Bridgepoint wants to Convert Its Colleges to Non-Profts

Sunday we wrote about the new gold rush in education: for-profit colleges converting to non-profit status, allowing them to shed the stigma and special regulatory requirements of for-profits, notably the federal 90-10 rule, while retaining parallel for-profit entities that could keep getting paid by the non-profit, and thus keep getting rich off an endless flow of taxpayer dollars.

The Obama administration had stopped an egregious example of this phenomenon — the conversion of predatory schools run by wealthy Carl Barney — and warned against future such trickery, but Trump education secretary Betsy DeVos is now approving these deals, creating a celebratory mood among sharp operators in the for-profit education world.

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