JULY 19, 2010
Like it or not, for-profit colleges are in business to make money. But that shouldn't mean they can do so at the expense of weary taxpayers.
With defaults at such schools representing 44 percent of all federal student loans, the U.S. Department of Education must find solutions to this worsening problem.
It's not far-fetched that if this situation remains unchecked, defaults on student loans, like mortgage loans, could become the breeding ground for the next financial meltdown.
Fortunately, there are signs that for-profit schools are on the radar screens of Education Secretary Arne Duncan and Congress.
Meantime, public and private colleges and universities should look closer at the booming market being tapped by for-profit schools.
There are mixed reasons why the default rate at for-profit schools is high when they serve less than 10 percent of students enrolled in higher education.
One is that too many for-profit students may not realize soon enough that the sometimes low salaries