January 27, 2021
A new report from the U.S. Government Accountability Office highlights concerns about conflicts of interest in transactions through which for-profit colleges become nonprofit institutions.
The GAO counted 59 such conversions between January 2011 and August 2020. In about a third of those, for-profit college officials were “insiders,” meaning they had a relationship with the nonprofit purchasing entity that could influence its financial decisions.
Several for-profit colleges have sought nonprofit status to circumvent heightened regulations, something the U.S. Department of Education has largely granted.