Friday, October 20th, 2017

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New Department of Education Policy Could Hit For-Profit Colleges

For-profit colleges often paint appealing pictures of school life.Anyone who has watched television, particularly during weekday hours, or who has taken public transportation, is familiar with the advertisements of for-profit colleges. The University of Phoenix – most of its students are actually online – ITT Technical Institute, DeVry University and others offer salvation to the unemployed or frustrated, those trying to get out of debt and those trying to change careers.

Some former students, journalists and advocates, though, say that some of the colleges treat students as cash machines, saddling them with expensive loans and failing to deliver on their educational promises.

Arne Duncan, the Secretary of Education, released a proposal that would cut off access to federal student aid for those colleges who are failing their students. A college’s performance would depend on the loan repayment rates and starting salaries of the graduates.

Currently, the industry receives $26.5 billion in federal student aid funds each year.

Duncan strove to make it clear that it was not the whole industry that the government is targeting, but only a small fraction. “We want to hit the ones at the bottom, those that simply aren’t working for students. The 5 percent would frankly be the bottom of the barrel,” he told the press.

The measure might prevent some students from getting into debt over their heads; however, it might also make it harder for laid-off workers to switch careers and get out of existing debt.ADNFCR-3389-ID-19905921-ADNFCR

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4 Responses to New Department of Education Policy Could Hit For-Profit Colleges

  1. City Sylvester says:

    School loans are the last thing on your mind when you’re topped with excitement about going to a 4 year university, not to mention having the time of your life. Yes university’s are a place of learning, but they are also lucrative businesses.

  2. Surfpunk84 says:

    Fail, these colleges are screwing people so bad, i feel awful for those who fall for these scams. Colleges and private educational institutions are being so saturated by all these people who have goals of a “new life”. As a result, so many company’s are requiring more than just a 4yr degree, more and more graduates are finding it MORE than hard to get a decent job, where as 7 or 8yrs ago, having a degree was a huge deal, now EVERYONE blew all their money on one and makes no difference to these company’s.

  3. McShane says:

    Good! These ‘companies’ are nothing more then cash centers taking tax payer dollars in and forcing private debt on the back of the students.

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