CullmanTimes.com - Cullman, Alabama

Community News Network

November 21, 2012

For-profits losing to better-rated state schools charging less

(Continued)

"It's not an infinite market," Regier said. "A lot of our students would have gone to a for-profit. I don't know why students would go to for-profits once we get as good at customer service. Their brands are not as good, and they tend to be more expensive."

Apollo says its programs often cost less than private, not-for-profit colleges as well as state universities' non- resident tuition. Last month, the University of Phoenix announced it would freeze tuition for all currently enrolled students and prospects who sign up by June.

"We are tremendously competitive," said Mark Brenner, an Apollo senior vice president.

Apollo excels at helping job-hunting students, Brenner said. The University of Phoenix has established relationships with 2,000 corporations, including Verizon Communications, Wal-Mart Stores and Adobe Systems.

Those company ties haven't stopped the bleeding at Apollo. Enrollment at the University of Phoenix has plunged 30 percent to 328,400 students since August 2010. Apollo is shutting 115 locations, including 25 campuses, and eliminating 800 jobs over the next year.

Career Education, a college chain based in Schaumburg, Ill., is closing 23 campuses and cutting 900 jobs. Earlier this month, Strayer Education said it won't pay its $1-a-share quarterly dividend in 2013.

In September, Kaplan said it stopped enrolling students at nine campuses and is folding four others into nearby locations. This month, The Washington Post said it expects "to incur significant additional restructuring costs" in the fourth quarter and next year because of Kaplan.

— — —

The grim news is a far cry from 1995 through 2010, when enrollment at publicly traded for-profit companies rose about 14 percent a year, according to Peter Appert, an analyst at Piper Jaffray & Co. in San Francisco.

"In the old days, they would take anyone who was breathing," Appert said in a phone interview. If they dropped out after a semester or two, so what? You've collected your money."

Text Only
Community News Network
  • Why a see-through mouse is a big deal for scientists

    A group of Caltech researchers announced in Cell Thursday their success in making an entire organism transparent. Unfortunately, this isn't any kind of "Invisible Man" scenario: The organism in question is a mouse, and the mouse in question is quite dead.

    July 31, 2014

  • Screen Shot 2014-07-31 at 2.12.55 PM.png VIDEO: Five-year-old doesn't want her brother to grow up

    Sadie, an adorable 5-year-old from Phoenix, wants her brother to stay young forever, so much so that her emotional reaction to the thought of him getting older has drawn more than 10 million views on YouTube.

    July 31, 2014 1 Photo

  • lockport-police.jpg Police department turns to Facebook for guidance on use of 'negro'

    What seems to be a data entry mistake by a small town police department in western New York has turned into a social media firestorm centered around the word "negro" and whether it's acceptable to use in modern society.

    July 31, 2014 3 Photos

  • The virtues of lying

    Two computational scientists set out recently to simulate the effects of lying in a virtual human population. Their results, published in the Proceedings of the Royal Society B, show that lying is essential for the growth of a cohesive social network.

    July 31, 2014

  • Sunburn isn't the only sign of summer that can leave you itchy and blistered

    You've got a rash. You quickly rule out the usual suspects: You haven't been gardening or hiking or even picnicking, so it's probably not a plant irritant such as poison ivy or wild parsnip; likewise, it's probably not chiggers or ticks carrying Lyme disease; and you haven't been swimming in a pond, which can harbor the parasite that causes swimmer's itch.

    July 30, 2014

  • Survey results in legislation to battle sexual assault on campus

    Missouri U.S. Sen. Claire McCaskill joined a bipartisan group of senators Wednesday to announce legislation that aims to reduce the number of sexual assaults on college campuses.

    July 30, 2014

  • An alarming threat to airlines that no one's talking about

    It's been an abysmal year for the flying public. Planes have crashed in bad weather, disappeared over the Indian Ocean and tragically crossed paths with anti-aircraft missiles over Ukraine.

    July 30, 2014

  • Sharknado.jpg Sharknado 2 set to attack viewers tonight

    In the face of another "Sharknado" TV movie (the even-more-inane "Sharknado 2: The Second One," premiering Wednesday night on Syfy), there isn't much for a critic to say except to echo what the characters themselves so frequently scream when confronted by a great white shark spinning toward them in a funnel cloud:
    "LOOK OUT!!"

    July 30, 2014 1 Photo

  • 20140729-AMX-GIVHAN292.jpg Spanx stretches into new territory with jeans, but promised magic is elusive

    The Spanx empire of stomach-flattening, thigh-slimming, jiggle-reducing foundation garments has expanded to include what the brand promises is the mother of all body-shaping miracles: Spanx jeans.

    July 29, 2014 1 Photo

  • Medical marijuana opponents' most powerful argument is at odds with a mountain of research

    Opponents of marijuana legalization are rapidly losing the battle for hearts and minds. Simply put, the public understands that however you measure the consequences of marijuana use, the drug is significantly less harmful to users and society than tobacco or alcohol.

    July 29, 2014