As
@Med Ed points out
-US schools may have 100 to 250 students per class all starting in the fall
-Carib schools can have plans for up to 1800 (yes, 1,800) per year. Ross goal is 600 students starting in 3 terms, SGU is 800 in 2 terms
-US school may have 100 students in a course, with multiple full-time, highly paid faculty as course coordinator and instructors.
-Off shore have 400, 600, even up to 800 -per course, with one large lecture for all taught by an instructor at a much lower rate.
As to
@Ad2b points
-US school's cost are paid on the scale in the US. Imagine the Cost of Living/Doing Business in New York
-Off shore costs in buildings, running the school, etc are much less
From a purely business perspective, the revenue stream is nearly guaranteed and presents little risk. That is, once a student is accepted, I mean accepted by the US DOE for loans, the lender sends the money to the school and the student, whether drops out or not, is responsible for the debt. There is almost no downside risk to a school. When people say the requirements for entry into these schools requires a warm body and a viable checkbook, it truly is all that is needed
SGU: just had a $750 million dollar investment from a hedge fund, after a $250 million special dividend to the founders.
The school is now valued at more than a billion (that's billion with "b") for sale. All that money made off of incoming students
Altas, Baring To Plow $750M Into For-Profit Med School - Law360
Historic St. George's University explores sale - sources
Saba: Founders were accused of fraud and not reporting income to IRS after selling the school to Prairie Capital. The founding husband absconded with some $20 million and is still a fugitive while he left his wife to be convicted in federal court.
Founder Saba Medical School on trial for tax evasion in US
Florida Doctor Convicted of Federal Tax Crimes
BTW, Prairie Capital also purchased MUA and St. Matthews forming R3 Education as investment vehicle. You can put money into this fund that also includes a metal fabricator and a wireless company.
Prairie Capital - Fund Investments
For Ross and AUC, Just to make sure that everyone understands where these school's priorities and, in fact, legal obligations to shareholders as a publicly traded company lie, here are the second quarter financial results call where the business discusses with analysts. The below is concerning Ross and AUC, which are wholly subsidiaries of DMI (DeVry Medical International), which is under DeVry's Medical and Healthcare segment, providing the largest portion of revenue and earnings for the parent holding company recently renamed Adtalem Global Education
(stock symbol ATGE:NYSE) current price of about $34 a share
DeVry Education Group (DV) Q2 2017 Results - Earnings Call Transcript | Seeking Alpha
"Suffice it to say, getting our marketing efforts right and returning our medical schools to growth is a key priority for me. These are excellent institutions and valuable institutions for our portfolio, and demand for MD programs remains very healthy, primarily due to the large surplus of students looking to become MDs and the limited spots available at schools in the U.S."
Newsflash: This just happened yesterday. The former dean of DeVry University, which less than a year ago
paid $100 million dollar fine deceptive ads to students, was just named to head the
Federal DOE unit that investigates fraud in education by a President who settled a lawsuit with New York State over his for-profit school for $25 million dollars. Is Trump University Casino Resort and Medical School really outside the realm of possibility?
These businesses are pimps, with the schools as their brothels, with mostly unknowing students who prostitute themselves to become doctors. I have no moral objection to the transaction but I do to the way that it is mostly hidden from the students and the rest in premed community.