Proprietary colleges are American for-profit colleges and universities. They are operated by their owners or investors, rather than a not-for-profit institution, religious organization, or state or local government. Sometimes a proprietary college may also overlap with the sector of non-degree granting business colleges.

Because of this profit motive, some such colleges have in the past been investigated for or been charged with illegally admitting students to falsely obtain government financial aid.[1] [2] However, traditional colleges have also had this problem.[3] [4] Legislation has tightened considerably the parameters for getting financial aid in recent years.[citation needed] In most cases, degree-granting colleges with accreditation from an agency that is recognized by the U.S. Department of Education and is authorized to distribute Title IV student financial aid must meet exacting standards. Students wishing to attend a proprietary college should consider the institution's accreditation. It is also typical that a majority of students attending proprietary colleges receive some form of government financial aid, such as Pell Grants and student loans.

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[edit] List of proprietary colleges

[edit] 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.[5]

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.[6] Kinser's classes of proprietary colleges are organized by these criteria:

1. Geographic scope:

  • "Neighorhood" - 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:

[edit] Differences

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Proprietary colleges are not necessarily two-year schools such as community colleges, which are generally state funded. Their programs are usually limited because of the high concentration in job training programs that are in demand in the current marketplace such as medical, business administration, technology, paralegal studies, and construction trades such as electrictians. Their business models are based on providing quick accelaration programs as opposed to community colleges, which sometimes are state mandated to provide certain programs. Their tuition rates are not very competitive with those of community colleges, since most of their target student base consists of working or recently unemployed adults, who need to adjust their careers in an ever fast changing world where there is lack of job security because of the increasing use of technology and business practices such as offshoring by big business corporations that are trying to maximize their profit. Proprietary colleges should start refocusing their business model to start tradional programs because of the high cost associated with their limited programs. Some web-based ones such as Phoenix University are prospering because of their high visibity and marketing to attract students who are comfortable using computer technology, but some also are floundering because of their limited offerings and different lesgislations in different states that mandate college graduates get quality education that are sometimes taxpayer funded through federal or state programs. In New York, former Republican Governor George Pataki signed an executive order banning the licensing of new proprietary colleges in the state after the closure of Interboro Institute, which created a nightmare for the state's education agency.




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