Predatory Practices in Higher Education

Abstract

At the core of ethics is training and education. If we are to expect our college graduates to behave ethically once they enter the workforce, then the institutions that educate and train them need to adhere to the same principles. American universities have come under close scrutiny due to their rising tuition costs. From 1980 to 2011, college tuition increased by 244% (Mettler, 2014), which has made college education out of reach for most Americans. Public universities have increased tuition and fees in response to decreased funding by state legislatures. In addition, the percentage of tenured and tenure-track faculty has decreased from 40% to 25%, while administrative positions have increased by 221%. However, the more egregious behavior has been that of private, for-profit institutions that engage in predatory practices. This article focuses on the unethical behavior of these institutions.According to a recent article in The New York Times, the practices of for-profit institutions of higher education include fraud, illegal activity, and bankruptcy (Cohen, 2015). More specifically, these have included incentive payments to recruiters and deceptive enrollment practices. Not only do these institutions charge higher tuitions than public universities, but they also target low-income students and veterans. Moreover, they have the highest default rates and the lowest graduation rates when compared to private, nonprofit, and public institutions (Naylor, Wyatt-Nichol, & Brown, 2015).According to the Association of Private Sector Colleges and Universities (2012, 2013), forprofit universities enroll over 4 million students annually, or 12% of the U.S. college population. On average, for-profits charge $15,000 in tuition for full-time students, compared to $8,655 for public four-year colleges, and $3,131 for community colleges (College Board, 2013). In sum, the for-profits charge twice as much for tuition as public universities. This is significant because it increases the debt load for students. In terms of for-profit student bodies, 46% are either African American or Hispanic. In addition, 51% are first-generation college students, and the majority are low-income. Eighty-six percent of students receive need-based financial aid, 63% receive Pell Grants, and 53% have annual incomes less than $30,000. As Correspondence should be sent to Lorenda A