Wednesday, June 26, 2013

For-Profit Online Universities are Raping the System

A few years ago while researching information on education assistance for veterans I ran across some startling numbers regarding the veteran graduation rates from for-profit universities and the percentage of federal funding allocated to them.  (Since I do not have the actual link available to the research I must make a note that these numbers are from memory so we’ll say they’re approximately correct).  So “approximately” 60% of all federal education funding for active duty personnel and veterans is allocated towards for-profit institutions (e.g. University ofPhoenix) but unfortunately the graduation rates of these same veterans is below 30%.  HOW IS THIS POSSIBLE?  These schools are raping the system.

Fortunately, a new startup, Ranku, founded by CEO Kim Taylor has also taken notice. Taylor is a former University of Phoenix employee where she was responsible for user acquisition; so she understands how these schools are taking advantage of students looking for an online education.

Ranku, will guide prospective students to non-profituniversities, while barring for-profit schools.  Taylor’s hope is to allow students to discover different name brand schools who recently adopted an online model (e.g. Georgetown University, UNC, Stanford, etc). 


Although, Ranku has an uphill battle since these for-profit universities are notorious for gobbling up competition and will most likely try to stop this type of service from hitting it mainstream.  

How do you think Ranku can overcome a potential lash out from for-profit schools?

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