tough labor market leads many to become (mostly non-traditional) students.

For the full story, see "For-profit Colleges See Large Increases in Enrollment and Revenue" By Erica R. Hendry. The Chronicle of Higher Education.August 25, 2009

PROPHE Observation:

.How recessions (and economic booms) affect higher education enrollment is a longstanding issue. A modern sub-question of great importance is the impact on for-profit colleges. In the US such colleges have grown to capture some 8 percent of enrollment. How much the present surge slackens when there is economic recovery versus how much the new exposure to for-profit colleges contributes to a lasting enrollment boost remains to be seen. It will also be interesting to see data on for-profits in other countries.