My friend Per von Zelowitz’s recent post on student loan debt prompted me to examine one of the drivers of the growth from about decade ago: for-profit colleges.
Sure enough, The Century Foundation recently explored the resurgence in student debt since 2017, pointing specifically to the trend of nonprofit institutions renting “out their names to third-party, for-profit online program management companies (OPMs). OPMs run many aspects of colleges online programs, including marketing, and in exchange frequently take half or more of the tuition revenue charged to federal student loans.”
While these observations are retrospective, a recent report from The Brookings Institution also pointed to how the for-profit sector is better poised for growth in this environment since, pre-pandemic, “72% of students in four-year for-profits were attending exclusively online, compared to just 12% of students in four-year public colleges.”
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