Why Do You Think They Are Called For-Profit Colleges Summary

Senator Tom Harkin's comprehensive report on the for-profit college industry revealed this about DeVry: tuition for an associate’s degree is 10 times higher than at community colleges, it has a dropout rate of 50 percent (60 percent for online students) within a median of 3 1/2 months; spending per student of less than $3000 per year on education, about a quarter of what is spent by the University of Illinois; a CEO salary of $6.3 million, 46 times more than the president of the University of Illinois; and evidence of deceptive recruiting of students. At least two state attorneys general, Illinois and Massachusetts, are investigating DeVry.

Corporatization of colleges makes earning money the Administrator's main priority, not educating students. In the article “Foundations of Corporatization: Lessons from the Community College” by Juli A. Jones, she argues how corporatization of schools has many negative effects on the students, including the quality of the education they receive, and the raise tuition prices. “The funding crisis that fuels corporatization is particularly acute at the community college level; our funding is significantly below national levels, below our state university system levels, and below our K-12 rates” (Jones 1). What she means is many colleges, especially community colleges, lack the funding they need, and the colleges really have no choice but to turn to corporatization to stay afloat. The problem is that the focus of the college becomes making money and turning a profit; The quality of education students receives goes down, while the price of tuition goes

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

The goal for Not-For-Profit Colleges is to provide students with higher education and help them advance in a particular field. Not-For-Profit Colleges are traditional college such as community colleges, state universities, and liberal arts colleges. These institutions gain funding to provide their services from the government subsidy, tuition fees, and donations. All the income that are received is strictly used for institution purposes. Some examples are professors, staff, maintenance, utilities, or even computers that the school needs and student needs. All the money is given back to the institution in some way.

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.

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

In an article written by Michelle Goldberg who writes for The Nation (2015), includes the Governor of the State of Kansas in the article “This is What Happens When You Slash Funding for Public Universities.” (Goldberg, 2015). The moral issue is that the poor keep getting poorer, and struggle to qualify for funding for tuition, which would put them in a better position to increase their pay. According to an article in The Kansas City Star (2015), Kansas is not the only state affected by the increase in tuition. Community colleges have reduced the number of classes they offer (Hanna, 2015) and some states have opted to reach out to the upper crust by offering elite apartments to draw the students who have money to pay for college

"A Conveyer Belt of Droupouts and Debt at For-Profit Colleges"and "The Devil and Tom Walker" may not seem to be alike at first, but as you get to read both of these exerpts a clear theme is identified. For profit colleges are not worth the financial risk, as for-profit colleges are more geared towards taking your money, as opposed to providing you with the best education it can offer.

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.

Every college student is either getting help from the federal government through financial aid or have to take out a loan to pay for college. That is why I choose a satire video from John Oliver which is about student debt. In the video John Oliver talks about how student debt follows you for your whole life, he liked to make funny comments and make metaphors to help relate the topic for different people to understand. His main topic for this video was on for-profit colleges and how those colleges take advantage of student loans from those in low economic statues. As I listened to the video I was able to identify a theory and a concept that relate to the course content.

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

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

So it’s not that colleges are spending more money to educate students, it’s that they have to get that money from someplace to replace their lost state funding; and that’s from tuition and fees from students and families (Sanchez 1). While most institutions tried to keep costs down, some took advantage of the public perception that a high tuition means a quality education (Sanchez 2). The problems that students face now are rising tuition, increasing loans and lacking financial aid to compensate. The fastest growing income for public colleges and universities in our country is tuition. Most students must take out loans to make it through college now.

Charles Schwertner is a Texas Tribune who wrote “Tuition deregulation is failing Texas students” in December, 11, 2014 and published in Star-telegram.com website. His main audience are Texas students. His argument presents the “broken system” of tuition and fees at public universities had left many students in debt. Students’ debt accumulated and surpassed credit card debt to be a second source of debt in our country. His argument does have some flaws, but overall it really convinces me that tuition and fees at college are a big problem today.

As described earlier in this report, for-profit colleges are allowed access to federal financial aid only under particular circumstances. First, for-profit schools must meet a market test, demonstrating that a portion of their revenue comes from somewhere other than federal aid. Even though this requirement has serious loopholes, many for-profit colleges still come very close to transgressing the 90 percent limit on Department of Education revenue, so the