question: How do scammy for-profit schools stay in business?
comment: They have access to enough funding (in large part due to student loans being so easy to obtain) to maintain high profile advertising campaigns. They also heavily target those who, for various reasons, struggle to get into other schools and see something like ITT Tech or University of Phoenix as better than their local community college (largely due to advertising presence).
passages: Laureate Education and Apollo Education Group have become powerful international education corporations. Apollo Education Group is now part of Apollo Global Management. Laureate, the largest US-based for-profit higher educator, was once reported to have more than one million students worldwide, in North America, Latin America, Europe, the Middle East, Africa, and Asia Pacific. Former President of the United States Bill Clinton was an honorary Chancellor of the for-profit enterprise.
  
  Section::::For-profit marketing, enrollment and lead generators.
   The for-profit college industry has spent billions of dollars on student recruiting, advertising, and buying leads for recruitment. In 2011, for example, University of Phoenix, ITT Tech, Devry, and Capella together spent more than $100,000,000 on Google Ads. Several Wall Street-backed schools spend large amounts on advertisements on day time and late night television. In 2012, Apollo Group, the parent company of University of Phoenix, reportedly spent $665,000,000 on advertising and marketing. The colleges' marketing departments rely heavily on Lead Generators, which are companies that find potential students ("leads") and provide their personal information and preferences to for-profit college.
   Section::::CEDU Offshoots.
  
  A number of behavior modification facilities/CEDU offshoots were opened by former CEDU staff and students, including
  
  BULLET::::- Mount Bachelor Academy
  
  BULLET::::- Monarch School, founded by Patrick McKenna, the first Rocky Mountain Academy Alumni and Daniel Earle's son, Timothy Earle, a former staff member and team leader at Rocky Mountain Academy.
  
  BULLET::::- The Cascade School, Whitmore, CA, founded in 1984 by Michael and Michelle Allgood, Eric Von Meltzer, Gayle and Art Tilles, Paula Rudy, and Craig and Barbara Cass closed 2003
  
  Section::::Celebrity and CEDU.
   For-profit colleges have frequently offered career-oriented curricula including culinary arts, business and technology (including coding bootcamps), and health care. These institutions have a long history in the US, and grew rapidly from 1972 to 2009, until their current enrollment and revenue declines. Approximately 40 percent of all for-profit college campuses have closed since 2010.
   There are three types of for-profit schools. One type is known as an education management organization (EMO); these are primary and secondary educational institutions. EMOs work with school districts or charter schools, using public funds to finance operations. The majority of for-profit schools in the K–12 sector in the United States function as EMOs, and have grown in number in the mid-2000s. The other major category of for-profit schools are post-secondary institutions which operate as businesses, receiving fees from each student they enroll. The third type of for-profit schools, which is less prevalent in the United States, are K–12 schools which operate as businesses.
   Section::::Lawsuits and financial reporting.
   Kevin Carey of the New America Foundation said in a 2010 column in "The Chronicle of Higher Education" that "For-profits exist in large part to fix educational market failures left by traditional institutions, and they profit by serving students that public and private nonprofit institutions too often ignore." He also noted that "There's no doubt that the worst for-profits are ruthlessly exploiting the commodified college degree. But they didn't commodify it in the first place."
  
  Section::::Australia.
   Another aspect that differentiates for-profit stock market education companies from traditional colleges is the commercialization factor. For-profit stock market education companies frequently develop other products – such as software and newsletters – that they market to their students. Colleges and universities, frequently founded for the purpose of providing education and established as non-profit organizations, do not follow this business model.
  
  Section::::Mentor/apprentice relationship.
   Anthony W. Miller is Apollo Education Group's Chairman. 
  
  Section::::Schools and subsidiaries.
  
