(NNPA)—Weeks before the U.S. Department of Education announces a new rule governing career education programs, the Center for Responsible Lending has released research that finds high-cost, for-profit colleges make millions each year by targeting students of color. While these college profits are generated largely from taxpayer funding, their students incur heavy debts with low graduation rates and nearly no marketable skills.
The report is titled, Do Students of Color Profit from For-Profit College? It compared educational and financial outcomes at public or private, non-profit schools with those at for-profit institutions. CRL researchers found that a student enrolling in for-profit, four-year colleges would pay more than $40,000 more than a similar program at a public institution. Though for-profit colleges enroll only 13 percent of all college students, they account for nearly half of all student loan defaults.
According to the report, “Because students of color disproportionately attend for-profit colleges, borrow more, and have lower graduation rates, they may be at greater risk and experience disproportionate harm.”
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