I think that it is not always true.

When it is true, perhaps it reveals one law of our time: "all and immediatly" and "to appear before being" and also "to believe that immediate service can substitute for a service in the long term"... under these conditions what importance for quality and higher education.

In the U.S. the student loan default rate is much higher for private for profit institutions than for publically funded institutions.

Dear @Gopinath., damage to society is irreversible. I have cited many examples of such issues, primarily in Serbia and the Balkan countries! "Modern day diploma mills have perfected just such a model. And it works. Experts who spend their lives digging into the deepest recesses of degree mills suggest that as elusive as the flow of money is, that the fake degree business rakes in over $500 million dollars a year. Sounds like plenty of people buy the message."

http://www.counterfeitdegrees.com/

earning bread and butter is ok, till it do not harm some one else. the biggest draw back of some of the business schools (personal observation) that they use to exploit the opportunity and do the business. but agreed with Mr. Perriot this is not always true

the do's and don'ts are always there, you can not make happy every one around, however maximum efforts should be directed towards what is essential. you may not find ideal situations in all business schools in the vicinity, but let us try to be realistic and ask a question that what if, these institutes would not be their as an alternative choice to the students who could not enrolled in the program of their intellectual excellence? what remains as back up?

I agree with Muhammad Ashraf, and would like to add that the vision of all universities should be to serve humanity through providing quality education, i.e., generating, applying and disseminating new knowledge through vigorous research activities. 

Agreed, please "do not throw out the baby with bath water"as they say. Parents and students should do their home work before joining or contributing to these degree mills. There are excellent Universities that do their best to educate and may be they do not do a good job of educating the politicians.

The uprising of "for-profit" businesses which call themselves "university" is sad. By focusing only on a specialized job skills set, they rob the student of the ability to study widely and deeply. The liberal arts form a strong foundation for any college course of studies. Unfortunately, students pay too much to afford an enriching course in literature, philosophy, or critical thinking - all extremely useful to make the "total person."  

I agree to this comment, but if these maintain quality also - then chances of profits increases exponentially.

Maintaining high quality is the base for sustainability, good progress and huge benefits in any business / works - and in opening research institutions and teaching universities. 

I am in full agreement with Kuldeep. Only the quality of teaching can give a strong foundation of knowledge with openness to the realities of the world...to build strong minds and to produce new ideas. Money only can reproduce clones with empty ideas...Money only does not facilitate emergence of genius. The French Writter G.Bernanos said: "Genius: 99% perspiration and % illumination" !!

It is unfortunately true that many educational institutions have turned into businesses. As it is well-known, the tuition fees in a number of countries have been increased enormously thereby denying the poor or the middle-class students from education. In some places, a student means a "money figure" so the calculation goes mostly as (no. of students X money paid by each student) without taking into consideration the other expenses that the students will bear.

Huge sum of money is collected but the managers will always talk about a "financial crisis" which prevents raising salaries of the employees. The managers will also claim that the fees extracted from the students are below what the institution expends on them. Well, I do not buy all this simply because most of the education involves "theoretical" lectures & in each lecture room, money is spent on ink markers, lighting, LCD, and possibly some cooling or warming devices. In other words, the costs are low, indeed.

After considering laboratories, workshops, and other supporting activities, if one is good at maths then the net annual profit will be found high.

Trouble is that in many countries, the scholars are really underpaid. When it comes to lavish parties or celebrations or lunches for guests, the money suddenly appears!

Yes, this is so true. In India, we have close to 4000 management schools, but not even 10 per cent of these are viable. I was told by a faculty member in one such school that the employer gives him a salary cheque, and takes half the salary back in cash; and that this practice was there in most business schools in that state. Most of such schools are run by politicians.

Yes @Debi, it is the similar situation in Serbia! "Institutions of higher education, including public and private universities, may award academic degrees to people who show substandard academic performance, but who are expected to benefit those institutions through their political influence. This results in the phenomenon known as “state capture,” when an interest group takes control over the state decision-making process for the purpose of acquiring private or party benefits. This inevitably imposes the costs of such interventions on the rest of the population."

Politics is not avoidable!

http://mises.org/daily/6844/Higher-Ed-Cronyism-in-Serbia-A-Case-Study

In fact "state capture or crony capitalism" is an old system...tribal and called gang or "mafia" well implanted in all countries.

Interestingly, India is about to pass a law welcoming foreign universities to open their campuses in India, There is some hope that this would lead to a lot of pressure on these institutions to become more professional if they want to survive. But time would tell whether that actually happens or not. 

Only the quality of teaching can give a strong foundation of knowledge and can teach well the realities of the world. Money definitely can not strengthen the emergence of genius. Maintaining higher quality at the university level increases the chances of economic benefit exponentially. 

There are trade centers which are called universities. These trade centers have a main function: to collect as much money as possible (from students tuition fees, from deductions of salaries of employees under various justifications, from donors, and from several activities). Of course, they cannot represent  themselves as businesses but will describe themselves as "offerers" of quality education to the young generations. These trade centers may collect ,e.g. 40 million $/annum from students only & may spend ~ 1/3 of the money/annum on all requirements including salaries. Each year they have a net profit of not less than 20 million $. The institution's administration repeats, again & again, that there is a financial problem. How come? Where does the accumulated money go? Why some influential persons work hard to prevent the establishment of private universities ? Is it because "they may eat part of the cake" ?

I have done this experience, I am agree with you ma'am, it is like a competition between institutions a kind of trade to earn money, no one focus on the quality of education. every one want to compete as best as they can.

Case study for your thread dear @Gopinath!

Online university sued for selling fake degrees!

Degrees Are Earned, Not Sold!

Earning a degree requires hard work and dedication—qualities that you can’t replace with money.

"There is an old saying that, “Education is the only purchase people make where they complain if they get too much for their money.” Although everyone can complain about something relative to higher education, in my opinion, the largest problem today is the decline in the level of education provided compared to 20 or 30 years ago. We, as educators, have allowed the students to determine how much education is enough in any given course. We have also, in many cases, allowed grade inflation which, to some extent, has fueled the decline in the level of instruction...

Both faculty and students have to stop believing that because a student enters college, they are entitled to a degree. We need to provide valid and interesting information. We need to grade what is appropriate and we need to admit that not everyone who enters college will earn a degree. We also need to remember that degrees are supposed to be earned and not sold..."

http://www.geek.com/news/online-university-sued-for-selling-fake-degrees-554855/

http://evolllution.com/opinions/degrees-are-earned-not-sold/

I believe that God exists because it is not impossible that all things work created by someone or something other than God ??????