The U.S. government's recent focus on for-profit college funding comes at a time when such schools are gaining popularity in the Green Bay area.
"This is something we're seeing a need for," said Kristy Croom, Rasmussen director of communication.
Supporters of for-profit, "private sector," colleges say they offer the programming and flexible hours desired by older students. They say businesses appreciate their focus on training for specific, current jobs. Critics, though, argue for-profit college programs may not provide adequate training for specific jobs, and high tuition costs may put students into debt for years.
The U.S. Department of Education last fall began a review of financial aid payments for those types of institutions.
Enrollment at for-profit schools accounts for about 8 percent to 10 percent of all postsecondary students and is growing. That's why federal leaders have started to question whether the income people make after earning a degree from those institutions justifies the high cost of tuition, some advocates say.
The Senate Committee on Health, Education, Labor and Pensions recently held a hearing on the issue, the first in a series of hearings led by Sen. Tom Harkin, D-Iowa, on the industry.
Although those enrolled at for-profit schools make up less than one out of every 10 postsecondary students, they account for one in every four Pell Grant dollars and one in every four student loan dollars, according to Chris Lindstrom, higher education program director for the State Public Interest Research Groups, a public-interest advocacy group.
"Literally billions of dollars flow into these colleges," Lindstrom said. "I think it's perfectly right to make sure they are providing what they say they are."
Representatives for local colleges say the courses are worth the price tag.
"The value Rasmussen College provides is the personalization, the smaller class size," Croom said. "Degree programs focus on what is in demand. We work with business advocates who tell us where the jobs are.
Rasmussen is regionally accredited and offers associate, bachelor's and certificate programs. Fields of study include health-care management, accounting, business administration, information technology and criminal justice.
"We have a pretty good mix of students," Croom said. "Some come straight out of high school. They don't want to be lost in a lecture hall or on a big college campus. Others are older and want to change careers or want additional training for their current job."
About 92 percent of students are placed in jobs in their field, she said. "A main reason people come to us, is we help them find employment after graduation."
Rasmussen has three campuses in Wisconsin — Green Bay, Wausau and Appleton.
Globe University opened its first Wisconsin site in Eau Claire less than three years ago. Since then, campuses have opened in Madison, La Crosse and Wausau, and new sites are opening in Green Bay and Appleton.
"One of the things we do is work closely with businesses; we're really focused on the career piece," said Bob Trewartha, director of campus and program promotions for Globe. "We ask, 'What would be your ultimate employee?' And we try to tailor skills to make sure they get the training.
Students also go outside of the classroom to do service work linked to their majors, he said.
Trewartha said accredited colleges such as Globe and Rasmussen don't mind standards; they weed out the lower-quality schools. But he's keeping an eye on congressional review.
"Our biggest concern is there are certain career paths, such as vet tech, that very few people offer, and you're not going to make a lot of money doing it," he said. "Yet the equipment and technology to run the program is expensive. The federal government will be deciding, you can't go into those fields."
For-profit schools help millions of working adults compete in the global marketplace, said Harris Miller, president of the Career College Association. Growth is steady and expected to continue, he said.
"It's due to general changes in the economy," he said. "But the trend started before the recession. More people now are thinking about postsecondary education; maybe they thought about it before but were too busy. Now, people find themselves either unemployed, underemployed or afraid of losing employment."
Nationally, the average student is age 26, he said.
"As for public schools, many states are facing huge deficits and cutting back funding at exactly the same time when more people need school," Miller said.
So, for example, students looking to get into a nursing program may have better luck signing on at a for-profit, which often offer year-round coursework, than waiting or hoping to find a slot in a public college.
But some programs don't provide the credentials students need to land a job in their chosen field, Lindstrom said.
"It's not true for all for-profit schools, but in some cases, people earn degrees only to learn they don't meet the state requirements to do the job they thought they were being trained for," she said.
Costs vary, but Lindstrom said she's heard of students enrolled in 18- to 24-month programs at for-profit colleges taking on twice the debt a student at a four-year public college carries. Private-sector schools, she added, wouldn't have to worry about congressional concerns about debt-to-income ratio if tuition costs weren't so high.
"The bottom line is, there's profits to be made," Lindstrom said. "More than 80 percent of federal aid grant and loan dollars (schools collect) go to revenue, while about 20 percent is instructional costs. Not only is the student maybe getting ripped off, but it's costing taxpayers, too.
"Nobody is trying to shut down for-profit colleges. The bottom line is, if they're using federal dollars, they have an obligation to show that they are helping people find good jobs and not overburdening them with debt. If they're doing that, then great."