Study Says For-Profit Universities Disproportionately Target Black Students And Saddle Them With Debt

A new report has confirmed and given context to the negative impacts that the tactics for-profit universities use can have on those who attend them and the disproportionate impact on Black students. These schools have contributed to the student debt problem many Black students face, and changes to affirmative action may leave them more vulnerable to predatory school practices.

‘Predatory recruitment tactics’ and higher debt levels of for-profit colleges

The Institute for College Access & Success’s report, “Understanding Black Students’ Experiences and Outcomes at For-Profit Colleges to Inform State Oversight,” states, “There is also a long-documented history of certain for-profit colleges using predatory recruitment tactics to enroll students in programs that deliver substandard outcomes and leave them struggling under mountains of debt.”

The report notes, “To maximize their access to federal financial aid dollars, some predatory for-profit colleges have employed a range of unscrupulous practices — such as misrepresenting program costs and overinflating future job prospects — to pressure students to enroll.”

The impact of such practices is that “on average, students who attend for-profit institutions take on higher levels of student loan debt and are more likely to default on that debt than their peers who attend public and private nonprofit colleges.”

The study also highlights “The negative outcomes associated with many for-profit colleges are of particular concern for Black students, who are disproportionately overenrolled at for-profit colleges at both the undergraduate and graduate levels and have faced targeted recruitment efforts.”

Students share regrets as statistics show debt disparities

The study draws upon both qualitative and quantitative research to examine the tactics for-profit universities use toward Black students and the impact of attending these universities. The researchers conducted two focus group discussions of Black students, one featuring six people who had attended for-profit universities as undergraduates and the other featuring six who had attended such institutions as graduate students. Of the dozen total students, all of the graduate students and four of the six undergraduates indicated that, looking back, they wouldn’t choose to attend the same school if given the chance to make a different choice. The report also draws upon data to show that undergraduate students in general who attend for-profit universities accumulate higher average amounts of debt compared to public or private nonprofit universities, and this higher level of debt is even greater for Black students at for-profit schools. The picture is more mixed for graduate students, who tend to accumulate the most debt at private nonprofit universities. Looking only at schools with majority-Black student enrollment, for-profit institutions left Black students, both undergraduates and graduates, with significantly worse debt-to-income ratios compared to other schools. Within the focus groups, one graduate student accused for-profit institutions of “preying on minority communities who are trying to better themselves and gaining profit from that without offering something in return that is beneficial. But at the same time, it’s not the same thing as if you had gone to a not-for-profit university.”

Growing criticisms of for-profit colleges and universities

The results of the focus group discussions and the statistical comparisons are important given that Black students are significantly more likely to be enrolled at private for-profit schools rather than public or private not-for-profit universities. The results also add to the evidence that for-profit schools are harmful to Black enrollees. As The EDU Ledger noted, a different study showed that Black students at for-profit schools were twice as likely to experience discrimination as Black students at public colleges. Even though for-profit schools have these disproportionately negative impacts on Black students, these schools have targeted and attracted Black students who may have otherwise attended other types of institutions, such as HBCUs or community colleges. And as the new report predicts, the issues with for-profit colleges are poised to be exacerbated, as the Supreme Court’s decision to ban affirmative action in college admissions will likely lead to more Black students enrolling in for-profit schools.

Overall, the TICAS report highlights the voices of Black students who largely regret their choices of for-profit universities while also quantifying the impact of attending such schools. As circumstances, including the Supreme Court’s ruling against affirmative action, narrow the paths available for Black prospective college and university students, the predatory tactics of for-profit schools may leave more Black students with negative experiences and greater debt.

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