What Is the Priority?
Motivation is the key to understanding most situations. Education is no different. A non-profit school exists to make powerful graduates. Nothing advertises the college better. All funds are redirected back into the institution to educate the next class of students.
For-profit schools exist to enrich the business. If a program is not making a suitable return on investment, it will be cut or reformed. Spending excessive amounts on staff, equipment or facilities is not part of the plan.
For the academic year of 2008-09, for-profits spent an average of $2,659 on the instruction of each student while non-profits spent $9,418. Meanwhile for-profits charged $30,900 while non-profits charged $26,600.
Laureate, the largest for-profit educator in the world, lays off teachers as part of its business model. It earns $4 billion a year worldwide by taking over schools that are in debt. It trims fat, replaces full-time professors with part-timers and recruits thousands of new students while cutting staff.