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EVALUATING FOR-PROFIT SCHOOLS

Learn about the criteria for evaluating for-profit schools, including their purpose, accreditation, post-graduate job placement, graduation rates, average cost and debt per student, post-graduate earnings, and representations made by the school.

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EVALUATING FOR-PROFIT SCHOOLS

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  1. EVALUATING FOR-PROFIT SCHOOLS Peter C. Harvey Former New Jersey Attorney General Patterson Belknap Webb & Tyler LLP May 24 , 2016 8928759v1

  2. For-Profit Schools - Overview Association of Private Sector Colleges and Universities (APSCU) - Over 600 member schools - Colleges and Universities - Technical/Trade Schools • Pink Collar Administrative (Secretaries/Administrative Assistants) • Health Care (Nurses) • Culinary • Transportation (Truck Drivers) • Construction • Technology (Computer Diagnostics/Repair) • Trade (Plumbing/Electrical/Hair Styling) • Visual/Performance Arts (Acting/Dance)

  3. For-Profit Schools - Overview 2011 − 2012 EDUCATED/TRAINED - Over 855,562 Graduates Nationwide New Jersey • 93 Private Sector Colleges (Total Colleges: 165) • Students: 54,576 (Total College Students: 591,647) • Employees: 3,300 full-time New York • 140 Private Sector Colleges (Total Colleges: 461) • Students: 122,369 (Total College Students: 1,717,883) • Employees: 8,221 full-time

  4. For-Profit Schools’ Student DemographicsNew Jersey/New York

  5. SUGGESTED EVALUATION CRITERIA FOR COLLEGES Use same factors for non-profit and for-profit colleges • School Purpose and Student Demographics • Accreditation • Post-Graduate Job Placement • Job Availability in Sectors Advertised/Taught by School • Graduation Rates • Average Cost Per Student • Average Debt Per Student • Post-Graduate Earnings • Representations by School About Job Placement/Graduation Rate/Cost

  6. EXAMPLE: Hypothetical For-Profit College College Courses: College Accreditation: Middle States Commission on Higher Education Certificate Programs: • Practical Nurse Program – approved by State, Board of Nursing • Medical Assistant – accredited by Commission on Accreditation of Allied Health Education Programs • Surgical Technology Program – Accredited by Commission on Accreditation of Allied Health Education Programs • Online Education – Quality Standards Certification – United States Distance Learning Association (USDLA)

  7. EXAMPLE: Hypothetical For-Profit College (cont’d)

  8. Average Annual Cost of Tuition & Fees (2015-2016)

  9. EXAMPLE: Hypothetical For-Profit University (cont’d)

  10. Comparison – Four Year Non-Profit Colleges Random Sample of Graduation Rates – US Department of Education 2008-2011

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