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Thu Jun 14, 2012, 06:38 PM

For-Profit Colleges Are Bankrolling Romney to Keep Student Loan Money Flowing

Source: Truthout

On April 23, 2012, The Des Moines Register reported that the average debt for an Iowa college graduate in 2011 was nearly $30,000. However, "(a)t University of Phoenix in Des Moines, it was about $50,000." This coincides with the data compiled national by the Department of Education discussed in our last article.



The Register continues on to demonstrate what students receive for that high debt. "At one congressional hearing, a career services adviser from a for-profit school talked about being pressured to call former students and persuade them to sign forms stating they were using the skills learned in school at their current jobs. One 'game art and design' student was paid $8.90 an hour working in the video game department at Toys R Us. He had incurred $100,000 in student loan debt getting his degree."

In November 2010, the General Accounting Office (GAO) issued a report based upon an investigation by undercover agents at for-profit institutions. The GAO sums up its findings in this manner:

Undercover tests at 15 for-profit colleges found that four colleges encouraged fraudulent practices and that all 15 made deceptive or otherwise questionable statements to GAO's undercover applicants. Four undercover applicants were encouraged by college personnel to falsify their financial aid forms to qualify for federal aid - for example, one admissions representative told an applicant to fraudulently remove $250,000 in savings. Other college representatives exaggerated undercover applicants' potential salary after graduation and failed to provide clear information about the college's program duration, costs, or graduation rate despite federal regulations requiring them to do so. For example, staff commonly told GAO's applicants they would attend classes for 12 months a year, but stated the annual cost of attendance for 9 months of classes, misleading applicants about the total cost of tuition. Admissions staff used other deceptive practices, such as pressuring applicants to sign a contract for enrollment before allowing them to speak to a financial advisor about program cost and financing options.


Read more: http://truth-out.org/news/item/9790-for-profit-colleges-are-bankrolling-mitt-romney-and-other-republicans-to-keep-their-public-student-loans-flowing



GOP Plan, austerity on public programs.
For-Profit colleges plan is to get rid of the competition and that
means public colleges and university.
No wonder For-Profit colleges are bankrolling the miserable
Greedy-One-Percent (GOP).

9 replies, 2566 views

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Arrow 9 replies Author Time Post
Reply For-Profit Colleges Are Bankrolling Romney to Keep Student Loan Money Flowing (Original post)
aggiesal Jun 2012 OP
freshwest Jun 2012 #1
Stargazer09 Jun 2012 #2
Laelth Jun 2012 #6
Stargazer09 Jun 2012 #7
Laelth Jun 2012 #8
Stargazer09 Jun 2012 #9
flamingdem Jun 2012 #3
aggiesal Jun 2012 #4
Smilo Jun 2012 #5

Response to aggiesal (Original post)

Thu Jun 14, 2012, 06:47 PM

1. And there it is! And the words of a man who explained these guys a while back:

Steven F. Hayward wrote: “The single largest defect of modern conservatism, in my mind, is its insufficient ability to challenge liberalism at the intellectual level…”

No.

The single largest defect of modern conservatism is that it has ruined the nation. Conservatives do not have ideas; they have interests.

Conservatives are not “thinkers”; they are rationalizers who give an intellectual gloss to their belief that an alliance of predatory businesspeople and religious extremists should rule the rest of us.

The wreckage caused by modern conservatism lies all around us, and speaks for itself: If conservatism isn’t dead, it should be.


- DANIEL ROSEN - Washington Post 10/9/2009

http://www.sodahead.com/united-states/the-best-letter-to-the-editor-ever/question-883863/?page=2

Always, always follow the money. If they open their mouth to take a position on anything, it's not for principle. It's for their own personal profit...

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Response to aggiesal (Original post)

Thu Jun 14, 2012, 06:53 PM

2. Wow

There's a LOT of money to be had by bilking students these days.

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Response to Stargazer09 (Reply #2)

Thu Jun 14, 2012, 08:15 PM

6. Not to mention "We the People."

In all likelihood, taxpayers will pick up the tab on a large percentage of those guaranteed student loans. It's the people who are being bilked (moreso than the students).

-Laelth

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Response to Laelth (Reply #6)

Thu Jun 14, 2012, 08:44 PM

7. Good point

Although defaulting on federal student loans is pretty difficult nowadays. Can't get rid of them through bankruptcy, and your wages and tax refunds can be garnished.

I'm sure people find ways to default on them anyway.

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Response to Stargazer09 (Reply #7)

Thu Jun 14, 2012, 09:10 PM

8. I hear you, but let me offer a slight correction/clarification.

It's really easy to default on a student loan--just don't pay it back.

It is very hard to escape the indebtedness of a student loan. On that we agree. These days, the Federal government pays the banks what they are owed on defaulted, guaranteed student loans and then sometimes sends the IRS after the student for the cash. In most cases, the student can't repay (neither through garnishment nor withholding of income tax returns), and in those cases the government often sells the debt to debt collectors for pennies on the dollar. "We the people" pay the loan off, and the poor student gets to be hounded by debt collectors for the rest of his or her life.

Nice system we have.

-Laelth

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Response to Laelth (Reply #8)

Fri Jun 15, 2012, 12:21 AM

9. I've read horror stories

My student loans get paid first! I'm not willing to take any chances with them.

Yes, I agree that our current system is seriously messed up, and I see it getting worse if a certain someone steals the election.

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Response to aggiesal (Original post)

Thu Jun 14, 2012, 06:57 PM

3. Good lawd somebody do something about those diploma mills!

Dumbing people down and leaving them burdened with debt

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Response to flamingdem (Reply #3)

Thu Jun 14, 2012, 07:02 PM

4. Sometimes they don't even . . .

earn the degrees.
They're just saddled with the debt.

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Response to aggiesal (Original post)

Thu Jun 14, 2012, 07:13 PM

5. A friend works for a for=profit college

and she says they are all panicking about having to now pay the piper.

Strange - they all seem to hate "government" and the regulations they should adhere to - but are first in line when the money is being given to people for education.

An industry that wants it cake and to eat it too.

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