For-Profit colleges and universities have recently been hit by a relatively low and declining level of enrollment and tuition, when compared to state-run or private colleges and universities. This is new for these schools. But why exactly is it happening?
The huge decline in tuition numbers is causing these for-profit schools to cut tuition fees, offer more scholarships, and has even caused some schools to shut down completely. These organizations say that they are simply reacting to the law of supply & demand. Others are quick to point out that these cuts are coming at a time when for-profit universities are facing tougher state and federal regulations. Regulations aimed at curbing unscrupulous recruiting practices, among other things.
The main reason for declining tuition rates is due to the public’s general awareness of the faults of for-profit education. More people are now aware of the false promises made, the unscrupulous recruiting efforts, and even more importantly, the severely declining value of a degree from an online, for-profit college. For-profit colleges are now even being closely watched by the US Department of Justice (who has sued several for-profit education companies due to claims of fraud). The vast number of scams portrayed by these schools is one of the main reasons tuition is continuing to decline.