  Section::::Schools and subsidiaries.:University of Phoenix.
   PLANS also claims that not only private, but also public, Waldorf methods schools are anthroposophical institutions. According to PLANS, public Waldorf teachers are required in most cases to take Waldorf teacher training in which they are asked to read works almost exclusively by Rudolf Steiner, the founder of Waldorf education, the focus of which are Steiner's tenets of anthroposophy.
   In 2015, Corinthian Colleges filed for bankruptcy and all of its Heald College campuses were closed. In 2016, all Westwood College campuses were closed. Le Cordon Bleu was also in the process of closing all of its campuses. ITT Technical Institute and Devry also closed multiple campuses. In November 2015, the CBS drama The Good Wife, addressed students at Colosseum University, a fictionalized for-profit college that used deceptive recruiting tactics. The episode included mention of accreditation and the 90-10 rule.
   About a decade after these schools had closed a diverse group of public relations and image consultancy firms started to appear in London offering largely 1 or 2 day finishing courses and social skills at commercial rate fees far higher that those charged by the colleges that closed mostly by the millennium (Lucie Clayton had been the exception). They appeal often to new international money and corporate clientele. Some partner with 5 star hotels to offer their courses but none are taught by a body teaching staff in a school or college environment like their predecessors. The model is more business and commercial than before.
   The programs cost to , though discounts may be available for partner university alumni. The unaccredited, non-credited programs are not considered "eligible educational institutions" by the United States Department of Education and are not eligible for federal loans and students do not receive a Form 1098-T. Trilogy does not offer Income Share Agreements and there are no money-back guarantees. The affiliates schools do not regard program graduates as university alumni, nor program enrollees as university students.
  
  The typical enrollee is a nontraditional student aged 31.
  
  Section::::Business.:Course structure.
   For-profit colleges use lead generation companies target potential students and to take their personal information. However, as competition has heated up in US higher education, traditional schools have also employed them. Lead generators use multiple strategies to find and enroll students. There are hundreds of sites on the internet that gather information for schools. Two of the most notable lead generators are QuinStreet and Education Dynamics.
  
  Section::::For-profit online program managers (OPMs).
  
  Online program managers (OPMs) play an significant role in online education.
  
  Section::::For-profit online program managers (OPMs).:List of for-profit online program managers and the schools they service.
   BULLET::::- InStride (OPM for Arizona State University)
  
  BULLET::::- Pearson Education (Embanet)
  
  BULLET::::- Wiley (publisher)(Education Solutions) servicing Northern Illinois University,Michigan State University
  
  BULLET::::- Noodle Partners
  
  BULLET::::- Collegis Education
  
  BULLET::::- HotChalk
  
  BULLET::::- iDesign
  
  BULLET::::- Kaplan Higher Education (servicer of Purdue University Global)
  
  BULLET::::- Laureate Education serves University of Miami graduate programs.
  
  BULLET::::- Grand Canyon Education serves Grand Canyon University.
  
  Section::::Coding bootcamps.
  
  In 2019, coding bootcamps remain popular. However, there may already be an oversupply of graduates and some coding bootcamps have already closed.
  
  Section::::Student loan servicers.
  
  For-profit student loan servicers have included Sallie Mae, Navient, and Nelnet.
  
  Section::::Politics and political lobbying.
   Section::::List of for-profit corporations and their brands.
  
  According to the National Center for Education Statistics, there were approximately 3,200 for-profit institutions in the US in 2015.
  
  Many for-profit institutions are subsidiaries of larger companies. The following is a list of for-profit companies in the higher education sector:
  
  BULLET::::- Adtalem Global Education (owner of Chamberlain Nursing, Ross University Medical School, Ross University School of Veterinary Medicine)
  
  BULLET::::- Ancora Education (owner of Arizona Automotive Institute, Berks Technical Institute, Edge Tech Academy, International Schools, McCann School of Business & Technology, Miller-Motte Technical College, Platt College, and South Texas Vocational Technical Institute.
   For-profit education
  
  For-profit education (also known as the education services industry or proprietary education) refers to educational institutions operated by private, profit-seeking businesses. For-profit education is common in many parts of the world, making up more than 70% of the higher education sector in India, Malaysia, Japan, South Korea, Indonesia and the Philippines.
  
