- Two more for-profit giants in the higher education world announced closures this week, following in the footsteps of Corinthian Colleges Inc., and others.
- The Chicago Tribune reports Illinois-based Career Education will close all but two of its nearly 20 campuses amid shrinking revenues and stricter government regulation.
- Inside Higher Ed reports on this seeming trend among for-profits, adding that Education Management Corporation (EDMC) announced the phaseout of 15 of 52 campuses, which brings them into company with Kaplan, DeVry, and Anthem Education, all of which have announced closures or sales of campuses in the last year.
For-profit colleges point to shrinking enrollment as a major contributor to their decisions to close. Many of these schools get 80% to 90% of their revenue from federal financial aid. When fewer students apply for that aid, the school’s overall revenue is hit hard. The Obama administration has been a vocal opponent of this sector of higher education, approving more regulatory burdens for campuses that are also contributing to their demise. The latest closures represent a substantial shrinkage in the for-profit landscape, but EDMC and Career Education certainly still have a presence in higher education.