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Red Flags Over For-Profit Education

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Study: For-Profits Match Similar Nonprofits in Learning Results,” was the title of an article that ran in the January 11th issue of Inside Higher Education. The title is actually somewhat misleading because the third paragraph cites the study as claiming that “[i]n all six comparisons, students at proprietary institutions outperformed the students at the nonproprietary comparison institutions.”

Who would have thought that? I mean, really, aren’t the for-profits infamous for having poor learning outcomes? One doesn’t actually even have to look at the original study, however, to realize that something is fishy with it. First, it is described as measuring “learning outcomes in six areas for 624 students from four for-profit higher education systems, which the study does not name, and then compar[ing] the scores with those of a matched group of students from 20 unnamed public and private institutions that were selected because they were similar to the for-profits on key measures related to academic performance” (emphasis added).

The first red flag is the “matched group of students.” Matched in what sense? That isn’t explained.

The second red flag is that neither the traditional nonprofit institutions nor the for-profit ones are named.

The third red flag is that the nonprofit institutions were selected because they were “similar to the for-profits on key measures related to academic performance.” Really? Since for-profits are reputed to have abysmal results in terms of academic performance, they must have searched long and hard to find nonprofits that had similarly abysmal results, if indeed they really did find such institutions, which cannot be verified since they are “unnamed.”

The whole thing reminds me of an old television commercial for Rolaids. Someone dumps a white powder into a beaker of what appears to be water with red food coloring in it, then stirs the powder, which gradually becomes clear again, while a voiceover announces “In this test with Rolaids’ active ingredient, laboratory acid changes color to PROVE Rolaids consumes 47 times its weight in excess stomach acid.” There was no way to prove that the beaker had actually contained acid, or that what had been dumped into it was really Rolaids’ “active ingredient,” or indeed even that the change in color represented Rolaids’ “absorbing” anything let alone acid, not to mention how much acid.

Back to the education “study.” Even if the study is genuine, the results are pretty much useless because the whole study is circular. That is, the study admittedly sought out “matched” students at “similar” institutions. It thus isn’t surprising that the for-profits come out looking better than one would expect if the selection of students and institutions had been random.

The study was conducted by a group called the Council for Aid to Education, or CAE. The “Executive Summary” (p. 2) of the study makes it very clear where the CAE stand on the for-profits. “The proprietary education sector stands at a crossroads,” it begins.

“Proprietary colleges and universities are key providers of postsecondary education in the United States, enrolling over 1.7 million students. However, the sector has seen its enrollment decline since its peak in 2010 due to the growing employment opportunities following the Great Recession, the heavy regulatory burdens imposed during the last six years, and the perception that education at proprietary institutions is not on par with that offered by their non-proprietary peers.

“The Council for Aid to Education (CAE) believes this junction presents a critical time to explore the efficacy of proprietary institutions and to document the student learning they support.”

If there were doubt in anyone’s mind concerning the study’s objectivity, the opening of the “Executive Summary” should remove it. The CAE set out to show that the for-profits were doing as good a job of educating students as are traditional nonprofit institutions of higher education.

Of course the CAE is within its rights to do this. The problem is not so much the the CAE’s clear bias in favor of the “proprietary education sector,” but Inside Higher Education’s failure to expose that bias. Inside Higher Education purports to be “an independent journalism organization.” This “journalistic independence is critical,” IHE asserts in its “Ownership Statement,” “in ensuring fairness and thoroughness” of its “higher education coverage.”

The thing is, Quad Partners, “a private equity firm that invests in the education space,” purchased a controlling share of IHE in 2014. That is, Inside Higher Education is now an arm of the “proprietary education sector.” So the purported “independence,” “fairness,” and “thoroughness” of its reporting on issues in higher education appears now to be only so much more propaganda in the service of the for-profits.

That’s the real news in this article.

M.G. Piety teaches philosophy at Drexel University. She is the editor and translator of Soren Kierkegaard’s Repetition and Philosophical Crumbs. Her latest book is: Ways of Knowing: Kierkegaard’s Pluralist Epistemology. She can be reached at: mgpiety@drexel.edu 

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