Low-Overhead Education?

Here's a piece from the New York Times about the University of Phoenix. It appears that for-profit institutions may not look so good when they're held to the same standards as public institutions (regarding such things as graduate rates and number of part-time faculty).

February 11, 2007

Troubles Grow for a University Built on Profits

By Sam Dillon

PHOENIX — The University of Phoenix became the nation’s largest private university by delivering high profits to investors and a solid, albeit low-overhead, education to midcareer workers seeking college degrees.

But its reputation is fraying as prominent educators, students and some of its own former administrators say the relentless pressure for higher profits, at a university that gets more federal student financial aid than any other, has eroded academic quality.

According to federal statistics and government audits, the university relies more on part-time instructors than all but a few other postsecondary institutions, and its accelerated academic schedule races students through course work in about half the time of traditional universities. The university says that its graduation rate, using the federal standard, is 16 percent, which is among the nation’s lowest, according to Department of Education data. But the university has dozens of campuses, and at many, the rate is even lower.

More here.