From today's issue:
We'd prefer no taxpayer loan subsidies for any colleges, profit or nonprofit, but the Obama Administration's policy has heretofore been to increase subsidies so that college education becomes a de facto entitlement. At least for-profits repay those subsidies with income tax payments.
The Apollo Group, the parent company of the University of Phoenix, paid $445 million in income taxes last year. "That's $445 million in income taxes more than every nonprofit college in America combined," reports Forbes magazine. "The notion that it's mainly the for-profits that are a giant drain on taxpayer resources is ludicrous."
If the concern is that career colleges are duping customers into taking on too much debt, then simpler application forms and greater transparency could be required with respect to costs, the amount being borrowed, future monthly payments and likely earnings in a given occupation. By contrast, Mr. Duncan's proposals are more likely to result in fewer good programs, not more student protections. For-profit schools are obviously filling a need, given that enrollment has tripled to around 1.8 million in the past decade, a rate that far outpaces nonprofit rivals.
It's hard not to conclude that the real driving political force here is hostility to private education companies. This is consistent with the Administration's decision to bar private companies from delivering student loans, its near-takeover of the health-care industry, and its denunciations of high business pay and profits. By punishing for-profit colleges, the Administration will push more students into their nonprofit competitors, which satisfies its preference for equality of outcomes and more government control.
No wonder the U.S. economy isn't creating jobs when anyone who makes money and creates more jobs immediately becomes a political target.The entire piece is worth a read if for no other reason than it tackles topics not included in the above selection. Be sure to Tweet or Facebook this if you agree.