Re:The Student Loan Bubble is Starting To Burst
by superuser2 on Tuesday September 10, 2013 @11:18AM
(#6360517)
Money going back into the institution and improving research, attracting better staff, buying supplies, building facilities, and improving the quality of life is not profit, it's reinvestment in the organization.
Further, as easy as it is to be offended by brand-new facilities, you'll find that 1) many are paid for by oustide grants and the money never could have gone towards reducing tuition, and 2) those that are paid for with students' money amount to pocket change per student.
A for-profit college educates students as cheaply as possible (in terms of cost to the institution, not price to the student) to maximize the amount of surplus the owners can pocket.
Further, as easy as it is to be offended by brand-new facilities, you'll find that 1) many are paid for by oustide grants and the money never could have gone towards reducing tuition, and 2) those that are paid for with students' money amount to pocket change per student.
A for-profit college educates students as cheaply as possible (in terms of cost to the institution, not price to the student) to maximize the amount of surplus the owners can pocket.