XplanaZine

With an increasingly competitive job market in the U.S. an augmented value is being placed on higher education. And for many who cannot afford the time or money for traditional not-for-profit public or private universities, the alternative of a for-profit university degree or certificate is becoming progressively more desirable.

According to a Boston College study, “for-profits [in the United States] fall into three broad categories: (1) less than a dozen large, publicly traded institutions with top-line operating revenues in excess of $100 million (e.g., Apollo Group, Career Education Corporation, Education Management Corporation, Corinthian Colleges, Inc., and Kaplan Colleges, Inc.); (2) approximately 20 privately held institutions with revenues between $50 million and $100 million large enough to entertain the possibility of going public at some time; and (3) firms operating at less than $50 million a year. The vast majority of the approximately 4,000 for-profits fall into this category.” Full-time employees interested in obtaining a college degree or higher are benefiting from the up-and-coming non-profit universities such as the University of Phoenix, Corinthian College or Kaplan Colleges. Because the market of working professionals striving to keep up with their colleagues is heavily saturated, enrollment in for-profit universities is on the rise.

The University of Phoenix has seen a 70 percent enrollment increase in the last 5 years. And according to Todd S. Nelson, CEO of Apollo (parent company of the University of Phoenix), “…over the next 10 years, our plan is to have a physical campus not only in every state in the U.S. but also in every major metropolitan area.”

In April online enrollment at the University of Phoenix was at 91,000 students when Nelson predicted that “…in the next few months, our online program will pass up our on-ground campuses [in terms of numbers of students].”

What’s the Appeal?
Their appeal lies in their two-year degree programs as well as their emphasis on the ability to land a job immediately after receiving a degree. Some classes only run 5-6 weeks and are held in the evening, catering to students with full time jobs. These courses also make it convenient for members of the U.S. military to get a degree.

How Will This Affect Not-for-Profit Universities?
With for-profit enrollment smooth-sailing at a predicted 25 percent each year, it seems as though not-for-profits are bound to take some sort of hit. Between 1990 and 2000, the number of for-profit universities reached 750. There are currently thousands of not-for-profit colleges and universities in the U.S. and only 200 of those went out of business between 1990 and 2000. Although this is a small decrease, this competitive pressure to survive will only increase as the demand for degree and time flexibility mount.

Why For-Profits Will Continue to Succeed
Why wouldn’t the average person want to get a degree in two years? Receiving a master’s degree at 22 or while you’re in the military isn’t so implausible and will most likely be common in the next 5 years. When people consider getting a degree, they should probably heed the University of Phoenix’s advice not to “…put it off any longer. The sooner you earn your degree, the sooner you’ll have the knowledge, skills and credentials you need to excel in your field.”

The race for a degree has begun.