Another political friend of the sector was former Maine Sen. Olympia Snowe. Her husband, former Gov. John McKernan, was formerly chairman for Education Management Corp. ( ECMC), which runs schools in 36 states, including The Art Institutes and Brown-Mackie College. EMC gets almost 75% of its funding from Title IV of the Higher Education Act, according to its annual report.

All this leads to CareerCollegeCentral, which calls itself the voice of the industry, to express worries about the industry's extinction due to a struggle for funding with community colleges.

The argument made by the career college sector is that it can do better for students than traditional colleges, because it is in touch with the market. Career colleges argue that they can provide better services more efficiently than public colleges can, and maybe they can.

But if all that is true, shouldn't their funding be coming from the companies hiring their students, or from the students being hired, rather than from the government?

At the time of publication, the author had no investments in companies mentioned here.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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