  Section::::United States.
   In March 2011 the Apollo Group sold its corporate headquarters in Arizona and leased it back in order to raise $170 million in cash. The deal with Cole Real Estate Investments included a 20-year lease requiring Apollo to remain in the complex. "In our view, it does not change the view of the company. Apollo isn't hungry for cash: It carries little debt but generates $4 billion in revenue and has $650 million in net income and $1.5 billion in cash on its balance sheet," commented Peter Wahlstrom of Morningstar, an investment-research company.
   Aptimus is a full-service, in-house marketing agency for Apollo Group education institutions, including the University of Phoenix, Axia College, the Institute for Professional Development, Olympus High School, and Insight School.
  
  Section::::Schools and subsidiaries.:Orange Lutheran Online.
  
  Lutheran High School of Orange County (LHSOC) licenses its name to the Apollo Group to offer online courses.
  
  Section::::Sold or closed operations.
  
  Section::::Sold or closed operations.:Meritus University (closed 2011).
   BULLET::::- Grantham University – Kansas City, Missouri
  
  BULLET::::- Hamilton College – Iowa; now part of Kaplan University; formerly operated from multiple locations in Iowa and Nebraska; not to be confused with Hamilton College in Clinton, New York, or with the unaccredited Hamilton University, now Kaplan University
  
  BULLET::::- Harris School of Business – multiple locations
  
  BULLET::::- Idaho College of Osteopathic Medicine - Meridian, Idaho
  
  BULLET::::- International Education Corporation operates US Colleges, Florida Career Colleges, United Education Institute and UEI Colleges
  
  BULLET::::- Las Vegas College – locations in Nevada and Texas
  
  BULLET::::- Laureate International Universities- parent company of Walden University
   In January 2014, EDMC was among several for-profit schools approached by approximately a dozen attorneys general for information in an investigation of their practices.
   BULLET::::- International Education Corporation owns UEI College, United Education Institute, Florida Career College and US Colleges.
  
  BULLET::::- JLL Partners (owner of Education Affiliates and Ross Medical Education Center)
  
  BULLET::::- K12
  
  BULLET::::- Laureate Education (owner of Walden University and OPM for University of Miami)
  
  BULLET::::- Lincoln Group of Schools
  
  BULLET::::- Linden Education Group
  
  BULLET::::- Nemo Investor Aggregator owner of Cortiva Institute brand
  
  BULLET::::- Ochsner Health System: Ochsner Clinical School
  
  BULLET::::- Palm Ventures (owner of DeVry University)
   Some critics have called for-profit education "subprime education", in an analogy with the subprime mortgages bubble at the heart of the Great Recession – finding uninformed borrowers and loading them with debt they cannot afford, then securitizing and passing the loan onto third-party investors. Activist short seller Steve Eisman (famous for being a character in Michael Lewis's "The Big Short") has described the accreditation situation regarding for-profits like ITT as follows: "The scandal here is exactly akin to the rating agency role in subprime securitizations."
   BULLET::::- Premier Education Group (owner of American College for Medical Careers, Branford Hall Career Institute, Harris Casel Institute, Harris School of Business, Salter College, The Salter School, Salter School of Nursing, Seacoast Career Schools)
  
  BULLET::::- Quad Partners (owns Beckfield College, Blue Cliff College, Pacific College of Oriental Medicine, Swedish Institute, and Trillium College
  
  BULLET::::- Strategic Education (merged Strayer and Capella University)
  
  BULLET::::- TA Associates (owner of Full Sail University)
  
  BULLET::::- Universal Technical Institute
  
  BULLET::::- Zovio (Owner of Ashford University and Fullstack Academy, contract with University of San Diego for cybersecurity bootcamp)
   The firm earns $150 million annually in revenue, in 2016. In 2018, the firm has competitors in terms of MOOCs such as Coursera and Khan Academy. The production quality of the courses is "a cut above" free courses offered on YouTube, according to a report in "The New York Times".
  