FTC Report Warns That For-Profit Colleges Target Black Communities

Black students often end up with debt, no degree

By Manny Otiko, IVN

A new Federal Trade Commission (FTC) report warns that for-profit colleges often target the African-American community.

“Research shows that communities of color are disproportionately represented at for-profit colleges, and the FTC has alleged problematic advertising practices by for-profit colleges that involved — and at times targeted — students in these communities,” said the report titled “Serving Communities of Color.” “In University of Phoenix (a lawsuit,) the FTC alleged that the defendants relied on deceptive advertising to attract students, including specific ads that targeted Latino consumers, as well as members of the military.”

According to an analysis by Dr. Devesh Raval, an economist in the FTC’s Bureau of Economics, customers affected by for-profit schools were 64% more likely to live in a predominately Black neighborhood.

“Thousands of students enroll in for-profit colleges each year, with people of color making up the majority. Nearly half of these students default on their student loans within 12 years…