Finally, effective action against for-profit “higher education” ripoff

CorinthianCollege_042625_AP

Under new regulations that take effect today, colleges that want to be eligible for federal student-loan programs will have to document that most of their graduates are making the minimum amount of money that would be needed to repay those loans.

That doesn’t seem too much to ask. It protects the federal government and the taxpayer from making loans that can never be repaid, and it protects unsophisticated students who would otherwise get so deep in debt that they can never dig themselves out. But here’s the rub: According to the Department of Education, some 99 percent of the so-called “schools” affected by the rule will be for-profit businesses that have been using the student-loan program as a honey pot to enrich themselves, leaving their students — including former military members — uneducated and unable to repay the loan.

And those for-profit colleges have acquired friends in powerful places.

In many cases, those colleges have acted as predators, treating students as just a mechanism for extracting billions of dollars a year from the federal government while offering little in terms of education. Such schools don’t give a damn whether their incoming students are qualified or can do the work; they also don’t care if the students graduate or get a job afterward. All they care about is whether they can get those warm bodies qualified to tap into the student-loan program and get the gravy flowing.

Some of the numbers are pretty jaw-dropping. For example, a Senate investigation found that in 2010, such schools spent an average of 22.7 percent of their revenue on “marketing, advertising, recruiting and admissions” to bring in more students through the turnstiles, but just 17.2 percent on educating those students. And according to the Department of Education, some 72 percent of for-profit career programs produce graduates who make less than high-school dropouts.

All that, and it’s financed almost exclusively by the U.S. taxpayer. In 2013 alone, for-profit schools collected $22 billion in federal tuition assistance, and while students at such schools account for just 11 percent of student loans, they account for 44 percent of defaults.

It’s a scandal, and the government shares in the blame. According to experts, many of the problems can be traced to a deregulatory action by the Bush administration that for the first time allowed schools to pay recruiters based on how many students they successfully enrolled and got signed up for student aid. The more students they signed up, the more money they made, so naturally they began to drag in people off the street to sign up. It was repeat of the mortgage scandal, just in another setting.

Even now, Republicans in both the House and Senate are pushing legislation that would undo the new rules. Proposed budgets in both the House and Senate would strip the Department of Education of the power to enforce them. Marco Rubio, Jeb Bush and other GOP presidential contenders have condemned the rule as well, with Bush calling it “a sledgehammer to the entire field of higher education.” (Mitt Romney was also an enthusiastic defender of the industry, which backed his campaign.)

Some of that support probably reflects an ideological preference for private enterprise, although it’s beyond me how an industry that relies on the federal government for almost all of its revenue can be considered private enterprise and off-limits to regulation. I also have a hard time understanding how a general preference for private-enterprise solutions becomes a willful blindness to the grotesque, wasteful excesses that such solutions can sometimes produce.

Finally, even if you believe that the government has no role in protecting students from such scam operations, at the very least government shouldn’t be a willing, knowing accomplice to fraud. Is that too much to ask?

Reader Comments 0

697 comments
postcub
postcub

There are a lot of people I know that go to these schools.. who take out loans..  who then use the loan money for living expenses... then do not go back to school because they run out of $$$.


These people should not be going to school at all. OR they should not be given the $$ in the first place and the university should just hold the money for them.

LeftisnotRight
LeftisnotRight

reading along and then "bush's fault" killed it......

Numbers_R_Us
Numbers_R_Us

Would the Donald Doom's offspring be the Daffy Ducks.  Inquiring minds.

Numbers_R_Us
Numbers_R_Us

The Doom is getting upset with all this negative talk about his heros, especially the Donald.

KUTGF
KUTGF

I am a little confused by our RWers.... first they tell us all them illegals are coming here cause we are the bestiest....and then they say that all sorts of people want to leave because....Obama voters?  And then they say they looked into leaving? 

bu2
bu2

Effective action against the government ripoff.  Ellis found guilty.

Doom Classical liberal
Doom Classical liberal

josh duggars,


bristol palin,


Rush Limbaugh


Donald Trump


Progs and they obsessions. Sheesh. 

JamVet
JamVet

Home | Blogs | Ballot Box | Presidential races Ballot Boxicon Ballot Box feed June 26, 2015, 02:56 pm Jindal: 'Let's just get rid of the court'

By Mark Hensch

48.5K2.5K19 2140

Gov. Bobby Jindal (R-La.) condemned the Supreme Court on Friday following its ruling legalizing same-sex marriage nationwide.

“The Supreme Court is completely out of control, making laws on their own, and has become a public opinion poll instead of a judicial body,” the 2016 contender said in a statement.

“If we want to save some money, let’s just get rid of the court,” Jindal added.

fedup52
fedup52

@JamVet He is trying make a lot of noise and nobody is listening.

KUTGF
KUTGF

One of Josh Duggar’s molestation victims is planning to file a lawsuit against the reality show star and former anti-LGBT activist. ...

A legal expert quoted by InTouch said victims would still be able to file a civil suit against the “19 Kids and Counting” star under Arkansas Code Annotated Section 16-56-130 – which allows civil action when a sexual abuse victim starts to experience the effects of the abuse years later.

A lawsuit would almost certainly force Jim Bob and Michelle Duggar to reveal what they knew about their son’s pattern of sexual abuse and any actions they took to cover up his actions.

