When a For-profit College Doesn’t Make a Profit

Just because it’s a for-profit college doesn’t mean it makes money. The for-profit business college known as Chancellor University will not reopen next year.

According to an article in the Cleveland Plain Dealer

Chancellor University, one of Northeast Ohio’s oldest colleges, has closed, school officials announced today without citing a reason.

The school will transfer its several hundred students toAlliant International University, a California-based, private, not-for-profit school with undergraduate and graduate programs, after its summer session ends on Aug. 25, according to a news release.

The closing follows a prolonged period of accreditation and financial problems, including $162,000 owed to the taxpayer-subsidized Cleveland-Cuyahoga County Port Authority.

The school, which began in 1848 Folsom’s Business College, has experienced severe financial problems in recent years. It has struggled with large debt loans and declining student enrollment.

In the last few years it’s attempted a massive rebranding. In 2009 former General Electric chief executive officer Jack Welch (“I was afraid of the internet… because I couldn’t type”) brought $2 million to the school to create the institution’s online M.B.A. program and the Jack Welch Management Institute. IN 2011 Welch gave up and moved his program over to Strayer University, another for-profit school.

Both John D. Rockefeller and Harvey Firestone appear to have graduated from Folsom’s Business College, though they likely just studied accounting there, not how to be robber barons.

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Daniel Luzer

Daniel Luzer is the news editor at Governing Magazine and former web editor of the Washington Monthly. Find him on Twitter: @Daniel_Luzer