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.

iPad Your Future

MIDDLE CLASS MAYHEM

For years now I've been reading about the assault on the middle class. It has never been more obvious than it is now. Wall Street is up and Main Street is in decline. Unemployment has been hovering at around 10 percent for far too long. The pain from middle class America is palpable. And because of a rising stock market the media reports this suffering so matter of factly.
One of the media exceptions to this is the Huffington Post. Over the past year or two I have become quite a fan of this internet journal. The heart of America is poured out daily under the watchful eyes and compassionate soul of Arianna Huffington, a Greek immigrant who has achieved the American Dream and has made it her responsibility to report on the serious consequences of its disintegration.
I recently started reading her current book(audio book) in which she attempts to raise the volume about this situation. It is called Third World America. While trying to maintain a positive attitude she never the less warns of the perilous road we are traveling down. This is not an indictment of the upper class so much as it is a warning that the destruction of the middle class could lead to a vastly different America. One in which no one is exempt from pain. It boggles my mind that so few in the media expound on this story on a regular basis.
Since I believe in grass roots movements being able to have significant impact on society, politics, etc., I have decided to create a movement which hopefully moves the conversation to the next level. Individual Americans have a profound way of expressing the situations they find themselves in far better than authors or columnists or even bloggers.
I am addressing this blog post to the American middle class. I would like to hear from you about how the economy has impacted you and your journey towards the American Dream. Please email a brief letter to me. I will make it my responsibility to reprint your letters with the hope that the ship of state can be set back in the right direction. And if I get enough of a response I will also read your letters on YouTube, every day if necessary.
Please let everyone you know of my intentions and pass on the email address. I will continue with this endeavor until there is no longer a need to do so.
Send your emails to lettersfromthemiddleclass@gmail.com
Allen Bauman

3rd World America--Ariana Huffington