For-profit online enrollments down in 2011

Fain, P. (2011) More selective for-profits Inside Higher Education, November 11

One major factor in the slow down in online enrollments overall in 2011 in the USA (from a 21% annual increase in 2010 to 10% increase in 2011) is that new enrollments for the for-profits are way down this year, by between 30-40%. Since the for-profit sector constitute nearly a third of the overall market in online enrollments, this large drop in new enrollments in the for-profit sector suggests that the public sector enrollments have managed a rate of increased enrollments much higher than 10%.

There are two reasons given for the drop in enrollments at the for-profits: the effect of new Federal regulations; and the slow economy which affects for-profit enrollments more than public sector enrollments. However, the article argues that U of Phoenix and Kaplan in particular are better placed in the future, having reduced considerably the number of non-starters in their enrollments.