House Quashes Rules On Student Debt at For-Profit Colleges

House Quashes Rules On Student Debt at For-Profit Colleges

ONCE AGAIN REPUBLICANS IN THE 'HOUSE' TAKE THE SIDE OF SCHOOLS THAT EXPLOIT THE MIDDLE CLASS AND LOW INCOME STUDENTS.

You've all seen the late night TV ads for colleges(formerly trade schools) that advertise their programs for great jobs in the industries of the future such as "medical bill", "pharmacy assistant" or "IT Specialist". They claim that these jobs will secure a good future for those students that want to improve themselves but don't qualify for a 4 year or community college.
In an effort to add consumer protection to these claims the Department of Education and the Obama Administration proposed disclosure legislation called the "gainful employment rule". This would allow the DOE to cut off Federal loan funding for those programs which did not actually provide a proven career path as promised. You see most of these for profit schools make most of their money from the tuition secured by Federal student loan programs offered to students trying to improve their future. Experience has shown that some of these programs--not entire schools--do not provide the education needed to get a job that pays well enough to provide for a good future. And since these students are burdened with thousands of dollars of student debt they eventually default on these Federally insured loans which taxpayers have to pay for. The default rate on these loans is significantly higher than for the not for profit colleges and yet the for profit colleges can make up to 90 percent of their profits from these loans. Additionally tuition costs at these schools is approximately twice as high as a 4 year school and 5 times as much as a community college.
The Republicans in the HOUSE and some Democrats have come down on the side of the for profit schools which have-by some coincidence-increased their lobbying efforts in Congress. This is a very cynical attitude about education and improving the employment capabilities of marginal but ambitious students.
The HOUSE has already done the dirty deed but that doesn't mean you can't call your Representatives and tell them how you feel. The Senate has not done anything yet so there may still be some time to have them revitalize the "gainful employment rule"--that is unless you look forward to helping out the for profit schools at taxpayer expense--again. Read the full article in the Huffington Post.

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