For Immediate Release
November 19, 2020
Contact:
Alex Rossman
arossman@mlpp.org
Cell: 517-775-9053
New report shows many for-profit colleges use deceptive practices to recruit students in order to gain access to federal aid
LANSING—For-profit colleges in Michigan are overpriced, under-regulated and target students who have low incomes, according to a new report from the Michigan League for Public Policy. The report, For-profit colleges in Michigan: Path forward or dead end?, shows that most for-profit colleges in the state—there were 77 of them in 2018—cost more money than traditional public schools and don’t provide opportunities or degree value that aligns with that high price tag. The schools target students with low incomes, Black and Latinx students and veterans largely because those students are more likely to receive federal aid like Pell grants.
“We see predatory behavior when it comes to the way these for-profit institutions advertise. They’re aggressively recruiting folks earning low wages, nontraditional students trying to raise a family, our nation’s veterans, and Black and Latinx students. In fact, nearly three-quarters of students in for-profit schools in the United States had an income of $24,000 or less in 2016. Meanwhile, the students are graduating with massive debt and lower employment rates than their counterparts at traditional public and nonprofit private schools,” said Gilda Z. Jacobs, President and CEO of the Michigan League for Public Policy.
All told, Black students are overrepresented in for-profit schools when compared to the overall population of potential Black students in the state. In 2018, on average 30.6% of the student body at a Michigan for-profit school was Black. This percentage of Black enrollment was at least 20 points greater than that in other types of institutions in the state. Systemic inequities in postsecondary education by race and targeted, aggressive marketing strategies likely compound, creating overrepresentation of Black students enrolled in for-profit institutions in the state.
Eighty-three percent of graduates from for-profit colleges in the U.S. took out student loans and graduated with an average of $39,000 in debt. That’s 41% higher than graduates from other types of four-year colleges. What’s more, 30% of students at for-profit colleges in Michigan defaulted on their federal student loans, compared with just 4% of students at public colleges.
“By definition, for-profit colleges aim to make money for investors. So what incentive do they have to keep tuition and other costs down? They’re not only shortchanging students, they’re exploiting them in order to benefit from federal aid like Pell Grants. The influx of students receiving federal aid means taxpayer money is flowing right into these schools and helping them profit. These for-profit schools prey on students who are in need, promising a way forward to the ‘American Dream,’ but they’re not delivering on that promise,” Gilda Z. Jacobs said.
For-profit college recruiters have used misleading claims about cost, time commitment and job placement in order to attract students. This, along with other deceptive practices, has led to several for-profit colleges and their parent companies being prosecuted for consumer protection violations and other protection violations. Attorney General Dana Nessel has signed Michigan on to several multi-state lawsuits against for-profit educational companies that defrauded students.
The League recommends a variety of solutions that state and federal policymakers can adopt, including requiring institutions to disclose all federal funding, encouraging high school counseling offices to provide materials on how to weigh costs and benefits when choosing a college, and restoring student borrower protections that were enacted during the Obama administration and eliminated by the Trump administration.
The higher education needs of all Michiganders, especially students of color and those with lower incomes, continues to be a focus of the League’s policy work. A report released in May 2020, Expanding the dream: Helping Michigan reach racial equity in Bachelor’s degree completion, found that Michigan ranks third-worst in the nation for the number of bachelor degrees earned by Black students. Another recent report looked at COVID-19’s impact on college students and their basic needs.
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The Michigan League for Public Policy, www.mlpp.org, is a nonprofit policy institute focused on economic opportunity for all. It is the only state-level organization that addresses poverty in a comprehensive way.
Jay Cutler joined the League in March 2026 as the Kids Count Senior Data Analyst, where he collects, analyzes, and prepares data for Kids Count in Michigan.
Danielle Taylor-Basemore joined the League as the Development Data and Stewardship Coordinator in June 2025. She brings with her five years of nonprofit experience with a special focus on community engagement, data visualization and strategic programming. Prior to joining the League, Danielle served as the Business District, Safety, and Digital Manager at Jefferson East, Inc.
Scott Preston is a Senior Policy Analyst with the Michigan League for Public Policy, where he leads the organization’s immigration and criminal justice reform portfolios. In the three years prior to joining the League, Scott facilitated the Southeast Michigan Refugee Collaborative and managed a small business economic development program at Global Detroit. His work included launching Michigan’s first Refugee Film Festival and building on a trusted connector model that linked marginalized communities with crucial resources. Scott’s work at the League is informed by his background in journalism and research. He spent four years covering the Syrian refugee crisis in the Middle East for publications such as The Economist, and later worked with unaccompanied refugee minors through Samaritas. Scott holds a master’s degree in international migration and public policy from the London School of Economics and Political Science.
