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
Matt Taibbi argues in his Rolling Stone article titled “Ripping Off America: The College-Loan Scandal” that the government is the primary source to blame for today’s appalling inflation rates on increasing student debt. Additionally, he argues that the reason the tuition is so exploitative and unfair, is because it was created to benefit two groups. The first being, “…colleges and universities, and the contractors who build their extravagant athletic complexes, hotel-like dormitories and God knows what other campus embellishments” (Taibbi). Next up, the other group that gains from the current system is the government. This is because, “…the government actually stands to make an enormous profit on the president 's new federal student-loan system, an estimated $184 billion over 10 years” (Taibbi). Further, Taibbi goes onto to state that students often have no idea what they are signing up for with student loans, because not all students have access to the same information. Finally, Taibbi mentioned that “because of the poor job market, young people may have less of a chance than ever to actually get a good job commensurate with their education” (Taibbi). This means that with no degree, students have no chance, but with a degree you are forced down a road of high risk, and at the end you are likely to be left with a ton of debt.
After World War II and the establishment of Higher Education Act of 1965, the primary goal of equalizing educational opportunity to lower and middle income students became a national initiative (Mullhern et al. 2015). These initiative were provided through grants and financial aid. However, in recent years student loans have become an important part of the equation. Since the Great Recession in 2008, many states have not invested in higher education at pre-recession levels, which were already low from the previous recession (Mitchell, Palacious & Leachman). This has
Kevin Carey is direct with what he believes is wrong with for-profit universities. He believes that they do offer classes that may be a better option for non-traditional or low-income students. However, these universities are doing these while scamming taxpayers throughout the country. These universities receive millions of dollars in funding from the government in grants and are still able to make a profit, although, many students are unable to repay their student loans in a timely manner. Some personnel within these universities use tactics to convince students to apply for loans, knowing that it is not a financially intelligent decision. Not only is this borderline unethical, but many students that receive these loans default on the payments. The for-profit universities are even attempting to change the funding from the current 90/10 rule, which states, the amount of federal funding cannot exceed 90 percent of total revenue. One quarter of all of federal aid is given to for-profits, even though, they account for less than 10 percent of students. Considering this information, government funding would be better served elsewhere.
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.
One argument is that “federal student loans have robust protections in place to help borrowers who are in a tight spot”(Josuweit). Some of these protections are deferment and forbearance or income-driven repayment plans. Forbearance can be used to pause monthly payments temporarily and income-driven repayments can lower monthly payments to match the students income, costs of living, and family size. These protections help out students who do not get a high-paying job right out of college and may have to demonstrate unemployment or another economic hardship to qualify. Equally important, “the Direct Loan program plays a key role in providing millions of Americans with an opportunity to obtain a postsecondary education”(Josuweit).
In case, you are not aware, for-profit tuition is much higher than that of public institutions, and for profits receive a quarter of all federal aid while only enrolling 10 percent of all students (216). The real problem is that students of the much more expensive for-profit institutions tend to borrow a lot more money than the students of public institutions do and are often unable to repay these loans upon graduating and entering the work force. In fact, most graduates of for-profit institutions are unable to even get a job with their freshly awarded on line diplomas and therefore default on their federally subsidized student loans due to lack of income. Clifford refutes indications that the excessive amount of student debt is directly related to the cost of education, and therefore, disapproves of the Obama administration’s proposal to disallow further federal aid to any student who has exceeded a certain percentage of debt in relation to income. In spite of statistics that predict more than half of his students’ loans will enter default, he simply does not feel that it is the responsibility of
Regarding the man taking orders and flipping burgers, his name is Tim. Tim was a hardworking student, but he had average grades so he was not given any scholarships. Tim was from a poor family, so his parents could not afford to send him to college. Had Tim been able to go to public college for free he would have had a better chance at a good job and a productive life. Cases like Tim’s are becoming more and more recurring amongst America’s youth. With a degree Tim would have a better chance to get a good job to provide for him and one day maybe even a family. According to college
In the article Wolfram communicates that the federal government is spending tens of billions of dollars in providing federal aid to student that are in college, through many actions like grants, loans and tax programs. But there is still yet to be evidence that suggest that these so called programs or policies have helped to decrease student loan debt and provided an aid to those attending college. Wolfram mentions that the federal government this year has purposed that federal tuition aid on college cost will undergo a phase where federal assistance will slowly die down. Wolfram states that the federal government will try to create a legal structure
A social worker graduate from Tulane University wrote Sallie Mae an appeal to plead for a loan write-off, and“ they denied, stating that federal government regulation prevents them from writing off the balance of the loan” (Woodruff). I hope you see how extremely infuriating that is. These private companies are blaming the government, while the government does nothing for their citizens, and doesn’t punish companies like Sallie Mae. Learned helplessness is a concept in psychology, stating that someone who is subject to enough negative stimuli will eventually give in and learn to be helpless. Even given an opportunity to go free, the subject will not try to escape the helplessness, and rather embrace it. A victim of this situation clamors, “right now, there is no hope for me to achieve the American dream. I will never be able to own a home. I will not be able to save for retirement” and he continues, “please stop companies like Sallie Mae from victimizing helpless students who have been lied to by their schools and given loans they could never afford.” Schools that sometimes don’t even bear the proper accreditations to give out credits. For-profit universities in the United States receive more than $28 billion a year of federal aid. What is being done to make sure these institutions are reinvesting this money back
According to an article in (USA Today), in 2013, the government’s profit from student loans was $41.3 billion: It was $49.9 billion in the previous years. But should the government
Q1 – Understand the purpose of employment regulation and the way it is enforced in practice.
Finally, a college student is a consumer with a demand for a product, an education. The teachers are the producers. Who wants to pay thousands of dollars for something, and then be regulated on when, how, and where to get it? Nobody. Which is probably why Texas Tech has a freshman dropout rate of 21% for the Fall 1999 semester according to Roger Terry, an author of the "Fall 1999 Retention Summary" produced by the Texas Tech Institutional Research department. According to Mr. Terry, this dropout rate is one of the highest in the Big 12 Conference and is a problem over-looked by many school officials. It is true that in a job situation the
The aim of this Assessment is to demonstrate an understanding of employment regulation and how it is enforced. Other areas covered include; how to manage recruitment, manage issues relating to pay and working time lawfully and how to ensure that staff are treated lawfully when they at work. Finally it will cover managing performance and disciplinary matters lawfully.
- employee for whom a day certain is agreed upon by yee-yer for commencement and termination of employment relationship