For-profit education companies focusing on low tuition and student outcomes are poised to succeed, as those are becoming the most important factors for most prospective students, says Jeffrey Y. Volshteyn, a Vice President at JPMorgan Chase & Co.
“Schools with low tuition have better new enrollment metrics than the others, for all the reasons that we’ve discussed,” he said. “Within the group, low-tuition providers’ new enrollments in 2011 were up 16% versus a decline of 6% for the higher-tuition providers.”
Volshteyn favors American Public Education (APEI), whose tuition is about 20% lower than in-state tuition at many state institutions. APEI’s heritage is in military student education, and over the past several years, the company has expanded into the civilian market. He says a lot of APEI’s students come on referrals, which he sees as a positive sign of the quality of education and a positive student experience.
“APEI is very impressive in the way they have been able to hold their tuition flat for about 10 years, despite rapidly escalating college costs everywhere else. APEI has highly qualified faculty who have been cited in numerous industry publications as thought leaders in the area of online learning and student outcomes,” Volshteyn said.
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