The Low Return on Aid at For-Profit Colleges

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For-profit colleges in the US receive almost a quarter of federal higher-ed aid money, although they enroll only 9% of American college students and graduate fewer still: just 5% of bachelor’s degrees. And graduates from for-profit colleges default on their federal loans in huge numbers: 43% of all defaults in 2008. Tax-payers might ask what America is getting for their money. The answer: 16% to 37% profits at the same underperforming, predatory schools.
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