Tim Holt wrote a terrific post a while back on why the business model is not right for education. He sent it here in a comment.
Tim is a science teacher in Texas.
He points out in his post that many new businesses open every year, and almost as many businesses close.
It’s astonishing to think of the businesses that were once household names–like Polaroid, Eastern Airlines, Pan Am, Woolworth’s–that are gone. Business works that way. New ones open, some make it, some don’t. Old ones die off. Investors learn to live with churn, instability, a certain amount of turmoil.
Turmoil is not good for children. Nor is instability.
Diane Ravitch's blog 
In what rational world do we hand over our education tax dollars to a private corporation and cede all control over its disposition?
The one that provides Pell Grants to students at Harvard, Princeton, Stanford, and the University of Chicago?
You may have something there although since there is a maximum amount available, I would like to see if students who attend these elite schools are receiving the max more frequently than students at less costly schools. I would also like to see how much money the prospective schools make available in financial aid packets. I’m thinking on my feet here, so be gentle. I do believe that we should be opening doors to deserving students to top schools, but I’m not at all sure how.
Actually these top schools often lower the cost of tuition based on the federal government’s calculation of expected family contribution.
This has had the interesting effect of making Harvard more affordable for a low income student than the local public university. The trick, of course, is getting admitted to Harvard.
We’re starting to see principals leaving broken down charter schools very much like CEO’s with golden parachutes as well. With taxpayer money to boot!
Turmoil may not be good for kids, but churn is good for ed privatizers. That’s the agenda, don’t forget.
Follow the money trail. The trend in public and higher education is to outsource and privatize. The federal government is also in the “business” or privatizing. Think for-profit prisons. When we use a business model in education, we are assuming that schools make a profit. Schools should ALWAYS be non-profit entities. They are schools. Their primary goal is educating. I have been appalled for over 20 years with the business model in education. I teach students, not customers.