Question Scenario After a two-year investigation of for-profit colleges.the Senate Committee on Health, Education, Labor, and Pensions, chaired by Senator Tom Harkin (D-lowal) issued a 2012 report-For Profit Higher Education: The Falure to Safeguard the Federal Investment and Ensure Student Success -hat criticized almost every aspect of the booming for profit college industry. The study includes statistics and anecdotes directly from internal documents of the 30 companies probed.including The Appllo Grous which runs the giant University of Phoenio.Education Management Corp, the Washington Post Company, and Kaplan Higher Education. Shares in those companies slid after the release of the report. According to the report taxpayers spent 32 tallion on for-profit colleges in the last year.but the majority of students left without a degree. The median time from start to quitting just four months. Ninety-six percent of students who went to for-profit colleges took out loans, compared to just 13% of community college students and 48% in four-year public colleges said the report. Though the for-profit cellinge sector accounts for about 13% of college enrollment in the U.S., it comprises nearly half the loan defaults. Senator Harkin said, "h this report, you will find overwhelming documentation of excetitant tution, aggressive recruiting practices, abysmal student outcomes, taxpayer dollars spent on marketing and pocketed as profit, and regulatory evasion and maniputation The APSCU, the main trade group for the industry, said the report "hwists the facts to fit a narrative, proving that this is nothing more than continued political attacks on private sector colleges and universites." The share prices of member organizations of the Association of Private Sector Colleges and Universities __ A. increased, because the report was highly critcal of their practices B. increased, because he report detailed their successes C. stayed constant, because the report did not take a clear stance D. dropped,because the report was highly critical of their practices E. dropped,because the report detailed their successes Completed: 3 of 5 [ My score: 2/5 pts (40% )

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Question Scenario After a two-year investigation of for-profit colleges.the Senate Committee on Health, Education, Labor, and Pensions, chaired by Senator Tom Harkin (D-lowal) issued a 2012 report-For Profit Higher Education: The Falure to Safeguard the Federal Investment and Ensure Student Success -hat criticized almost every aspect of the booming for profit college industry. The study includes statistics and anecdotes directly from internal documents of the 30 companies probed.including The Appllo Grous which runs the giant University of Phoenio.Education Management Corp, the Washington Post Company, and Kaplan Higher Education. Shares in those companies slid after the release of the report. According to the report taxpayers spent 32 tallion on for-profit colleges in the last year.but the majority of students left without a degree. The median time from start to quitting just four months. Ninety-six percent of students who went to for-profit colleges took out loans, compared to just 13% of community college students and 48% in four-year public colleges said the report. Though the for-profit cellinge sector accounts for about 13% of college enrollment in the U.S., it comprises nearly half the loan defaults. Senator Harkin said, "h this report, you will find overwhelming documentation of excetitant tution, aggressive recruiting practices, abysmal student outcomes, taxpayer dollars spent on marketing and pocketed as profit, and regulatory evasion and maniputation The APSCU, the main trade group for the industry, said the report "hwists the facts to fit a narrative, proving that this is nothing more than continued political attacks on private sector colleges and universites." The share prices of member organizations of the Association of Private Sector Colleges and Universities __ A. increased, because the report was highly critcal of their practices B. increased, because he report detailed their successes C. stayed constant, because the report did not take a clear stance D. dropped,because the report was highly critical of their practices E. dropped,because the report detailed their successes Completed: 3 of 5 [ My score: 2/5 pts (40% )

Answer 1

The correct answer is D. dropped, because the report was highly critical of their practices.<br /><br />The passage states that "Shares in those companies slid after the release of the report." This indicates that the share prices of member organizations of the Association of Private Sector Colleges and Universities dropped after the report was released. The reason for the drop in share prices is that the report was highly critical of their practices, as evidenced by the statement from Senator Harkin and the criticism from the APSCU, the main trade group for the industry.

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