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<p>One of the negatives of the “for-profit” college model or even non-profits which follow the “student is a customer” idea is it creates a strong disincentive to flunk or give bad grades to students for fear said student will be lost as a customer because of being flunked out or him/her opting to drop out. Rather than risk losing a tuition-paying customer, many such institutions have resorted to diluting the rigor/quality of work required and/or giving higher than merited grades so said students would continue to be a source for tuition payments. </p>
<p>In some of the cases I’ve read about, what they end up doing with students with pell grants/student loans isn’t too far removed from what some Division I universities used to do to their student athletes…use up their money/talent for institutional benefits and then leaving them educationally high and dry once that money/talent’s all exhausted.</p>