Half of for-profit college students receive government-funded Pell Grants, and those students make up for 20 percent of Pell Grant recipients -- even though the schools only serve six percent of the country's student population.
The grants are targeted at needy students who might not otherwise go to college and, ostensibly, the money is not helping a healthy enough amount of for-profit college students go on to profitable careers. The schools have come under intense fire for their low post-graduation employment rates and high incidence of student loan default. Last week, the government proposed a set of regulations that would terminate federal aid to the schools if they could not prove that their students went on to paying jobs, among other stipulations.
Despite this, the University of Phoenix raked in more than $1 billion in Pell Grant money in the 2009-2010 school year, according to Education Department data. Other schools were not far behind. See where else the money is going below.
What are your thoughts? Do you think this is a problem? Weigh in below.