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For Whose Profit?

VU International News and Reviews No. 110 April 9 2018

April 2018

The Century Foundation, a progressive non-partisan think-tank based in New York and Washington, has analysed the how well public, non-profit, and for-profit Higher Education institutions in New York perform in terms of employment outcomes and financial burden for the students as well as how much of the tuition money is actually spent on education.

Their report “Grading New York’s Colleges” shows that the for-profit institutions – which attract many more of the underprivileged students – do much more poorly on all three accounts than both public and non-profit private institutions.

The majority of students at 38% of the for-profit institutions have no wage benefit from their tuition: they still earn less than the average worker with no more than high school.

Over 12 years, students at for-profit schools default at more than four times the rate of those at public and nonprofit colleges in New York.

And while 78 per cent of nonprofit schools spend at least half of tuition revenue on student instruction, only 29 per cent of for-profit schools do so.

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