The reality, though, is different. Good-paying jobs are scarce – – – assuming you even finish and get the diploma. If you can’t get one of those ballyhooed jobs, you can’t pay back your federal student loan. Indeed, one report states, “10 percent of students attending for-profit programs take up 25 percent of the federal student loan budget, they account for about half of all defaults.” See “For-Profit College Practices Predatory for Women.”
In other words, the White House wants to eliminate federal money if too many of the “for profit” students default on their government-sponsored student loans. And this prospect is frightening the “for profit” schools because these loans account for the lion’s share of their revenues. At some schools, it’s up to 90 percent. See “The For-Profit College Rip-Off: Predatory Schools Take 90 Percent.”
Well, it’s about time. The industry’s finally being taken to task for what many believe are such endemically deceptive practices that one report recently concluded that, “Education Is the Last Thing on the Minds of For-Profit Companies.”
The hosing will continue until morale improves.
The ‘for-profits’ have been hosing gullible students for years with overpriced, anemic curricula for largely worthless credentials. And the loans they aren’t paying back are financed by Joe and Jane Taxpayer. See “Senate Hears Testimony On For-Profit College Rules.”
And it isn’t just the loan defaults. There’s also the albatross of delinquencies that follow students around for years. And no wonder. According to the Department of Education, the average debt for college graduates keeps going up. As of 2008, it averaged $23,200. And according to one study, one in four have trouble making their school loan payments. See “More college graduates are delinquent on repaying student loans.”
But because of the money and lobbying power of the ‘for-profits,’ once again, they are going to dodge any meaningful reform and continue socking it to foolish enrollees. In fact, on the news of the toothlessness of the new reforms, their stocks actually went up as investors expelled gaseous sighs of relief. See “For-Profit Colleges: Targeting People Who Can’t Pay” and “Softened’ Regulations Issued For For-Profit Schools.”
But the “for profits” aren’t the only ones manning the hose.
But then that’s not to say that it’s only the ‘for profits’ that should be catching heat. On March 10, 2010, I blogged about how a New York Times story on the ‘for-profits’ should have also faulted all those non-profit law schools, too. See “For-profit’ schools not the only ones luring students into debt. What about “non profit” law schools?”
And then there’s this surprising tangentially related news involving the institutional keeper of the law school flame. After conducting its periodic review of the American Bar Association (ABA), the federal panel known as the National Advisory Committee on Institutional Quality and Integrity has given the ABA only a grudging back-handed benediction. The ABA, the accrediting agency that approves law schools, will be allowed to keep doing what it’s doing, which is approving all those excess capacity law schools and overseeing them. See The Volokh Conspiracy » Could the ABA Satisfy Its Own Standards? and “American Bar Association Takes Heat From Advisory Panel on Accreditation.”
But the way they scraped by with the federal panel is drawing notice. In part, it’s believed the ABA’s problematic accreditation may stem from the fact the ABA has up till now, done little to discipline the fudging free-for-all of exaggerated —- if not outright deceptive graduation post-employment statistics being reported by its approved law schools, as the “Law schools award a degree of “BS” along with those Juris Doctorates. Also see Class action filed against law school.
But don’t expect anything of lasting significance to happen. Money, prestige and law school rankings are at stake. And anyway, lasting relief as any schoolboy knows, doesn’t come about by merely asking someone else to “pull my finger.”