An Associated Press report last month found that the five schools receiving the biggest chunk of federal aid aimed at poor students all were for-profit colleges. This should cause Congress to rethink the rules of the Pell Grant program.
The AP reported the amount of Pell Grant money going to for-profit colleges is skyrocketing — doubling in the last decade to $4.3 billion and representing about a quarter of all Pell Grant money.
There are a wide range of for-profit colleges. Perhaps the best known is the enormous University of Phoenix, which offers classroom and online instruction all across the country.
But also in this category are smaller career and trade schools. They market themselves aggressively as a route for people to earn their way to better jobs.
For-profit schools, which tailor their instruction to people juggling full-time jobs and family obligations, are a good fit for some students. In fact, some for-profit schools have pioneered new approaches to teaching (especially online) that traditional colleges could learn from.
For-profit schools also argue that they’re needed if this country is serious about achieving President Barack Obama’s goal that everyone get at least some college-level training. Traditional colleges just don’t have enough space if everyone were to enroll at once.
Still, the vast majority of those seeking college-level programs would be better off at a traditional school. At their worst, some for-profits are scams designed to grab cash while providing little of value.
But even compared to the average legitimate for-profit college, a traditional public or private school is usually a better bet.
Something is needed to ensure tax dollars go to programs that make a difference. Unfortunately, the Pell Grant program doesn’t do enough to ensure the money it offers is spent at institutions — traditional or for-profit — with track records of success. Congress might consider following Ohio’s lead by working to strengthen the system for awarding financial aid.
Ohio is in the process of building performance measures into student aid. For students to keep receiving grants, they’ll have to show progress. The more they move toward a degree, the more aid they can receive.
The Pell Grant program also has some performance measures for students. What it needs to do is create incentives for all colleges to focus on student success by rewarding those that can demonstrate they are making a difference on quality measures like course completion and graduation.
It wouldn’t even be a bad idea if the program considered whether a school’s students had manageable debt levels compared to other schools. Some schools allow their students to load up on crushing debt before they finish their degrees.
Spending on Pell Grants was dramatically raised last year with the goal of making college more affordable for needy students. The AP reported the amount paid to for-profits in the first quarter of this year jumped by 67 percent over last year.
At the same time, the median graduation rate for for-profits is just 38 percent.
Washington shouldn’t be subsidizing substandard college programs. Adding a few performance measures to the Pell Grants would help focus the money on schools that are in business to seriously benefit students.
— Cox News Service