BIDEN CRACKS DOWN ON "TRUMP UNIVERSITY-LIKE" FOR PROFIT DIPLOMA MILL CAREER COLLEGE PROGRAMS
The Biden administration has finally taken a stand against the high-debt for-profit predatory college industry. And let's be honest, these schools are as bad as Trump University, which was sued, closed, and forced to pay restitution. It's like they brought the ethics of payday lending into public education. But fear not, my fellow Americans, because Biden is cracking down on these schools like a dad with a belt.
The new regulations will cut off federal student aid to vocational programs whose graduates consistently have high loan payments relative to their income. Basically, if you're not making enough money to pay back your loans, then you're not getting any more money from Uncle Sam. This could potentially impact 1,700 programs serving 700,000 students. That's a lot of people who won't be able to get a useless degree in underwater basket weaving.
The regulations also require programs to ensure that their graduates have higher earnings than those with only a high school diploma. So, if you're not making more money than someone who didn't go to college, then what was the point of going to college? Programs that fail to meet the standards will need to warn students that they are at risk of losing access to federal student aid. It's like a warning label on a pack of cigarettes, but for college.
But let's be real here, for-profit colleges are like the used car salesman of higher education. They promise you the world, but in reality, you're just driving off the lot with a lemon. They use aggressive and deceptive marketing tactics to lure students in, like promising high salaries, flexible schedules, and easy access to financial aid. But in reality, many of these promises are false or misleading.
According to the U.S. Department of Education, for-profit colleges account for only 9% of all postsecondary students, but 34% of all student loan defaults. That's like being the kid who only shows up for the final exam and still fails. Moreover, for-profit colleges receive nearly $30 billion per year in federal student aid, which is about 20% of the total amount. This means that taxpayers are subsidizing these predatory schools, while students are left with the burden of repaying their loans.
But fear not, my fellow Americans, because the Biden administration has issued a new rule that will revoke federal funding from college programs that leave graduates with unaffordable loans or low pay. The rule is known as gainful employment, and it's like a breath of fresh air in a room full of used car salesmen.
The rule evaluates colleges based on their debt-to-earnings ratio and the earnings premium test, which measures whether graduates' median earnings exceed those of someone with a high school diploma only. If a program fails either of these tests for two out of three consecutive years, it loses eligibility for federal financial aid. All institutions that receive federal financial aid, including private nonprofit colleges and public universities, must publish information on the costs of attendance, graduates' earnings, typical borrowing amounts, and other data.
The gainful employment rule is expected to protect nearly 700,000 students annually who would otherwise enroll in one of close to 1,700 low-performing programs. The rule is also expected to save taxpayers about $5.3 billion over 10 years by reducing the amount of federal student aid that goes to these programs. It's like putting a stop sign in front of a used car dealership.
But let's not forget the real victims here: the students. The high-debt for-profit predatory college industry is a term used to describe a sector of higher education that exploits students, especially those from low-income backgrounds, veterans, and people of color, by enrolling them in programs that charge high tuition fees, provide low-quality education, and leave them with little or no job prospects and heavy student debt.
For-profit colleges have been accused of a variety of predatory practices, including misleading students about their job prospects and earning potential, pressuring students to take on loans, and targeting vulnerable students. For-profit college students have the highest debt rates of any students. According to the Consumer Financial Protection Bureau, for-profit college borrowers are four times more likely to default on their loans than borrowers from public and nonprofit colleges.
The impact on students can be devastating. Many students are unable to repay their loans, which can lead to wage garnishment, tax refund seizure, and even bankruptcy. High student loan debt can also make it difficult for students to afford to buy a home, start a business, or save for retirement.
So let's give a round of applause to the Biden administration for taking a stand against the used car salesmen of higher education. Let's hope that this new rule will protect students from these predatory colleges and ensure that higher education is a worthwhile investment for students and society. And who knows, maybe one day we'll see underwater basket weaving become a viable career path.
New rule will cut federal money to college programs that leave grads with high debt, low pay | AP News https://apnews.com/article/college-for-profit-student-debt-tuition-b4db9895af1ce6ac6737aa2dad015551
Biden administration issues much-anticipated rule to weed out high-debt colleges https://www.usatoday.com/story/news/education/2023/09/27/biden-administration-issues-much-anticipated-rule-to-weed-out-high-debt-colleges/70959657007/
Biden cracks down on vocational programs that saddle students with debt - The Washington Post https://www.washingtonpost.com/education/2023/09/27/student-loan-debt-profit-colleges/
THE DEFT DIVE
FROM BARD AI
**Deep dive: High debt for-profit predatory college industry**
The for-profit college industry has been under scrutiny for years for its predatory practices and high student debt rates. These colleges often target low-income students and students of color with promises of a better future, but many students end up with high levels of debt and no degree or a degree that is not worth the cost.
**How for-profit colleges operate**
For-profit colleges are typically private institutions that are operated like businesses. They generate revenue from tuition and fees, and they often have aggressive marketing and recruitment tactics. For-profit colleges also tend to be more expensive than public and nonprofit colleges.
**Predatory practices**
For-profit colleges have been accused of a variety of predatory practices, including:
- * **Misleading students about their job prospects and earning potential:** For-profit colleges often promise students that they will be able to get high-paying jobs after graduation, but this is not always the case. Many for-profit college graduates struggle to find jobs or are paid less than graduates of public and nonprofit colleges.
- * **Pressuring students to take on loans:** For-profit colleges often encourage students to take out federal student loans and other types of debt to pay for their tuition. However, many students are unable to repay their loans after graduation.
