Enrollments Down at For-Profit Colleges

It looks like the boom is over for for-profit colleges, as companies struggle to entice new students.

The Wall Street Journal reported this morning that enrollments at some colleges are down as much as 45 percent, with student balking at debt and the colleges making changes to recruiting and admission standards.

DeVry University has failed to meet earnings forecasts after enrollments tumbled by more than a quarter, while Corinthian Colleges reported today it suffered a 90 percent drop in net income in the fourth quarter. Corinthian and Carpella, which also suffered a 36 percent decline in enrolments at the beginning of the year, have both amended their recruitment tactics after facing criticism over the default rates for student loans.

The high debts incurred by for-profit college students seems to among the factors putting new students off, particularly when places are available at cheaper community colleges. "People are just frozen or deferring, delaying decisions to go to school," DeVry chief executive Daniel Hamburger told the Journal. "The average person in the U.S. has become much more risk-averse and cautious when it comes to spending or committing to anything.”

But, not all students are equal in their views on the benefits of college. As we reported last week, it’s women who are less risk-averse than their male counterparts when it comes to higher education.

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