Online colleges and for-profit institutions in general typically have a cyclical life cycle: they are on the top one moment and on the bottom the next. While online education has been “on the top” for the past few years, we can’t help but wonder whether their erratic spending is going to catch up with them once students stop enrolling at the pace they currently are. Advertisements alone make up the bulk of for-profit universities’ spending and at the rate that many students are defaulting on their government-issued loans, it does not seem like it will be too long before online colleges are no longer at the top, unless drastic changes are made.
We are now accustomed to the constant barrage of ads for online universities through commercials, billboards, radio ads, even on the sides of buses. However, is this too much too soon for a relatively new “invention”? Did we jump our guns with the notion of online education so fast that we didn’t consider the consequences? The founders and owners of most online colleges do not seem to think so and continue to spend on advertisements, content with the constant influx of money that seems to pour in as a result of both the ads and the tireless efforts of recruiting agents. Most online colleges have recruitment offices in major cities, much like a military unit. Additionally, online colleges do not have to worry about losing funding or the importance of tuition rates – their salaries are pretty much paid for through government grants, and the loans that the federal government give to registered students.
This presents a scary balance between the federal government and for-profit institutions, a balances which we are hesitant to tip in either favor. Top online colleges have reached the summit they are now at because of government funds as well as a wide array of advertisements, each which feature happy students earning degrees from home. Never before have we had such a mass onslaught of advertisements for an educational program; however, this barrage of ads has been proven to work, as more and more students every day call in with questions about the specific online college. How else did you think the top online colleges remained in business?
However, the ads have become discouraging over the years, as news reports have leaked that recruiting agents get paid according to the number of students they rope into attending the program. New government policies will curtail this practice, but it is unclear whether it will hurt the online education industry. Additionally, new regulations will also curtail the student population of schools with a high rate of defaulting student loans, in an attempt to clean-up the online education industry. It seems that despite all odds, online colleges will remain on top in the years to come, especially with the government cleaning up their messy leftovers.
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