Monday, October 20, 2014

Wolf in Sheep’s Clothing

Lawrence Besong
Professor Christopher Werry
RWS 100
20 October 2014
Wolf in Sheep’s Clothing
            Many people may have heard the popular idiom, “A wolf in sheep’s clothing.”  The meaning of this idiom is a person or thing that disguises its evil nature or intentions beneath a kind or innocent exterior.  For-profit colleges can be compared to wolves in sheep’s clothing.  For-profit schools are owned by private organizations or corporations, and tend to operate in such a way.  Beneath their promises of a quality education remain deception, dishonesty, and defeat.  In “Why Do You Think They’re Called For-Profit Colleges?,” a 2010 commentary published in The Chronicle of Higher Education, Kevin Carey claims that problems and abuses exist in the for-profit sector, and these institutions are refusing to accept responsibility for them.  For-profit colleges have been becoming more prevalent across the United States, with the popularity of schools such as the University of Phoenix.  These schools market themselves to students from a “moderate- and low-income backgrounds” (Carey).  Knowing the population of their students, for-profits still typically charge a higher tuition than public colleges and universities.  In order for these students to attend and pay their tuition, they are encouraged to take out student loans.  Operators of these colleges refuse to see acknowledge that their high tuition results in student loan defaults.  For-profits receive enormous amounts of money, “most of that money comes from the federal government, in the form of Pell Grants and subsidized loans” (Carey). Upon graduating from a for-profit college, students are having difficulty paying back their loans, because “large debt plus small income equals high risk of default” (Carey).  Although the article discusses negative aspects of for-profit colleges, he does mention some positive qualities that these colleges may have when compared to public non-profit higher education schools.  I feel that these positive qualities are only mentioned in order to mask the true nature of these for-profit schools.  In my analysis of Carey’s text, I will examine the deceit and dishonesty of for-profit colleges and the negative effects that the students and graduates of these establishments endure.
            For-profit colleges market their brand to appeal to students from low- to moderate-income backgrounds.  Running just as a business would, these colleges market themselves in order to gain the most profit.  “For-profits exist in large part to fix educational market failures left by traditional institutions, and they profit by serving students that public and private nonprofit institutions too often ignore” (Carey).  The author is saying that for-profit colleges provide an education to the under-privileged, giving them the opportunity to obtain a higher education.  The University of Phoenix strategically builds their campuses near freeway exits.  This appealed to students who attended night classes and had to quickly get to school after a day of working.  Online courses allow students to stay home and earn a degree at the same time.  Students can work and complete their schoolwork at their own convenience.  Students with families or children can stay home while learning, without the need of hiring a babysitter or nanny.  Carey is explaining the appeal that for-profit colleges have to the under-privileged, while Deming, Golding and Katz provide a more in-depth analysis at what attracts these types of students to these schools.  “For-Profit Colleges” describes the majority of the students enrolled in for-profit schools.  “During the past fifteen years, youth from minority and disadvantaged background and those ill-prepared for college increasingly and disproportionately have enrolled in programs at for-profit colleges.  These programs promise much, are often open to those who do not meet traditional college-entry requirements” (Deming, Goldin and Katz 138).  Many career-based programs are offered and can be completed in a shorter period of time compared to traditional nonprofit colleges.  Certifications and degrees seem easily attainable by the way they are marketed to those interested in entering a specific career.  “Many for-profit colleges devote considerable resources to advertising, sales, and marketing” (Deming, Goldin and Katz 149).  For-profit colleges set aside money from their earnings in order to advertise their schools and programs in order to increase student enrollment.  These ads include: billboards, television and radio commercials, and posters on public transportation.  The deliberate placing of these ads can help attract students with a lower income, providing them with the optimism of gaining a postsecondary education.  “When such institutional incentives are combined with outreach to low-income, first-generation college students who may be financially unsophisticated, the worry is that students may have overly optimistic views of the expected benefits and not fully understand the costs of the educational decisions they are making” (Deming, Goldin and Katz 149).  Relying on the inexperience and hopefulness of this group of people, for-profit colleges are able to influence their decisions to enroll.  Upon graduating, these students are often left with a great amount of debt and low-paying jobs.  Just as Carey pointed out that for-profit schools appeal to people with the moderate- to low-income backgrounds, Deming, Golding and Katz brought insight as to why they do so.  Businesses market themselves to appeal to those who can be easily persuaded.  Like candy advertisements are geared toward children, the promise of a quick certification or degree appeals to those who are in desperate need of money and a job.  Although it may seem like a good decision on the surface, graduates from for-profits have been shown to have a higher rate of unemployment and have lower paying jobs, on top of their greater amount of debt.
