Watch my video to refresh your knowledge of for-profit college companies! Then get a load of their newest business venture: charter schools!
A “little trouble” with the feds can’t stop for-profit college companies from continuing to feed at the public trough! Some of the biggest for-profit college chains have come under federal scrutiny recently. They did not fare well. Several have been told to cease operations for defrauding students. Others have been told to adhere to tougher student achievement standards in order to stay open. And still more are being monitored for their higher-than-usual student loan default rates.
So what would you expect of these huge companies whose business model is to enroll low income students in their colleges, just to gain access to federal education funding, like Pell grants and Student Loans? Would you expect them to just pack up their bags and leave quietly? Well…no.
Sure enough, just like Whack-a-Mole, they’re back with a business model that is not brand-new, but is just now ripe for the picking. How about charter schools? Yes, for-profit education companies have crept their way into the public school systems of many states. Their new name is Education Management Organization or EMO.
Sure, I know, we all think of charter schools as being run by well-meaning non-profit 501(c)(3) corporations. Charter schools are supposed to provide alternatives for students in poorly performing schools, courtesy the state and federal taxpayers.
The only trouble is that many of the non-profit corporations that were originally formed to run these charter schools started needing help with the day-to-day operations of the schools. The non-profits started hiring the EMO’s to run the schools. And while the duties started small at first, the EMO’s were later asked to take over just about everything, student education included!
Oh, and guess what? The for-profit EMO’s wanted to MAKE A PROFIT! Can you believe it? Just one little problem: taxpayers who thought they were providing additional school choice for students in failing schools, now find themselves supporting the bottom line of for-profit companies.
Looks like we’ll be needing some stronger oversight regulations pretty soon. What do you think?