By Terry Schilling, American Principles Project, September 30, 2019
The higher education establishment often promotes the idea that their effort to corner markets, maximize revenue from consumers, and destroy competition is all done in good faith out of compassion for the students they serve. After all, universities are nonprofits, therefore (or at least so the implication suggests) they are nothing like those terrible for-profit businesses in the proprietary education sector.
“… like so many powerful industries, the higher education establishment is calculating and cutthroat, which is why they have been using whatever means possible to destroy their biggest competitor: the for-profit college sector.”
But “nonprofit” is only a tax designation — it’s certainly not a business model. Universities obviously profit. The only real difference between for-profits and nonprofits is where the profit goes. Instead of distributing profit to shareholders like a for-profit business, nonprofit universities can reinvest in luxury student amenities, state-of-the-art athletic facilities, and other capital improvements not necessarily related to student academic achievement, not to mention administrator salaries, all the while using these expenses to justify charging increasingly higher tuition.
Read more at https://dailycaller.com/2019/09/30/schilling-higher-education-competition