THE PROFIT IN PROPRIETARY EDUCATION: AN EXPLORATORY EXAMINATION OF STUDENT LOAN RATES

Abstract

The needs of adult learners and the rising tuition at traditional colleges and universities has stimulated the emergence of for-profit higher education in the United States as a viable sector of postsecondary education (Morey, 2004). Previous literature have examined choice selection and compared traditional and nontraditional higher education curricula. This author’s research has found limited scholarly examination of the relationships between student loan defaults and revenue. This article will empirically analyze these factors to determine that there is a significant correlation of student default rates and revenues at proprietary institutions.

Key words: for-profit higher education; proprietary institutions; student loan default; postsecondary education; private-equity funds

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