A $30 Billion Predatory Industry

For decades, the predatory for-profit college industry has exploited the promise of higher education. The industry specifically targets low-income students, people of color, single parents, and veterans with lies and false promises of well-paying jobs and meaningful careers. 

Instead of providing the quality programs promised, these companies invest almost no money into meaningful career training. In one study, less than 25% of for-profit colleges’ revenue went to expenses related to education. The majority went to marketing and advertising, executive compensation, and shareholder profit.

As a result, students are left with mountains of debt and without the means to pay for it. For-profit colleges account for 13% of the student population, but 33% of federal loan defaults.

Government funding and policies intended to help people improve their lives are instead enabling this industry to cheat students. For-profit colleges are among the most heavily tax subsidized of any private sector, taking more than $30 billion in taxpayer money each year in the form of federal student aid.

The Department of Education has the power and authority to stop the flow of federal money to these schools, but it has not. The industry and the interests it serves are powerful, and gets its way in Washington.

The Project’s landmark cases expose these broken systems, enforce students’ rights, and will ultimately prevent this predatory industry from cheating students and taxpayers.