For-profit schools spend more on marketing and recruiting than on instruction. (Amateurs.)
22.7% of those who had attended a for-profit college had defaulted on their student loans three years after the loans became due. At public institutions the rate was 11%. For students who had attended private nonprofit schools it was 7.5%.
Publicly traded companies operating for-profit colleges had an
average profit margin of 19.7 percent, generated a total of $3.2 billion in pre-tax profit and paid an average of $7.3 million to their chief executive officers in 2009. So what’s the problem?