ECONOMIC REPORT OF THE PRESIDENT

Box 5-6: The Rise of the For-Profit Sector
The for-profit sector represents a small share of college enrollment,
but it has grown rapidly in recent years. At its peak in 2010, for-profit
enrollment reached over 2 million students, up from only 240,000 in
1995 (Figure 5-i), in part driven by funding constraints at community
colleges (Deming, Goldin, and Katz 2012, 2013). Since then, for-profit
enrollment has ticked down, standing at 1.6 million in 2014 and representing
8 percent of total enrollment at degree-granting institutions.
The total amount of student loan dollars disbursed at for-profit colleges
has also declined, standing at $15.7 billion in award year 2014–15, down
from the 2009–10 peak of $24.3 billion.
Coupled with the rise in for-profit enrollment has been an increase
in the number of for-profit institutions. The number of for-profit institutions,
including branch campuses, increased from 345 in 1995 to 1,451
at its peak in 2012–2013 (Figure 5-ii). As with for-profit enrollment,
for-profit institution counts have declined in recent years. The growth of
the for-profit sector has presented a challenge to ensuring that students
receive a high-quality education. A growing body of research, described
in the section above, has found that outcomes for students at for-profit
colleges are on average worse than at similar institutions they might
otherwise attend.
Figure 5-i
College Enrollment by Sector Over Time
Millions of Students
24
21
18
15
For-Profit
Nonprofit
4 Year Public
2 Year Public
12
9
6
3
0
1970 1975 1980 1985 1990 1995 2000 2005 2010
Note: Data for private enrollment in 1988 and 1989 are missing by detailed sector and are
linearly interpolated. Enrollment is total fall enrollment in degree granting post-secondary
institutions.
Source: NCES (2015)
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