A for-profit college may convert to nonprofit status for a variety of reasons, such as wanting to align its status and mission. The Government Accountability Office (GAO) was asked to examine for-profit college conversions. This report reviews what is known about insider involvement in conversions and to what extent the Internal Revenue Service…

A for-profit college may convert to nonprofit status for a variety of reasons, such as wanting to align its status and mission. However, in some cases, former owners or other insiders could improperly benefit from the conversion, which is impermissible under the Internal Revenue Code and Higher Education Act of 1965, as amended. This…

Enrollment in for-profit colleges has grown from about 365,000 students to almost 1.8 million in the last several years. These colleges offer degrees and certifications in programs ranging from business administration to cosmetology. In 2009, students at for-profit colleges received more than $4 billion in Pell Grants and more than $20 billion in…

Once comprised of local, sole-proprietor ownership, the nation's for-profit institutions now range from small, privately owned schools to publicly traded corporations. Enrollment in such colleges has grown far faster than in traditional higher-education institutions. Moreover, during the 2009-2010 school year, for-profit colleges received almost…

Presented herein is a statement of George A. Scott, Director Education, Workforce, and Income Security. The author discusses the extent to which the Department of Education's policies and procedures for monitoring eligibility requirements for federal aid at proprietary schools protect students and the investment of Title IV funds. This testimony…

For-profit schools--also known as proprietary schools--received over $16 billion in federal loans, grants, and campus-based aid under Title IV of the Higher Education Act in 2007/08. The US Government Accountability Office (GAO) was asked to determine (1) how the student loan default profile of proprietary schools compares with that of other types…

To respond to Congress' interest in student outcomes at different types of schools, this report addresses the following questions: (1) What does research show about graduation rates, employment outcomes, student loan debts, and default rates for students at for-profit schools compared to those at nonprofit and public schools, taking differences in…

In the 2008-2009 school year, about 2,000 for-profit schools received almost $24 billion in grants and loans provided to students under federal student aid programs. In the early 1990s, Congress was concerned that some for-profit schools receiving federal student aid were recruiting students who were not ready for higher education. Many of these…