            For-profit colleges gain a significant amount of their profit through the federal government.  As Carey pointed out, they get their money from Pell Grants and subsidized loans, which are both student financial aids that help low-income students obtain a post-secondary education.  Due to the fact that this is how they make their revenue, for-profit schools will do anything to “help” their students obtain these loans, including fraudulent behavior.  The introduction of “Reining in the Predatory Nature of For-Profit Colleges” tells the story of a fourteen-year-old boy named Bobby Ruffin Jr.  He was searching the Internet for college funding.  He clicked on a link, which was disguised, that led to a for-profit school.  Soon after, a recruiter from Ashford University contacted Ruffin.  This recruiter promised Ruffin that he would “be working toward a degree as a medical doctor, so when [he does] graduate high school, [he will be] almost there” (Schade 318).  The recruiter advised Ruffin not to even discuss the matter with his parents.  The naïve high school student did as he was told.  Ashford University requires a high school diploma for admission, and Ruffin was still only in eighth grade.  The Ashford recruiter told Ruffin to state that he already graduated on his financial aid forms.  Even though he left it blank, Ashford University filled in the form with a false graduation date in order receive the federal student loan money. By retelling this story, Schade shows how the recruiter manipulated a young boy and forged federal government forms in order to receive money for revenue.  Unfortunately, behavior like this is common within the for-profit sector.  “Critics of for-profit colleges, who often refer to such institutions as “predatory lender,” condemn them for unethical recruiting tactics, false promises of high-salary jobs, inaccurately representing institutional information, and charging vastly higher tuition in comparison to public universities” (Schade 321).  Lying and deceit seems to be morally acceptable to these institutions, just as long as they make a profit.  Although they will not admit that is what they are doing, essentially they are committing fraud.  Schade provided a great example of the dishonest behavior of the for-profit colleges that leads to the ability to gain profit from the federal government, through Pell Grants and subsidized loans.
            Statistics show that graduates from a for-profit college, compared to those from a four-year public institution, have a higher rate of unemployment, have lower-paying jobs, are hired less often, and have a large amount of debt.  Carey states that “student-debt payments after graduation exceed a certain percentage of the graduates’ income” (Carey) and that these graduates are more likely to default on their loan.  That is just one negative aspect of graduating from a for-profit college.  “Graduates of for-profit schools generally do not fare well.  Indeed, they rarely find themselves in the kind of work they were promised when they enrolled, the kind of work that might enable them to repay their debts, let alone purchase the commodity-cornerstones of the American dream like a car or a home” (Taylor and Appel).  For-profit colleges claim provide quick and career-based programs that will help its graduates find employment soon after completion.  More often than not, theses students find themselves struggling to find a job, while paying off their student loans and debt.  In the example of Nathan Hornes, who graduated from Everest College in 2014, one can see that a 3.9 GPA and a Business Management degree has not proved to beneficial to him.  Not only does he owe $65,000, but he was not able to find employment, which was promised to him by Everest.  Now he is forced to work two fast-food jobs in order to begin to pay off his debt.  “For-profit graduates fare little better on the job market than job seekers with high school degrees; their diplomas, that is, are a net loss, offering essentially the same grim job prospects as if they had never gone to college, plus a lifetime debt sentence” (Taylor and Appel).  Employers almost equate a high school diploma to a degree from a for-profit college.  This kind of comparison makes it difficult for for-profit graduates to compete for higher-paying jobs, finding themselves in competition with high school graduates.  Yet, they are still left with twice as much debt as a graduate from a traditional school.
            For-profit schools target low-income customers, manipulate them for their own gain, and making promises that they cannot keep.  All of these behaviors lead to low-value degrees, unemployment, low-paying jobs and an extraordinary amount of debt.  These businesses care more about maximizing profit than providing an exceptional education to its students.  Schools are meant to educate, providing the student with the knowledge and tools to succeed.  In the case of for-profit colleges, they take from its students more than they provide.  They achieve this in a deceitful way, just like a wolf in sheep’s clothing.
              
           




Works Cited
Carey, Kevin. "Why Do You Think They're Called For-Profit Colleges?" The Chronicle of Higher Education. The Chronicle of Higher Education, 25 July 2010. Web. 14 Oct. 2014.
Deming, David, Claudia Goldin, and Lawrence Katz. “For-Profit Colleges.” The Future of Children 23.1 (2013): 137-163. Harvard University. 2013. Web. 14 Oct. 2014.
Schade, Sarah A. “Reining in the Predatory Nature of For-Profit Colleges.” Arizona Law Review 56:317 (n.d.): 317-340. Arizona Law Review. Web. 14 Oct. 2014.
Taylor, Astra and Hannah Appel. “Subprime Students: For-profit Universities Make a Killing from Poor and Minority Students.” Mother Jones. Mother Jones, 23 Sept. 2014. Web. 14 Oct. 2014.

“Wolf in sheep’s clothing.” Def. 14.  Dictionary.com, Dictionary.com, n.d. Web.  18 Oct. 2014.

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