MarketProprietary college
Company Profile

Proprietary college

Proprietary colleges are for-profit colleges and universities generally operated by their owners, investors, or shareholders in a manner prioritizing shareholder primacy as opposed to education provided by non-profit institution that prioritize students as project stakeholders.

History in the United States
While to some extent proprietary colleges have always existed, their numbers and ubiquitous nature exploded after 1992 when then-committee chairman John Boehner (R-Ohio) of the House of Representatives' Committee on Education and the Workforce killed a federal regulation known as the "90-10 rule", and by simplifying the definition of "institution of higher education" to place for-profit schools on par with nonprofit colleges regarding federal-aid eligibility. The idea behind the 90-10 rule was that if a proprietary school's offerings were truly valuable—for example, if they filled some niche that traditional state and private non-profit educational institutions did not—then surely 10% of their students would be willing to pay completely out-of-pocket, i.e., those who fell above federal guidelines for receiving taxpayer subsidies to attend college. Traditional educational institutions routinely met this bar without even paying attention. ==Classification==
Classification
Proprietary colleges are sometimes called career colleges, business colleges, proprietary schools, institutes, or for-profit colleges. The term preferred by the New York State-based Association for Proprietary Colleges is Proprietary colleges. Kevin Kinser, assistant professor of educational administration and policy at the University at Albany, has proposed a "Multidimensional classification" scheme of for-profit higher education. Kinser's classes of proprietary colleges are organized by these criteria: 1. Geographic scope: • "Neighborhood" – close geographic proximity, in a single state • "Regional" – two or more campuses in neighboring states • "National" – including in states across the United States and virtual colleges 2. Ownership dimension: • "Publicly traded" corporations • Family-owned "enterprise institution(s)" • "Venture institutions" held by private investors 3. Highest degree granted: • Schools that give non-degree certificates • Institutes that grant associate's degree—such as L.P.N., A.O.S., or A.A.S. • Colleges that grant a bachelor's degree—usually a B.S. or BBA • Universities that grant graduate degrees – a master's or doctorate. ==See also==
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