Is for-profit education on the edge of a cliff... or only in the trough of a business cycle?

https://www.insidehighered.com/news/2015/07/15/profit-industry-struggling-has-not-reached-end-road

As the article posted above points out, while Corinthian Colleges is no more and ITT's top execs are under indictment, other chains, such as Capella and Strayer, are prospering.

Bottom line, it's likely that this sector of the higher ed industry will restructure and redirect itself, rather than simply vanish from the landscape.

The sector has a real image problem.  And it is well deserved.  There are numerous documented instances of illegal recruiting tactics with regard to finding new students, for example.  

There are new regulations --- notably the DOE's latest iteration of "gainful employment" rules, which recently survived a court challenge by the for-profits.

There is tough competition from public and non-profit sectors of our industry, which have learned to be quite competitive in the online realm and on the ground.

According to the linked article, Capella prospers by focusing on graduate degrees and gaining a strong reputation in that niche.  Strayer has focused heavily on corporate affiliations with similar success.

Phoenix has laid off 900 employees since September.  Whether this is a harbinger of a leaner for-profit sector going forward or a cyclical correction remains to be seen.