Screw U: A Random Walk Through The Diploma Mill
Despite only accounting for 13 percent of post-secondary students, for-profit colleges account for 50 percent of defaulted student loan debt. In 2012, Senator Tom Harkin called the for-profit education an industry "…ripe for, begging for, regulation" and after reading our research we think you will agree.
The core reason behind the amount of default is because this industry manipulates and deceives the most vulnerable Americans: the bottom quintile of income earners. To exacerbate this problem, the average for-profit tuition is anywhere from four to six times more expensive than that of comparable non-profit university. On average, the majority of these students never even come close to graduating, most of them do not make it past the first four months. The University of Phoenix, the flagship university of this industry, has close to a 95% drop-out rate in their online program (The largest program in the world).
Following this research paper, we will soon post our financial models illustrating out stress test on increased regulation and free community college. Stay-tuned, and thank you for reading our coverage.
Disclosure: We are short APOL and ESI; potentially, we could pair trade against LOPE.
$APOL $ESI $UTI $STRA $COCO $EDMC
My Follow Up Analysis
The core reason behind the amount of default is because this industry manipulates and deceives the most vulnerable Americans: the bottom quintile of income earners. To exacerbate this problem, the average for-profit tuition is anywhere from four to six times more expensive than that of comparable non-profit university. On average, the majority of these students never even come close to graduating, most of them do not make it past the first four months. The University of Phoenix, the flagship university of this industry, has close to a 95% drop-out rate in their online program (The largest program in the world).
Following this research paper, we will soon post our financial models illustrating out stress test on increased regulation and free community college. Stay-tuned, and thank you for reading our coverage.
Disclosure: We are short APOL and ESI; potentially, we could pair trade against LOPE.
$APOL $ESI $UTI $STRA $COCO $EDMC
My Follow Up Analysis
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