Illustration: Rebecca Zisser/Axios

For-profit universities, often criticized for recruiting disadvantaged Americans and offering overpriced degrees, saw their enrollments more than triple during the Great Recession.

Why it matters: People went back to school in droves when the job market dried up, and for-profit colleges which can be more flexible with class sizes attracted students looking for an alternative to traditional institutions. But studies show that students at for-profit universities are less likely to graduate and and more likely to have significant debt and default on their loans, compared to traditional 4-year-degree counterparts.

At their peak enrollment in 2010, students at for-profit colleges only represented 11% of the overall student population, according to NCES. For-profit institutions can be an option for those who may not otherwise have access to education.

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Data: National Center for Education Statistics; Chart: Naema Ahmed/Axios

But there are downsides of for-profit universities:

The impact: The high costs of many for-profit colleges can worsen socio-economic inequality. Minorities, women, older and low-income students are overrepresented in for-profit colleges, according to studies by Rajashri Chakrabarti, a senior economist at the Federal Reserve Bank of New York.

  • The Obama administration implemented new regulations, requiring proof of a reasonable debt-to-income ratio among graduates. It also shut down two major for-profit college chains — Corinthian Colleges and ITT Tech — which had been accused of false advertising and predatory lending.
  • Enrollment in for-profit institutions has recently leveled off, likely due to a more welcoming labor environment and the new rules, which had a "chilling effect" on for-profit colleges, Lowell Rickets from the St. Louis Federal Reserve told Axios.
  • The Trump administration is rolling back those rules aimed at abuses at for-profit schools.

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  3. States: Florida smashes single-day record for new coronavirus cases with over 15,000 — NYC reports zero coronavirus deaths for first time since pandemic hit.
  4. Public health: Ex-FDA chief projects "apex" of South's coronavirus curve in 2-3 weeks — Coronavirus testing czar: Lockdowns in hotspots "should be on the table"
  5. Education: Betsy DeVos says schools that don't reopen shouldn't get federal funds — Pelosi accuses Trump of "messing with the health of our children."

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President Trump's chief of staff, Mark Meadows, has told several White House staffers he's fed specific nuggets of information to suspected leakers to see if they pass them on to reporters — a trap that would confirm his suspicions. "Meadows told me he was doing that," said one former White House official. "I don't know if it ever worked."

Why it matters: This hunt for leakers has put some White House staffers on edge, with multiple officials telling Axios that Meadows has been unusually vocal about his tactics. So far, he's caught only one person, for a minor leak.

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