- * **Targeting vulnerable students:** For-profit colleges often target low-income students and students of color, who are more likely to have difficulty repaying their loans.
**High debt rates**
For-profit college students have the highest debt rates of any students. According to the Consumer Financial Protection Bureau, for-profit college borrowers are four times more likely to default on their loans than borrowers from public and nonprofit colleges.
**Impact on students**
The high debt rates associated with for-profit colleges can have a devastating impact on students. Many students are unable to repay their loans, which can lead to wage garnishment, tax refund seizure, and even bankruptcy. High student loan debt can also make it difficult for students to afford to buy a home, start a business, or save for retirement.
**What can be done**
There are a number of things that can be done to address the problems associated with the for-profit college industry. These include:
- * **Increased regulation:** The government can increase regulation of the for-profit college industry to crack down on predatory practices and ensure that students are getting a quality education.
- * **Student loan reform:** The government can reform the student loan system to make it easier for students to repay their loans, especially students who attended for-profit colleges.
- * **Increased funding for public and nonprofit colleges:** The government can increase funding for public and nonprofit colleges to make them more affordable and accessible for students.
It is important to note that not all for-profit colleges are predatory. There are some for-profit colleges that offer high-quality education and programs. However, it is important for students to do their research before enrolling in any for-profit college.
**What students can do**
If you are considering attending a for-profit college, there are a few things you can do to protect yourself:
- * **Do your research:** Before you enroll in a for-profit college, be sure to research the school carefully. Read online reviews, talk to current and former students, and visit the campus.
- * **Be careful about student loans:** Don't take out more student loan debt than you can afford to repay. Be sure to understand the terms of your loans and the risks involved.
- * **Consider other options:** There are many other options for higher education, including public and nonprofit colleges, community colleges, and vocational schools.
If you are a for-profit college student who is struggling to repay your loans, there are a number of resources available to help you. You can contact your loan servicer to discuss your options, or you can seek assistance from a nonprofit credit counseling agency.
FROM BING AI
The high-debt for-profit predatory college industry is a term used to describe a sector of higher education that exploits students, especially those from low-income backgrounds, veterans, and people of color, by enrolling them in programs that charge high tuition fees, provide low-quality education, and leave them with little or no job prospects and heavy student debt. These colleges often use aggressive and deceptive marketing tactics to lure students, such as promising high salaries, flexible schedules, and easy access to financial aid. However, many of these promises are false or misleading, and students end up dropping out, defaulting on their loans, or earning degrees that are not recognized by employers or other institutions.
According to the U.S. Department of Education, for-profit colleges account for only 9% of all postsecondary students, but 34% of all student loan defaults. Moreover, for-profit colleges receive nearly $30 billion per year in federal student aid, which is about 20% of the total amount. This means that taxpayers are subsidizing these predatory schools, while students are left with the burden of repaying their loans.
The Biden administration has recently issued a new rule, known as the gainful employment rule, that aims to protect students from these predatory colleges by cutting off their access to federal financial aid if they fail to meet certain standards of quality and affordability. The rule measures the debt-to-earnings ratio and the earnings premium of graduates from for-profit and certificate programs, and compares them to those of high school graduates. If a program fails either of these tests for two out of three consecutive years, it loses eligibility for federal financial aid. The rule also requires all institutions that receive federal financial aid, including private nonprofit and public universities, to disclose information about their costs, graduates' earnings, and typical borrowing amounts to prospective and current students.
The gainful employment rule is expected to protect nearly 700,000 students annually who would otherwise enroll in one of close to 1,700 low-performing programs. The rule is also expected to save taxpayers about $5.3 billion over 10 years by reducing the amount of federal student aid that goes to these programs. The rule is a major step toward ensuring that higher education is a worthwhile investment for students and society, and not a trap that reinforces barriers to opportunity and economic mobility.
Bing, 9/28/2023
- (1) White House issues much-anticipated rule to weed out high-debt, predatory colleges. https://www.msn.com/en-us/news/us/white-house-issues-much-anticipated-rule-to-weed-out-high-debt-predatory-colleges/ar-AA1hmMuZ.
- (2) New rule will cut federal money to college programs that leave grads with high debt, low pay. https://www.dailypress.com/2023/09/27/new-rule-will-cut-federal-money-to-college-programs-that-leave-grads-with-high-debt-low-pay/.
- (3) White House issues much-anticipated rule to weed out high-debt .... https://www.usatoday.com/story/news/education/2023/09/27/biden-administration-issues-much-anticipated-rule-to-weed-out-high-debt-colleges/70959657007/.
- (4) New Rule Will Cut Federal Money to College Programs That Leave Grads .... https://www.usnews.com/news/politics/articles/2023-09-27/new-rule-will-cut-federal-money-to-college-programs-that-leave-grads-with-high-debt-low-pay.
- (5) SHADOW STUDENT DEBT - Student Borrower Protection Center. https://protectborrowers.org/wp-content/uploads/2020/12/Shadow-Student-Debt.pdf.
- (6) Higher Ed: Protect Students from Predatory Colleges. https://democracyjournal.org/magazine/special-symposium/higher-ed-protect-students-from-predators/.
- (7) Making campuses safer - American Psychological Association (APA). https://www.apa.org/monitor/2018/10/campuses-safer.
- (8) What States Can Do to Protect Students from Predatory For-Profit Colleges. https://tcf.org/content/report/states-can-protect-students-predatory-profit-colleges/.
- (9) Preventing Sexual Assault on College Campuses: What Works?. https://www.ourbodiesourselves.org/blog/preventing-sexual-assault-on-college-campuses/.
