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Student loans and for-profit colleges: "They're worse than you think"

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Donnachaidh Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-14-11 11:18 AM
Original message
Student loans and for-profit colleges: "They're worse than you think"
http://smirkingchimp.com/thread/mike-whitney/35539/stud...

Student loans are a big business. In fact, student debt now exceeds $895 billion which is more than the total Americans owe on their credit cards. And, most of these loans are underwritten by the US government, which means that the taxpayer is on the hook when students can't repay the debt. This is a big problem, because many of the people taking out loans are not really qualified for college, so they end up dropping out of school and defaulting on their loans putting themselves in long-term debt while passing the bill along to Uncle Sam. But not everyone loses on the deal. In fact, the institutions that help unqualified applicants get loans, do quite well. After all, they're paid in full by the government. If this sounds like it might be a scam; it's because it is. All the recruiters need to do is find a credulous subject, bamboozle him into signing on the dotted line, and hold his hand for the first few weeks of the new semester. That's all it takes to net a big government payout. Here's a rundown of how it works from an article by Chris Kirkham at the Huffington Post:

"The goal, employees say, is getting starts: students who fill out the paperwork for student loans and make it through at least four weeks of their first five-week course. That is the point at which the university is able to keep the students federal aid money, regardless of whether they continue their studies. After that, according to the Ashford employees, any form of counseling drastically drops off.

There were numerous times when I enrolled students and thought, All Ive got to do is babysit them for four weeks, said a former leader in the admissions department, who spoke on the condition that he not be identified because he is still employed at another for-profit university. Id be thinking, Come on, this person is clearly not ready to go to school. But Id call you, pump you up, keep you confident for four weeks, and once I knew you completed, you were forgotten. Its easy when Im counting the money.

According to the Ashford employees, the pressure drives recruiters to enroll students who they know have little chance of success: people who openly say they have no regular access to a computer or the Internet, despite the exclusively online course offerings, and even those who acknowledge they have difficulty reading.

More at the link --
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PDJane Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-14-11 11:21 AM
Response to Original message
1. Yes.They are.
There is absolutely no reason to waste the money on tuition.
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xchrom Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-14-11 11:21 AM
Response to Original message
2. recommend
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tammywammy Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-14-11 11:24 AM
Response to Original message
3. No federal loans or grants should be available at for-profit "school". Period. n/t
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blondeatlast Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-14-11 11:47 AM
Response to Reply #3
5. Agreed--and my ex-husband is the IT biggity at one of them, nt
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Stinky The Clown Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-14-11 11:43 AM
Response to Original message
4. If there is money to be made fucking people, fuckers will be there, gleefully fucking people
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