Karla - posted on 09/20/2011 ( 4 moms have responded )
For Profit Colleges,
Paraphrasing the article:
According to this article for profit colleges such as University of Phoenix, Kaplan University, and DeVry University do not deliver. Average cost of one year tuition is $31,000 (more than most state schools.) Most students don’t complete degrees. For instance the University of Phoenix graduates less than 9% within 6 years. Former students of for profit colleges now account for half of all defaults in student loans.
In 2009 the CEO of the University of Phoenix took home nearly $42 million, in that year the president of Harvard made less than $700,000.
For profit colleges receive ¾ of their revenue from federal grants and loans. Poor students are targeted because they can get more student grants and loans. A quarter of federal student loan money and a third of Pell Grants no goes to for profit colleges.
The Department of Education approved ne rules blocking federal aid to for profit schools if less than 35% of their former students are paying down their loans. The for profits schools don’t like this.
Do you know anyone who has had experience with these colleges or do you have any opinion about the quality of education offered at for profit schools.
If they are targeting poor people to get more grant and student loan money, and are not honest about the cost, and have such a high drop out rate, and their former students do not have better jobs and aren’t paying down their student loans, than these schools and students have contributed greatly to problem of defaulted student loans.
What a colossal waste.