ERIC Number: ED408463
Record Type: Non-Journal
Publication Date: 1997-Jun
Reference Count: N/A
Proprietary Schools. Poorer Student Outcomes at Schools That Rely More on Federal Student Aid. Report to the Chairman, Subcommittee on Human Resources, Committee on Government Reform and Oversight, House of Representatives.
General Accounting Office, Washington, DC. Health, Education, and Human Services Div.
The General Accounting Office examined the relationship between proprietary schools' performance and their reliance on funds provided under Title IV of the Higher Education Act. Data were collected through a confidential mail survey of schools from the five proprietary school accrediting agencies. Responses were obtained from 1,181 (77%) of the 1,543 schools in the adjusted survey sample. The schools' reliance on Title IV funds and student outcomes were analyzed through correlation, regression, and limitations analyses. It was discovered that proprietary schools that relied more heavily on Title IV funds tended to have poorer student outcomes. On average, the higher a school's reliance on Title IV, the lower its students' completion and placement rates, and the higher its students' loan default rates. Although reliance on Title IV was a significant factor in explaining completion and default rates, it was not significant in explaining placement rates. It was concluded that requiring proprietary schools to obtain a higher percentage of their revenues from non-Title IV sources could save millions in default claims but might result in fewer low-income students being admitted to proprietary schools. (Appended are information on the study's objective, scope, and methodology and detailed results of the statistical analyses. Seventeen tables/figures are included.) (MN)
Descriptors: Comparative Analysis, Correlation, Education Work Relationship, Federal Aid, Financial Support, Outcomes of Education, Postsecondary Education, Proprietary Schools, Regression (Statistics), School Effectiveness, Student Financial Aid, Student Placement, Tables (Data)
U.S. General Accounting Office, P.O. Box 6015, Gaithersburg, MD 20884-6015; fax: 301/258-4066; http://www.gao.gov (first copy free; additional copies $2.00 each; 100 or more: 25% discount).
Publication Type: Reports - Evaluative
Education Level: N/A
Authoring Institution: General Accounting Office, Washington, DC. Health, Education, and Human Services Div.
Identifiers - Laws, Policies, & Programs: Higher Education Act Title IV