Phi Beta Cons

That Puzzling World of For-Profits

Charlotte Allen at Minding the Campus responded to my post on her post about  for-profits:

As someone who believes in the free market, I’d like to see for-profit education flourish and even provide models for delivering high-quality higher education efficiently. Those models have yet to emerge, as far as I can see.

The reason, in my opinion, is the corrupting influence of federal money.

Yes, Phoenix has been around for years, but it’s also changed its business model in order to maximize enrollments. It started out focusing on people who already had pretty good jobs but needed college degrees in order to qualify for promotion to better jobs at their companies. This was undoubted a fairly mature and highly motivated group and far less dependent on federal aid.

Now, Phoenix is essentially in competition with community colleges for low-income, poorly prepared, easily distractible students who aren’t the best prospects for graduating from anywhere. Pell grants are notorious as predictors of student failure — and the vast majority of students at for-profits have Pells. The easy money has also led to the same tuition inflation as has plagued the non-profits, maybe not at Phoenix but elsewhere. I read about a beauty school that charges $16,000 for its one-year course, with something like 75 percent of its student body on Pell grants. $16,000 a year for beauty school! And since when is beauty school “higher education”?

The point of my piece is that wherever you have free money, you have rent-seeking — and also disincentives to provide quality services when you can coast along on mediocre services.

Jane S. ShawJane S. Shaw retired as president of the John W. Pope Center for Higher Education Policy in 2015. Before joining the Pope Center in 2006, Shaw spent 22 years in ...

Most Popular

Elections

Hell, No

Welcome to “The Tuesday,” a weekly newsletter about language, culture, politics, and other things you can fight with your family about at Thanksgiving. To subscribe to “The Tuesday” and receive it in your inbox, follow this link. The Case against Trump In 2016, my friend Roger Kimball of Encounter ... Read More
Elections

Hell, No

Welcome to “The Tuesday,” a weekly newsletter about language, culture, politics, and other things you can fight with your family about at Thanksgiving. To subscribe to “The Tuesday” and receive it in your inbox, follow this link. The Case against Trump In 2016, my friend Roger Kimball of Encounter ... Read More

Another Pollster Sees a Trump Win

The Trafalgar Group’s Robert Cahaly is an outlier among pollsters in that he thinks President Trump will carry Michigan, Pennsylvania, or both, and hence be reelected with roughly 280 electoral votes. (I explained his thinking here.) Last week another pollster, Jim Lee of Susquehanna Polling and Research, ... Read More

Another Pollster Sees a Trump Win

The Trafalgar Group’s Robert Cahaly is an outlier among pollsters in that he thinks President Trump will carry Michigan, Pennsylvania, or both, and hence be reelected with roughly 280 electoral votes. (I explained his thinking here.) Last week another pollster, Jim Lee of Susquehanna Polling and Research, ... Read More
Elections

The Only Middle Finger Available

If Donald Trump wins a second term, it will be an unmistakable countercultural statement in a year when progressives have otherwise worked their will across the culture. After months and months of statues toppling and riots in American cities and a crime wave and woke virtue-signaling from professional sports ... Read More
Elections

The Only Middle Finger Available

If Donald Trump wins a second term, it will be an unmistakable countercultural statement in a year when progressives have otherwise worked their will across the culture. After months and months of statues toppling and riots in American cities and a crime wave and woke virtue-signaling from professional sports ... Read More

Trump vs. Biden: A Rundown

One week out, the contrasts are worth assessing. Foreign policy Biden so far has issued no substantive critique of Trump’s foreign policy other than banalities that Trump’s comportment and unpredictability have offended allies and tarnished America’s reputation. But who exactly, according to Biden, is ... Read More

Trump vs. Biden: A Rundown

One week out, the contrasts are worth assessing. Foreign policy Biden so far has issued no substantive critique of Trump’s foreign policy other than banalities that Trump’s comportment and unpredictability have offended allies and tarnished America’s reputation. But who exactly, according to Biden, is ... Read More

The Pollster Who Thinks Trump Is Ahead

The polling aggregator on the website RealClearPolitics shows the margin in polls led by Joe Biden in a blue font and the ones led by Donald Trump in red. For a while, the battleground states have tended to be uniformly blue, except for polls conducted by the Trafalgar Group. If you are a firm believer only in ... Read More

The Pollster Who Thinks Trump Is Ahead

The polling aggregator on the website RealClearPolitics shows the margin in polls led by Joe Biden in a blue font and the ones led by Donald Trump in red. For a while, the battleground states have tended to be uniformly blue, except for polls conducted by the Trafalgar Group. If you are a firm believer only in ... Read More