During my career in higher education, I’ve heard politicians and policy makers say that colleges and universities should be run more like businesses.  They would be more efficient and provide a better product for students and parents.  Articles have been written supporting this proposition as well. 

Everyone must be careful, however, in dealing with for profit colleges and universities whose mission is not education.  Their objective is to make money and provide a good return for investors.  This contrasts with the service mission of traditional colleges and universities to provide educational opportunities for their students.  This fundamental difference in mission must be taken into account when deciding where to invest your money for a college education.

“When Student Loans Outlive Failed Schools” describes what can happen when the profit motive becomes too important.  ITT Educational Services is a large for profit educational system with a presence in 39 states operating 128 campuses.  The company has not maintained the standards required to keep their accreditation from the Accrediting Council for Independent Colleges and Schools which means they can no longer receive funds from federal school loan programs.  The federal government has demanded $44 million from ITT to cover refunds to students who will not get the educations paid for if the company goes out of business.  ITT has stated that if they lose accreditation this is exactly what will happen leaving students to shoulder the burden of paying off school loans which average $24,000 per student.

All for profit colleges and universities are not like ITT but they all have profit not education as their primary objective.  Do your homework before choosing one of these schools to ensure you get the education you paid for.