How Companies Profit Off Education at Nonprofit Schools - DEREK NEWTON, the Atlantic

In this marketplace, various reports suggest that students studying online at public and non-profit colleges give an average of about half of their tuition to for-profit companies known as online program managers (OPMs)—companies that design, run, and market the virtual programs for colleges. Because an online bachelor’s degree can easily cost $60,000, those for-profit companies, by taking 50 percent of student tuition, can make as much as $30,000 per student per awarded degree. And it’s often more. According to John Katzman, who founded one of the most successful OPMs, a 50 percent cut of online tuition money is just the average. “There are companies literally taking 80 percent or more of tuition,” contended Katzman, who disagrees with the practice of tuition-sharing. http://www.theatlantic.com/education/archive/2016/06/for-profit-companies-nonprofit-colleges/485930/