The convenience of online programs like those offered by the University of Phoenix has led a growing number of community college students to transfer to the for-profit institution. Students frustrated by their inability to work their school schedules around their work and family commitments are more willing to pay more for the online courses offered by the university.

The California Community Colleges Chancellor's Office has studied the issue and notes that that the number of students who began pursuing education at a community college but then subsequently transfer to Phoenix has grown substantially. The number of students who had takes at least 12 credits at a community college before transferring to Phoenix has risen from 2,290 in 1996-97 to 7,986 in 2004-05.

Experts generally see three critical reasons for the development. First, the flexibility of online colleges appeals to older, working adults with families. Second, the for-profits accept almost all community college credits when a student transfers. Finally, online institutions such as the University of Phoenix offer degrees in most of the high-demand career fields, such as nursing and educational leadership.