A Quantitative Analysis of the Effects of Postsecondary Institution Conversions from Not-For-Profit to For-Profit

Abstract

This study highlights the changes that have occurred at postsecondary institutions after conversion from not-for-profit to for-profit control. Using Delta Cost Project Data and a pre-post study design with a control group of not-for-profit institutions that did not convert, comparisons are drawn. The findings suggest that institutions that convert experience greater enrollment growth, a decline in fulltime employment levels per full time equivalent (FTE) student, no change in average expenses per FTE student, a decrease in total revenue, a decrease in Pell Grants received, a decrease in tuition and fees revenue, and a decline in average subsidy per student post conversion. These findings are critical to the creation of informed policy decisions regarding institutional conversions.