We’ve all seen the ads, DeVry University, University of Phoenix, ITT Technical Institute… the list goes on and on. We know these schools are unique and different from a traditional 4 year university—many offer classes online, are shorter in duration and promise to help place you in your field of work after graduation. They benefit a growing population of low-income and working individuals who require the offered flexibility to further their education.
What also sets these universities a part from traditional colleges and universities is that they make a profit. All other schools, public or private, 2-year schools or 4-year schools, are non-profit organizations.
Recently, for-profit universities have come under heavy scrutiny from congress for abusing federal student aid funding. About 75% of for-profits’ school revenue comes from federal grants and loans.
What we’re seeing in the national trends among college-goers is a little alarming. Roughly 10% of people attending an institute of higher education go to for-profit colleges like DeVry. However, that 10% utilize 24% of the federal student aid. This 24% amounts to something close to $26 billion of tax payers monies that are going into the pockets of for-profit university entrepreneurs.
Frontline recently did a segment called College Inc. that interviewed “education entrepreneurs” to learn more about the world of for-profit education. It raises flags about universities’ recruitment tactics, the price of degrees and the promise of work after college.
If you are considering some form of post-secondary education, its worth your while to watch the Frontline segment! We’ll also be following and posting what congress has to say about the future of profit-generating universities so stay tuned.

