Discussion Thread-Higher Education and Financial Aid
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Discussion Thread: Higher Education and Financial Aid
The business model for a for-profit sector surrounds the fact that the amount
of tuition they receive should outweigh their overall expenses. These for-
profit institutions are aiming to make money and most of this money would come from tuition and fees that their students pay. They also get their money from other areas such as "...investors, corporate entities, and subsidiary businesses" (
For-profit colleges vs. Nonprofit Colleges, 2023
). For-
profit institution advertises their school to increase their enrollment, therefore increasing their revenue as they will have more students that are paying tuition.
Financial aid has become an important part of higher education, especially with tuition costs rising. It does contribute to student success, especially considering a lot of students would not enroll, or drop out due to financial issues. By receiving financial aid, students can focus more on their education
rather than stress about their finances. It has been found that financial aid and economic status can affect student's success as “…students’ socio-
economic conditions became a major concern for educational researchers when low academic performance at school was observed in students whose parents had low income, low levels of education, and were employed at low-
status jobs” (Rodriguez-Hernandez et al., 2020). So in my opinion, financial aid plays a role for both for-profit and not-for-profit institutions because low-
income and even middle-income students should be able to have the chance to receive a higher education without having to take on massive student loan
debt or cause them to overexert themselves working overtime and taking classes only for them to not do well in their classes. Financial aid still might not cover a student's whole costs, but it helps cut down on the costs and on their overall student loan debt which is very helpful.
There is value in viewing higher education from a business perspective because students are paying a lot of money and colleges and universities should use the money wisely. This being said, since the students are paying for an education, colleges, and universities should be putting money into areas where it would benefit or support students such as good professors, computer labs, research, etc. The problem with for-profit universities and colleges looking at their institution strictly as a business can lead to them forgetting that their purpose is to educate their students and prepare them for their careers. This could lead to less quality in their education programs. Some universities and colleges may also put a lot of money into advertising their institution so that their enrollment grows, which is a good thing, but they should also remember to support the students that are currently enrolled.
Word Count: 429
References:
Discussion Thread: Higher Education and Financial Aid
For-profit colleges vs. Nonprofit Colleges
. TheBestSchools.org. (2023, May 23).
https://thebestschools.org/resources/for-profit-vs-non-profit-colleges/
#:~:text=For%2Dprofit%20colleges%20are%20mostly,their%20programs
%20and%20recruit%20students
Links to an external site.
.Rodriguez-
Hernandez, C. F., Cascallar, E., & Kyndt, E. (2020). Socio-economic status and academic performance in higher education: A systematic review.
Educational Research Review, 29
(February 2020), 100305.
https://doi.org/10.1016/j.edurev.2019.100305
Links to an external site.
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