Perhaps there are reasons for this that have nothing to do with money. Many for-profits have very shady marketing and admissions policies. Almost all of them have very low academic standards. Mostly their money revenue comes from student loans that have very little chance of ever being paid off. Public institutions aren't quite at this stage of immoral behavior. This is why, I presume, that the for-profits are being targeted. Teachers who fail students at for-profits tend to get fired. Their incentives to just pass anyone. Working at a community college I do get nudges to increase the pass rate but I know I'm not getting fired for failing students who don't know enough to pass.