How For-Profit Colleges Create a Wealth Drain for Vulnerable Students

In this episode of Inequality Conversations with Fexingo, Lucas and Luna examine how for-profit colleges systematically drain wealth from low-income and first-generation students. They unpack the specific case of ITT Technical Institute, which collapsed in 2016 leaving students with worthless degrees and massive debt. The hosts walk through the business model: aggressive recruitment targeting Pell Grant recipients, tuition nearly four times that of community colleges, high dropout rates, and limited job placement. They explain how federal student loan policies inadvertently subsidized the industry, and how the 90-10 rule — which requires for-profits to get at least 10% of revenue from non-federal sources — created perverse incentives. They also discuss current reform efforts, including the Biden administration's updated gainful employment rule. The episode offers concrete takeaways: how to evaluate a college's return on investment, and why income share agreements might be a better alternative. #ForProfitColleges #ITTTechnicalInstitute #StudentLoanDebt #WealthGap #HigherEducation #GainfulEmployment #90-10Rule #PellGrant #CollegeAffordability #IncomeShareAgreement #CorinthianColleges #EducationInequality #EconomicJustice #Economics #WealthInequality #FexingoBusiness #BusinessPodcast #EducationPolicy Keep every episode free: buymeacoffee.com/fexingo