DeVry Education said it would voluntarily reduce the share of money it gets from federal funding, as it looks to limit its exposure amid a government crackdown on for-profit colleges.
You read it right, up to 85% of DeVry’s revenue could be coming from taxpayers, down from 90%. How do you feel as a taxpayer about funding 85% of a for-profit, public company’s gross income, executive salaries, and advertising campaigns, and enriching its Wall Street and hedge fund shareholders, all at your expense?
In 2009, DeVry allocated 19.7 percent of its revenue, or $287.6 million, to marketing and recruiting and 16.1 percent, or $234.8 million, to profit. That year DeVry CEO Daniel Hamburger received $6.3 million in compensation, more than 46 times as much as the president of the University of Illinois at Urbana-Champaign who received $137,850 in total compensation for 2009-10. Nice work if you can get it.
The parent of DeVry University and others said it would limit the revenue that each of its six Title IV institutions derive from federal student aid to 85%, including Department of Veterans Affairs and military tuition-assistance benefits. Federal regulations allow for 90%, excluding military assistance, under the so-called 90/10 Rule.