cash cow - a product, business unit, or consumer that generates unusually high profits, enough to keep less profitable aspects of the business afloat
www.economix.blogs.nytimes.com
revenue - the income of a government from taxation, excise duties, customs, or other sources, appropriated to the payment of the public expenses
www.dictionary.com
for-profit higher education - educational institutions that are run by private, profit-seeking companies or organizations
www.wikipedia.org
Colleges and universities charge some students more than others and that's where financial aid comes in to play. The growth of for-profit higher education to raise more money of their own revenue is increasing the competition for those students who will pay the most money up front. Those schools that want more money are actually hurting themselves because the enrollment rate is high, but the completion rate is decreasing. Some students are not graduating and getting their college degrees. In the school year of 2000-2001 less than 60% of first-time full-time students pursuing a bachelor's degree at a four-year school completed that goal within six years. Some schools try to mock the for-profit model and marketing campaigns are aiming to mostly out-of-state students who pay more for tuition. This process has a lot of problems because administrators can focus on the wrong things like a fancy brochure cover with a picture of a new recreation center instead of improving the well being of the students. Also, a lot of students do not have enough money to pay for out of state tuition so their enrollment goes down. Another flaw is that more students might be accepted, but there are not enough faculty and staff members, so the students receive less individual attention if needed.
* I think the for-profit model will fail more than it will succeed because in reality no one can really afford to pay for college. The cost of college tuition is not even decent for those who live in the same state they are attending school at. I can only imagine what it's like for those who are out of state students. Colleges and universities charge an arm and a leg for tuition and most students don't go to school out of state unless they have a scholarship.
http://economix.blogs.nytimes.com/2010/02/15/college-students-the-new-cash-cows/
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Since students' educational opportunities are being limited due to the fact that some schools are raising tuition and other fees, what suggestions would you offer students who want to go to out of states schools, in terms of budgeting, savings and trade-offs?
ReplyDeleteThere was a really interesting article in the Wall Street Journal about for profit schools. In the article, they say that students who pay for their education at for profit institutions are more likely to default on their loans. This is because the universities are looking for "customers" and not qualified students. The "customers" seem to get less benefit than other students who were chosen selectively at non-profit schools, and therefore do not end up earning the money they need to repay the government.
ReplyDeleteThat was Ms. Spengeman, by the way...
ReplyDeletewhat are some other solutions in your opinion that schools can do to increase their graduation rate but now lower the tution so much? are their a lot of students' there on financial aid ?
ReplyDeleteThis is a huge problem that we see in our community often. I agree that qualified students are unable to attend out-of-state universities because of financial hardships which are caused by the high tuition. Would schools be greatly affected if they lowered their tuition cost? I would benefit many people who have a dream to go away to school and would present them with opportunities that otherwise they wouldn't have.
ReplyDeleteTaylor, I would suggest that students focus on school and getting good grades so they can qualify for numerous scholarships. Also, depending on their situation they can become a member of the Equal Opportunity Program (EOP). If it's necessary the students could get grants and student loans. They should also consider starting a savings account.
ReplyDeleteMs. Spengeman, that's interesting.
ReplyDeleteMani, I think there shouldn't be as many students with financial aid and the schools should provide more opportunities to help the students and make sure they really grasduate.
ReplyDeleteAujenee, I think it could go either way. If schools lower the tuition fee then more students might apply and actually go because it's affordable. On the other hand this could affect the schools in a negative way because the enrollment rate might stay the same.
ReplyDelete