When it comes to reforming Big College, give the federal government a C+. Throughout 2010, grade grubbers in Congress, the White House, the Department of Education, and the Government Accountability Office (GAO) worked hard to investigate and regulate the booming for-profit college sector. Among other sins, they accused the schools of predatory recruiting practices, inflating grades to keep students eligible for federal aid, and charging too much for degrees that ultimately have little value in the workplace.
Given that the approximately 2,000 for-profit colleges in the U.S. rely on federal aid for a huge portion of their revenues, such scrutiny is clearly warranted. Still, the $25 billion in federal grants and loans that flows to them each year represents just a fraction of the $113.3 billion the government made available to higher education as a whole in 2009-10. And not all of the $89 billion or so that non-profit institutions collected in federal aid went toward teaching the nation’s youth such career-enhancing skills as how to deconstruct soap operas from a Marxist perspective.