A new report from Lightcast, a company specializing in labor market analytics, finds that for-profit educational institutions are successfully addressing skill gaps in high-demand fields and delivering deliver positive student outcomes in terms of completion, retention and persistence.
“Talent Shortages and Student Outcomes,” commissioned by the CECU Research Foundation, found for-profit institutions are a critical pipeline for high-demand fields. For-profit institutions also deliver strong student outcomes, even outperforming public and nonprofit institutions in some areas, the report said.
Older research on for-profit institution outcomes does not reflect the significant regulatory changes of the past decade, including the 2014 federal Gainful Employment rule enacted to address concerns about student debt, loan default rates, and program quality, the report said.
“Despite declining enrollment and continued reputational challenges, for-profit institutions remain a significant entry point into higher education for many students who may not be well-served by public or nonprofit options,” the report said.
“While this sector has been the focus of extensive prior research, much of that work predates recent regulatory changes, the widespread closure of low-performing or predatory institutions, and the continued expansion of online learning,” the report said.
Key findings of the report include:
- For-profit two-year colleges had the highest completion rate at 63.6%, compared to 58.9% at nonprofits and 29.2% at public institutions.
- At the certificate level, students at for-profit institutions had 1.5 times higher odds of persisting than students at public colleges.
- Students at for-profit colleges were 5.75 times more likely to complete a credential than peers at public or nonprofit schools.
- Associate degree seekers at for-profit institutions were nearly twice as likely to complete their degree as those at public or nonprofit colleges.
For-profit institutions are aligned with labor market needs, and their graduates experience strong employment outcomes and job satisfaction, the report said. For example:
- Bachelor-degree graduates from for-profit colleges had 1.5 times higher odds of full-time employment and significantly lower unemployment rates than peers from public and nonprofit four-year schools.
- Sub-baccalaureate credential holders (students who have earned a postsecondary credential, such as a certificate or an associate degree) from for-profit schools were twice as likely to secure full-time employment compared to public and nonprofit institutions and reported similar job satisfaction as their peers from other institutions.
To read the complete report, go here.