“All the church elders who knew about this will have to be named,” a source told the magazine.

The legal expert told the magazine that the couple would not be able to invoke the Fifth Amendment because the criminal statute of limitations has expired for any crimes related to the alleged cover-up.

_________________


Interesting twist. 

Dusty2
Dusty2

Don't worry about Weiner.  She can't cut the mustard.


Anyway, I am worried because all the policy makers are out of Washington at the moment.  Valerie Jarrett is in Atlanta patting voters on the back.  Mrs. Obama is at Girl Scout Camp.  There's nobody left to make decisions. 


The president?  Come on.  We can't mess up his golf game.  Good grief!!   Climate?  He said  the climate was just fine if he makes a hole in one.   Quiet now!  FORE!

fedup52
fedup52

@Dusty2 Your buttt really hurts if you have to lie like that.

josef
josef

LENIN


Hie thee upstairs...your input will be needed/// LOL

Doom Classical liberal
Doom Classical liberal

"For example there is only ONE political party that still denies Climate Change."


Pronouncements on climate change going beyond their scientific expertise or competence is most certainly a prerequisite for being a prog blog scientist. When it comes to the climate change debate and many other topics the progs are often wrong but never in doubt. 

honested
honested

@Doom Classical liberal 

So identify the Climate Researchers who still cling to the hope that their chances of wealth from the hydrocarbon industry outweigh the fate of the biosphere?

Hedley_Lammar
Hedley_Lammar

@Doom Classical liberal Pronouncements on climate change going beyond their scientific expertise or competence is most certainly a prerequisite for being a prog blog scientist.


Oh the irony. 


It is the GOP politicians with ZERO scientific expertise that continue to tell the Scientists they are wrong. Hubris

Doom Classical liberal
Doom Classical liberal

@fedup52


Another accusation of a lie from a guy who once complained that cons had called him several names on the previous thread and who, when asked to provide just one of the insults, could not do so. Too funny!

Doom Classical liberal
Doom Classical liberal

@Numbers_R_Us


I'm not the one claiming the Earth is warming up catastrophically. The onus is on you guys to prove your chicken little alarmist scenario. To date you haven't. 

honested
honested

@Doom Classical liberal @Numbers_R_Us 

The case is 'proven' in the classical scientific sense.

Only the misleading outlier 'deniers' (with a financial interest) don't 'believe' it.

Why give credence to people who ignore the truth.

Numbers_R_Us
Numbers_R_Us

The Donald has been Dumped by Macys.  Will he sue them for millions as well.

fedup52
fedup52

@Numbers_R_Us I hope so.  There are a lot of under employed lawyers looking for work.

td1234
td1234

IMHO the parents are to blame for all the millennial s wanting to leave the country. They have raised a bunch of unrealistic pansies that believe everyone should get a trophy for just showing up and they all should be managers with 6 figure salaries just because they decide to show up.  

honested
honested

@td1234 

You know where not to let the door hit you on your way out.

Doom Classical liberal
Doom Classical liberal

I see that hedley and lenin are getting along as usual- like oil and water. Kinda interesting to watch 2 guys on the left so vehemently disagree. 

Doom Classical liberal
Doom Classical liberal

Visual Cortex, 


Interesting paper you posted earlier. Had to take some calls and now that I'm back I read a little bit of the paper and may find the time to read more. I like the main conclusions that I've read so far- that subsidizing very low end students doesn't have much of an impact but that subsidizing higher end students does in fact drive up tuition costs, much as I've suspected all along. 


"What are the Main Lessons? The main lesson from this first refinement is that aid targeted to low income students (such as the Pell grant and subsidized Stafford loans) kink the demand curve, while universal (or near universal) aid (such as unsubsidized Stafford loans and the education tax credits) shift the entire demand curve. These programs therefore have very different implications when it comes to their impact on tuition. 


For policy makers, the key point is that financial aid that is restricted to low income students is much less likely to be captured by colleges, and will therefore be more likely to succeed in making college more affordable and therefore accessible (for low income students). In contrast, universally available programs are more likely to simply fuel tuition increases and therefore more likely to fail to make college more affordable."

Jefferson1776
Jefferson1776

Advanced Online degrees = raises in some circles, don't matter if you learned anything.  How do they know if you cheated ?

Dusty2
Dusty2

Who is worried abut the less enlightened that want to leave the USA?


There are millions hanging around the border that want to get inside.. 


SWAP OUT DAY! We might be better off in the loyalty account.


We are already broke so........

Wena Mow Masipa How
Wena Mow Masipa How

@Dusty2

I'm more concerned with the anti-intellectualism and the anti-enlightenment that is so pervasive within our very own GOP.

Hedley_Lammar
Hedley_Lammar

@Wena Mow Masipa How @Dusty2  I'm more concerned with the anti-intellectualism and the anti-enlightenment


Me as well


For example there is only ONE political party that still denies Climate Change.


The American GOP. Now is it possible all those Bubba's have it right and the Scientists and the rest of the world have it wrong


Highly unlikely. 


I mean this is a party that Put Inhofe in charge of the Science and Public Works committee. He also happens to think the Bible and snowballs disprove Climate Change


Folks like this cant and wont be taken seriously.