Over the past five years, this education sector has turned into a serious business: the combined stock index of commercial colleges has grown by 460%. But now American regulatory authorities have taken on the industry, and the superprofits, most likely, have come to an end.
It should be said that commercial colleges themselves gave cause for this. For example, one such organization, Apollo Group, amid the growth of its profits and capitalization by 374% over the past five years, began to violate American law. In particular, the college set a progressive pay rate for its employees who recruit students.
The more students they admitted, the higher their salaries. Employees who failed to meet the plan were subjected to the most severe measures: they were placed in complete isolation in rooms with glass walls and threatened with dismissal. However, in the education sector, it is forbidden to make salaries dependent on student recruitment. Now Apollo must pay a fine of $8.9 million.
Apollo Group is not the only one of its kind. Many commercial colleges are now also accused of inflating the number of students by including already expelled students in the lists, in order to obtain a larger amount of government assistance.
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