For-Profit Colleges Case

Danielle Douglas- Gabriel said, ‘' it's difficult to make any assessments about the value of for-profit graduate degrees without any sense of the path students take after leaving the programs. Still, the amount of debt that students incur in some for-profit graduate programs is astonishing''. Clearly, Danielle is stating here that the programs in for-profit schools tend to have very, very high prices for their programs, which maybe are outraged prices compared to community colleges prices. Danielle also said, ‘' Graduates students borrowed the most amount of money, $756 million, to attend Walden….''. Looking at these numbers is a very big an astonishing number just for students to attend one school, so now imagine multiplying that to the other for-profit

This means that in order to have a decent job, you usually need some type of degree or training beyond a high school education. Unfortunately, in years to come, this trend toward for-profit colleges could devastate our nation’s economy. The student loan debt in the US is roughly equal to the amount of US credit card debt, they is a frightening fact because for-profit student are more likely to default on their loans (they make up 44% of all student debt defaults), which could burst our student debt bubble. This would have devastating consequences for our government, tax payers, and possibly even the global economy. If our student debt bubble were to burst, like the housing bubble back in 2007-2009, it would have the potential to plunge us into another Great Depression. That, is

Kevin Carey takes a deep look into the controversies concerning for-profit colleges. For-profit colleges have received harsh criticism from institutions because of the way they recruit new students and use the loan system to gain even more of a profit, added on to the price of schooling. Even though only 10 percent of students get enrolled, a quarter of all federal aid goes to for-profit colleges. That seems extremely unfair. Carey begins with bringing us bad news, for-profit colleges do abuse the system of student loans, however they also bring educational opportunities for those who may have not had the option to attend college.

For-profit colleges target veterans because G.I. Bill was given to the veterans by the government, which helps veterans pay for their colleges’ tuition, up to $21000 a year. Also, veterans must be looking to seek degree and trying to get a good job after they get out from the military. So, that’s also one of the reasons for for-profit colleges to recruit them.

The federal government in July of 2015 signed a bill authorizing the “gainful employment rule” it was supposed to help alleviate one issue that was happening with for-profit schools, it dealt with people not receiving adequate income to pay their debts after job placement, even with their degree. The rule requires the school to prove the loan to income ratio meets a set standard, “The rule is expected to cause 1,400 programs, 99 percent of them at for-profit colleges, to be put at risk of losing eligibility to receive federal student aid.” (“Gainful-Employment Rule Survives For-Profit Group's Court Challenge.”) This bill was enacted but may now be causing a completely different issue. The University of Phoenix is now going to drop most of its

In 1976 the University of Phoenix was opened by John Sperling. Today this is still one of the the many for profit learning institutions, but at the time there was nothing new about for-profit colleges. These colleges have been around since the colonial era, and they were funded by entrepreneurs which in their time they were usually the high ranking clergymen. During the colonial era there were not enough places of education for everyone to learn, so these entrepreneurs created for-profit colleges, and they are still here today.

Now all types of institutions - public and private, two year and four year, non-profit and for-profit-are vying for the same pool of students, public funding, research grants, and prestige. In the process they are creating a fierce competition that is slowly chipping away at higher education’s commitment to servicing public needs. (Couturier, 2005, p. 87)

We have not been able to contain the ever-rising cost, simplify needlessly complicated financial aid forms or protect lower-income aspirants from the for-profit colleges that want to fleece them. Then there are all the media stories questioning the worth of a college degree.

Student debt has surpassed credit-card debt in the U.S. and reached $1 trillion, a nearly 50% increase from four years ago. As I discovered in my recent Senate committee investigation, more than a quarter of federal financial aid goes to for-profit colleges, yet nearly half of the students at these colleges drop out within four

It is important to understand that many students borrow big amounts in federal government loans to pay for high tuition. Statistics show that the for-profit sector has the highest numbers of defaults among all colleges (Comparison of FY 2011 2-Year Official Cohort Default Rates to Prior Two Official Calculations) as the tuition in proprietary colleges is higher than in other schools. However, the government cannot completely ban for-profit colleges from operating, because some of them provide flexible and valuable educational programs and schedules that meet demands of many working students.

In order to have a decent job it is believed that one must attend college and submerge with a degree. It is exactly why most people in the states pursue higher education, a key component to possess financial security. The task at hand has become a challenging achievement, now more than ever, as a result of skyrocketing tuition cost. It causes students to take out massive loans which, at times, cannot be returned and therefore creating billions in debt for the United States. The idea that student loans are putting this country in massive debt motivates our government to consider granting free tuition for public college. Therefore, leading to this discussion on why the federal government should allow free college tuition and the effects and consequences of doing so.

“The only way to make an exceptional living in life is to go to college,” I heard a thousand time’s during High School. Thousands of students graduate and apply to Universities’ and wait to see if they are accepted or not. Some attend For-Profit college’s and other’s go to Non-profit schools. But, what come’s with admission is tuition, that is a requirement to be paid each semester for a student. The price of tutu ion has risen excessively throughout history. What happened to the cost of education? Why is tuition rising, have schools become a business rather than an institution, what is more, significant money or graduation to these schools?

In today's society colleges take the easy route in order to make it easier on themselves when in reality they are hurting the students and in doing so damaging the work force at the same time. Colleges set the students up for failure in numerous ways. From finically, socially, and not properly preparing them for the real world. Colleges are solely responsible for these problems and it is up to them to fix it. The statistics and facts are their to prove these beliefs and it's about time changes are made to protect and aid the students.

federal aid. When focusing on these connections we find not only parasitic relationships and borderline abuse but also a

By joining forces, consumers are able to gain the legal representation and evidence they need to make their case. Go-it-alone clauses within enrollment contracts prevent students and former students from being able to seek resolution of their complaints by teaming up with others. Since students or former students who must pursue their complaints individually are much less likely to do so, prohibiting group action enables worse behavior by