Dive Insight:

There are likely a number of factors contributing to the continued decline of the for-profit industry, not the least of which is increased scrutiny under the Obama administration. The nation’s low unemployment rates also mean fewer students are going back to school or looking to re-skill for new careers, and those who are look increasingly to traditional institutions, which have seen tremendous growth in their online education offerings.

Increasingly, for-profit institutions are seeking nonprofit status, either on their own or through partnerships or acquisitions involving traditional institutions. Former University of Phoenix President Bill Pepicello said in a recent conversation, “Ultimately, I think that there won’t be for-profit universities or institutions as we know them today.” He believes a new hybrid model, much like what Purdue University is initiating under Purdue Global as a fully online public institution that is backed by the administrative and marketing services of its for-profit predecessor, Kaplan.