Ed463824 - For-Profit Higher Education and Community Colleges

This report addresses contemporary concerns about the competitive threat from for-profit educational institutions, contrasts national data on for-profits with national data on private non-profit and public post-secondary institutions, and examines case study data comparing a for-profit chain with three public community colleges located near branches of the chain. A 2001 report by the Education Commission of the States (ECS) points out that there was a 78% growth in the number of for-profit degree-granting institutions between 1989 and 1999; in the same period there was a 266% growth in the number of for-profit four year institutions. This paper reports that for-profits accounted for 4% of all students who enrolled in two-year colleges, yet they accounted for 9% of associates degrees granted. For-profit institutions tend to have a limited range of course offerings that have a strong link to students’ skill and career aspirations. Community college leaders and staff do not perceive for-profits as a competitive threat. However, community colleges might learn from the for-profits’ emphasis on customer service, employment placement support, and degree completion rates. (Contains 39 references and eight tables.).