As our society continues to wake up to the realities of systemic racism and works to address it, higher education must be part of the solution. For-profit colleges are among the worst of the worst, and these predatory actors disproportionately harm people of color who are trying to build a better life through education.
Society holds out higher education as the entry point to the middle class, a key ingredient for financial stability and upward mobility of individuals and communities. This message has been targeted with particular force at the African American community, from W.E.B. DuBois’s “talented tenth” to the United Negro College Fund’s “a mind is a terrible thing to waste” campaign.
And yet, there remain unacceptable racial disparities in higher education outcomes, from participation to attainment to resulting debt. There is a severe gap in the number of African Americans who obtain college degrees compared to their white counterparts. And African Americans who do go to college end up with more debt and more loan defaults.
SUING FLORIDA CAREER COLLEGE
FOR TARGETING BLACK STUDENTS
Our lawsuit, Britt v. Florida Career College (FCC), shows how one for-profit college uses racially targeted advertising to peddle a false image of success to people of color, and uses predatory recruiting practices to encourage Black students to enroll in its fraudulent programs. The school promotes images of success and opportunity, even though only one in seventeen FCC programs led to gainful employment under the federal measure, and the company saddles students with debt they cannot hope to repay.
This is not only racist and wrong, it’s illegal.
Perpetuating Racial Inequality Under the Guise of Higher Education
These data points suggest that, in the aggregate, participation in higher education by African Americans is actually entrenching, rather than erasing, existing patterns of inequality that are the result of longstanding racism in the United States. The for-profit college industry is an important piece of this problem. It is as predatory as any payday or subprime lender, and is disproportionately responsible for racial disparities in education debt.
African Americans and other people of color are disproportionately enrolled in for-profit colleges. Black and Latino students make up less than one third of all college students, but represent nearly half of all those attending for-profit institutions. In 2015, more than half of all African American college students were low income (qualified for Pell grants). A student receiving a Pell grant is three times more likely to attend a for-profit college than someone not qualifying for such aid.
Outcomes across the board are extremely bad for this sector. Less than one in five students who enroll in a for-profit school will ever graduate. Less than a quarter of the money for-profit students borrow to pay for their education actually goes to their education. The rest goes to slick marketing and advertising, executive compensation, and shareholder profit. And studies show that those who do graduate from for-profit colleges do worse in the labor market than those with only a high school education.
Department of Education statistics show that close to 70% of African Americans who borrow to attend a for-profit college default on their loans within ten years. Because the industry targets its worthless products in explicitly racial terms, the debt associated with for-profit colleges is not only predatory, it’s racist.
For-Profit College Industry Spin
This predatory industry compounds the effects of the entrenched, systemic racism that has unfairly disadvantaged some while advantaging others. It closes the path to the middle class for thousands of African-American students simply trying to do what we are all told to do, which is to pursue higher education.
The industry also hides behind racial tropes in order to oppose—and often, defeat—any attempt to regulate its predatory conduct. For example, the industry encouraged member schools to attack the “gainful employment” regulation as “academic redlining.” It consistently elides the distinction between historically black colleges and universities and so-called “minority serving institutions.” The former are authentic cornerstones of the African-American community, forged at a time when higher education was legally denied to people on the basis of race, and continuing today as important forces for education and racial justice. The latter are profit-seeking corporations targeting people on the basis of race.
A lawsuit asserting that Florida Career College targets students based on race, focusing its predatory marketing and deceptive recruitment practices on Black students, exacerbating the racial wealth gap.
Tiffeny Anderson, Dianna Bond, Veronica Boyd, Crystal Larkin, Sharonda Nixon, Barbara Turner, and Shirley Washington v. Virginia College
A lawsuit asserting that Virginia College engaged in “reverse redlining” in violation of the Equal Credit Opportunity Act by targeting African Americans.
Lawyers' Committee for Civil Rights Under Law, Mississippi Center for Justice, North Carolina Justice Center, Project on Predatory Student Lending, Southern Poverty Law Center
Letter to Senators Doug Jones, Elizabeth Warren, Kamala Harris, and Catherine Cortez Masto proposing reform to address inequities in higher education.
"Despite the claims that for-profit colleges serve an unmet need, are more nimble than stodgy traditional colleges, and increase access to poor and minority students, for-profit colleges target and thrive off of inequality."
"Black Americans who recently graduated college owe close to twice as much on their student loans as whites, a racial gap that has climbed nearly 14-fold over the past 15 years."
Gainful Employment: A Civil Rights Perspective | The Leadership Conference Education Fund
For years, studies and investigations have found the for-profit schools implement policies and practices that produce adverse outcomes for African-American and Latino students.
September 9, 2019
The System is Rigged: Student Debt and the Racial Wealth Gap | Roosevelt Institute
Today, a new report co-released by Demos, The Century Foundation, and The Roosevelt Institute, Bridging Progressive Policy Debates: How Student Debt and the Racial Wealth Gap Reinforce Each Other, explores the connections between America’s persistent racial wealth gap and our crippling $1.6 trillion student debt crisis.
State of Higher Education for Black Californians | College Opportunity
The California Dream envisions a place of new beginnings where hard work is rewarded, and opportunity and good fortune are available to anyone who seeks it. This dream is threatened, as is our collective future as Californians, when its promise is only achievable by a few or when a Californian’s ZIP code, race/ethnicity, gender, or the amount of money in their bank account make that dream an illusion.
May 8, 2020
Students Call College That Got Millions In Coronavirus Relief 'A Sham' | NPR
A for-profit college received millions of dollars from the federal government to help low-income students whose lives have been upended by the coronavirus outbreak, but that same school, Florida Career College (FCC), is also accused of defrauding students.
April 30, 2020
For-Profit College Set To Collect $17 Million In Federal Stimulus Cash Is Sued For Predatory Practices | Forbes
Florida Career College, a for-profit two-year vocational school, received $17 million in federal coronavirus relief money. It was one of dozens of for-profits slated to receive a total of $1.1 billion in grants included in the $14 billion Congress set aside for institutions of higher education in the CARES Act.
February 24, 2019
California's Black Students Lag in College Completion Despite Some Gains | The Mercury News
Black students in California have shown progress in enrolling and completing college in recent years but still lag behind other racial and ethnic groups.
Focused on Targeted Advertising, Not Education
Public records indicate Corinthian Colleges spent over $600,000 placing ads on BET in a two-week period.
Tell Us What You Know
Do you know about discrimination happening in the for-profit college sector?