I know some say for-profit and non-profit are the same, but one big difference is that state colleges and universities turn away many if not most applicants based on grades. This keeps the over all level of the students graduation up as well as better chance of jobs, salary etc. If you qualify for a loan at EDMC this never happens. Could they ever survive by applying the same standards as non-profits? Seems to me this will never change which means neither will the default rate and poor job placement.
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"The rule of thumb from financial advisers is never go to a school and pay for a degree that is going to cost more then what you would make in the first year." First year? Basing the value on the lowest level entry position? That's crazy.
If EDMC or the Art Institutes were more of a trade school then it would be work to not be focused on high grades. Trade schools teach usable skills not fantasy dream job degrees. What they really need to do is cut the price to about 1/3rd of what it is now. That is what would make it a worth while degree. The rule of thumb from financial advisers is never go to a school and pay for a degree that is going to cost more then what you would make in the first year. Not that you would pay it off in a year, but it would be manageable. 3 times that is just crazy.
That policy isn't the problem. It's the cost. In theory the EDMC schools are designed to help out the non-traditional student, the working student. And that's fine - but 50k for an AA and 100k for a BA? And to pay off that loan with a $10 an hour PT job? I've taught in universities. There are loser students everywhere. And great students everywhere. But a loser student at a community college doesn't incur any debt. You'll never get away from a business model at a for profit (And yes, we know that ALL schools are businesses) but what I'd like management to understand is that embracing people who don't fit into school at this point in their lives actually turns off the potentially great, profitable student who drops out and complains about dumbed down curriculum and low performance in the classroom. I've taught and managed at all levels here. You CAN get a great education. But talk to the grads at the grad show. They basically are working for the next 15 years hand to mouth to pay down a debt that ends up restricting their opportunities. Look - I have a good friend who came over from the Philippines. She is a good worker, smart, but under educated. She made it through with an AA in culinary. She flunked Algebra, took it again, did poorly in a couple of her courses but ended up top of her class in Baking and Pastry. She is working for $10 an hour PT, getting some experience, always looking for that break into a FT job. She is underpaid for what she does. She got out with 25k in debt because her husband helped out. But that 25k in debt was almost $400 a month each month. She makes $800 a month. Do the math. Traditional schools will soon offer for pennies what EDMC offers for big bucks. It's already happening. So in the end, if someone is paying for your education, then yeah, go here, work heard, you'll do well. The faculty are good overall and the curriculum is good especially when you get to the upper levels. But if you are some poorly educated dreamer who thinks they want to open a photo studio? Take some night courses at a CC, try and do it without debt. I did. I worked FT all the way through CC and BA, then took out a 30k loan for my MFA. Took 15 years to pay off. But to get back to the point: In my opinion and experience it's not good business for EDMC to allow poor students to continue. It's a fast Sachs buck. It might make investors happy for a while. But long term the best bet is to run this place like a school, not like a degree factory.
No, just look at their policy on failing grades. I saw a student get strait "F"s in all classes in one term and still returned for several more seasons. AI policy allowed this. That would get you kicked out of a regular college. EDMC wants the government loan money even if the student is failing.
I have heard professors talk about this, but that's all it is, talk. The people in charge make all sorts of excuses not to turn anyone away. Usually they just ask the student for an extra step like writing a letter why they want to attend. There is no screening process once it's been determined they qualify for student loans.