Giving Compass' Take:

• For-profit college conversions to nonprofit entities faced heavy criticism from opponents at a hearing of a U.S. Department of Education advisory council, although advocates assert that these schools are as worth as liberal arts schools for the status. 

• Should these schools be allowed to transition to nonprofits? How can the policy be shaped to ensure that only schools that deserve the title make the transition? 

• Learn how community colleges are affecting for-profit private universities.

Opponents of for-profit colleges are warning that schools will use a conversion to nonprofit status to shield themselves from regulatory scrutiny.

The verbal beatdown came during a three-hour hearing of a U.S. Department of Education advisory council during which more than 20 witnesses berated schools for predatory behavior that puts profit over student success. Witness after witness accused for-profit colleges of defrauding students and lying about tuition costs, program quality, job placement rates, credit transfers, and potential future earnings. Witnesses also raised concerns over the rate at which for-profit students default on costly student loans.

But those aligned with for-profit colleges defended the schools and characterized the attacks as a political witch-hunt. Steve Gunderson, head of a trade association that represents the schools, said that several smaller schools declined to participate in the hearing over fears of it being another attack on their sector.

For-profits colleges operate in a post-secondary education sector that seeks to train students for specific careers. Unlike liberal arts colleges, career and technical schools emphasize degree and credential programs into which students will transition immediately after graduation.

Read the full article about for-profit college conversions to nonprofit entities by Jessica R. Towhey at InsideSources.