Kate Powers joined the League as the Chief Development Officer in February 2025. Prior to joining the League, Kate held leadership positions at many Michigan nonprofit organizations, most recently serving as the COO and Chief Development Officer of Ele’s Place. Kate has spent the bulk of her career in fundraising, with a short stint in the state Legislature as a legislative aide to members in both chambers. Kate is a graduate of Michigan State University’s James Madison College with a Bachelor of Arts in Social Relations and has a certificate in fundraising management from the Lilly Family School of Philanthropy at Indiana University. Additionally, Kate served on the East Lansing Public Schools Board of Education and is a past President of the Junior League of Lansing. In her free time, she enjoys traveling with her husband and her son and saving outfit of the day and home decor ideas on Pinterest. 
Nicholas Hess joined the League as the Fiscal Policy Analyst in September of 2024. In this role, Nicholas focuses on tax policy, government revenue, and their impact on working families and racial equity, including the effects of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Nicholas values the role that judicious fiscal policy can play in the improvement of people’s lives and the economy, alleviating inequities along the way.
Audrey Matusz joined the League as the Visual Communications Specialist in September 2024. She supports the team with implementing social media strategies and brainstorming creative ways to talk about public policy. She brings with her nearly a decade of experience in producing digital products for evidence-based social justice initiatives. 
Jacob Kaplan 
Donald Stuckey 
Alexandra Stamm 
Amari Fuller
Mikell Frey is a communications professional with a passion for using the art of storytelling to positively impact lives. She strongly believes that positive social change can be inspired by the sharing of data-driven information coupled with the unique perspectives of people from all walks of life across Michigan, especially those who have faced extraordinary barriers. 
Yona Isaacs (she/hers) is an Early Childhood Data Analyst for the Kids Count project. After earning her Bachelor of Science in Biopsychology, Cognition, and Neuroscience at the University of Michigan, she began her career as a research coordinator in pediatric psychiatry using data to understand the impacts of brain activity and genetics on children’s behavior and mental health symptoms. This work prompted an interest in exploring social determinants of health and the role of policy in promoting equitable opportunities for all children, families, and communities. She returned to the University of Michigan to complete her Masters in Social Work focused on Social Policy and Evaluation, during which she interned with the ACLU of Michigan’s policy and legislative team and assisted local nonprofit organizations in creating data and evaluation metrics. She currently serves as a coordinator for the Michigan Center for Youth Justice on a project aiming to increase placement options and enhance cultural competency within the juvenile justice system for LGBTQIA+ youth. Yona is eager to put her data skills to work at the League in support of data-driven policies that advocate for equitable access to healthcare, education, economic security, and opportunity for 0-5 year old children. In her free time, she enjoys tackling DIY house projects and trying new outdoor activities with her dog.
Rachel Richards rejoined the League in December 2020 as the Fiscal Policy Director working on state budget and tax policies. Prior to returning to the League, she served as the Director of Legislative Affairs for the Michigan Department of Treasury, the tax policy analyst and Legislative Director for the Michigan League for Public Policy, and a policy analyst and the Appropriations Coordinator for the Democratic Caucus of the Michigan House of Representatives. She brings with her over a decade of experience in policies focused on economic opportunity, including workforce issues, tax, and state budget.
Simon Marshall-Shah joined the Michigan League for Public Policy as a State Policy Fellow in August 2019. His work focuses on state policy as it relates to the budget, immigration, health care and other League policy priorities. Before joining the League, he worked in Washington, D.C. at the Association for Community Affiliated Plans (ACAP), providing federal policy and advocacy support to nonprofit, Medicaid health plans (Safety Net Health Plans) related to the ACA Marketplaces as well as Quality & Operations.
Renell Weathers, Michigan League for Public Policy (MLPP) Community Engagement Consultant. As community engagement consultant, Renell works with organizations throughout the state in connecting the impact of budget and tax policies to their communities. She is motivated by the belief that all children and adults deserve the opportunity to achieve their dreams regardless of race, ethnicity, religion or economic class.
Emily Jorgensen joined the Michigan League for Public Policy in July 2019. She deeply cares about the well-being of individuals and families and has a great love for Michigan. She is grateful that her position at the League enables her to combine these passions and work to help promote policies that will lead to better opportunities and security for all Michiganders.
Megan Farnsworth joined the League’s staff in December 2022 as Executive Assistant. Megan is driven by work that is personally fulfilling, and feels honored to help support the work of an organization that pushes for more robust programming and opportunities for the residents of our state. She’s excited and motivated to gain overarching knowledge of the policies and agendas that the League supports.
