The volume of federally guaranteed student loans to students at so-called proprietary colleges — the ones that intend to operate at a profit and get nearly all their revenue from the government — continues to grow. At the same time, state and local governments across the country are slashing spending on higher education, and community colleges are suffering some of the largest reductions. That trend has been welcome news to the proprietary colleges. “The competitive landscape” is getting better, Kevin M. Modany, the chief executive of ITT Educational Services, one of the larger for-profit colleges, told analysts this year. ITT Educational opened four new campuses in the first three months of this year, raising its total to 148 locations in 48 states. It expects to open at least four more later this year. It has 71,000 students enrolled. I got interested in ITT Tech after I watched one of its commercials, full of promise of bright career opportunities for students who sign up. At the end of the commercial, the following words flashed on the screen, in small type and for only a few seconds: “Credits earned are unlikely to transfer.”
http://www.nytimes.com/2012/05/25/business/us-subsidies-to-for-profit-colleges-keep-growing.html
