Educational Industry Dynamics

A market of opportunities.

A Large and Growing Segment of Higher Education

Over three million students attended accredited private sector colleges in 2008-2009, representing 12% of the total market of nearly 27.5 million post-secondary students.¹
From 2005 – 2009, enrollment at private sector colleges increased by 46%.¹
Private sector schools grant 30% of all associate degrees, diplomas and certificates.³

Demand for Entry-Level Post-Secondary Credentials

The Georgetown Center on Education and the Workforce is projecting 47 million job openings from 2010 - 2018. Nearly two-thirds of these jobs will require at least some post-secondary education. ²

An estimated 14 million job openings will require a two-year associate degree, or a post-secondary certificate or diploma.²
95% of Corinthian students are working toward an associate degree, diploma or certificate in areas that are currently in demand in the labor market (Company Reports)

Providing Access for At-Risk Students

Private sector colleges serve more high risk students, as defined by the U.S. Department of Education. Risk factors include: low income, minority, enrolled part-time or working full-time while enrolled, single parent, financially independent, having dependents. ³

Approximately half of students at private sector schools are high risk students, versus one-third of students in public two-year schools ³
Minority graduation rates are 64% at private sector institutions (two-year programs and shorter) and 36% at public two-year institutions ³

Public Community Colleges vs. Private Sector Colleges

60% of private sector college students who attend 2-year institutions graduate within six years of enrolling, versus 22% of community college students.¹
Career colleges are 18% more successful than community colleges in retaining part-time students, and 15% more successful in retaining full-time students.⁴
Enrollment continues to swell at public community colleges, but the funding outlook is “grim”. Thirty-nine out of forty-eight states predict that community college budgets will be flat to down in the coming year.⁵
Private sector colleges are investing approximately $1 billion annually to expand facilities, buy new equipment, and build new campuses.³
The total cost to the student/taxpayer of a “positive outcome” (2-year degree, transfer to another institution, certificate or diploma), is $25,300 at a community college, and $26,700 at a private sector college. Even though tuition is lower at a community college, such institutions are heavily subsidized by state and local tax dollars.³

Economic Value to Students

Having some college but no degree, or a post-secondary certificate, is worth about $473,000 more than a high school degree over a lifetime of earnings.²
For two-year programs and shorter, annual income gains for private sector graduates average $7,900, versus $7,300 for a public college graduate.³
For two-year programs and shorter, the average debt burden for a private sector student is ~ $15,000. The monthly payment for a loan of that amount, using typical student loan terms, is ~ $160.³