According to a piece by Josh Keller in the Chronicle of Higher Education, the proposed student aid cuts would adversely affect for-profit colleges, dramatically more than any other institutions. As Keller explains:
California faces a budget deficit this year of $26.6-billion. A big target of budget cutters in the Legislature is Cal Grants, the state’s main student-aid program. Under one proposal, which could save the state $19-million per year, students at colleges with both high student-loan-default rates and large numbers of borrowers would be ineligible for Cal Grants, starting this fall. Fifty colleges with enrollments of more than 500 students would lose student aid under the plan.
Of the 50 institutions, 48 are for-profits.
That’s right, it’s a law specifically designed to keep colleges with low graduation and high default rates from receiving state money, and 96 percent of schools impacted are for-profit schools.
According to Keller, for-profit colleges have lobbied against this budget cutting proposal. One wonders what arguments they’re using.
Go to the link to check out the graph, which I can’t reproduce here.