For-profit colleges may lose federal aid

On Community College Spotlight:  The Obama administration plans to change student loan rules to penalize for-profit career colleges whose graduates have trouble repaying loans. That will send more students to the public sector for job training.

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  1. How many people would lose their jobs if the federal government pulled this stunt, closing down all the private for-profit colleges in this country? I’m talking everyone from instructors to groundskeepers. The unemployment rate would jump from 10% to 12% very quickly.

    And what about all the students? Those who already have degrees would be told their institution doesn’t exist anymore; those working on degrees would be left out in the cold. On top of that, the for-profit colleges teach students who get denied access to the traditional University system; is the Obama administration saying that these people don’t even deserve the opportunity to get *any* kind of college education? How elitist. (The Frontline documentary had an obvious elitist tone to it; “A former prostitute can get federal student loans and go to college?” How horrible!) /sarcasm

    This administration has gone beyond the pale in their attempts to tear apart our society – and rebuild it in their image. No aspect of our lives is safe at this point – with the Health Care bill passed, I even expect legislation on what we eat and how in the next few years. (The fast food comapanies are also on the radar as targets for elimination.)

    The federal government has, since 2008, already taken de facto control of the banking industry, the auto industry, and the health insurance industry. How much longer until the federal government controls every aspect of everyone’s lives?

  2. tim-10-ber says:

    The only fundamental difference between for profit colleges and not for profit is how they are funded…for profits’ have access to the capital markets, not-for profits’ access the bond market. At the end of the day both better be generating an operating profit from their core business…education or they will fail. NFP schools then have a broader community mission and that mission is funded by earnings from their endowment.

    With this being the case why isn’t Obama holding NFP schools accountable for luring in students, failing to graduate them or get them a high paying job upon graduation and having graduate struggle to pay student loans?

    Geez…the issue is the same in both sets of institutions. Why is everything that is funded with the capital markets viewed as bad and those things funded by bonds viewed as good? If this were truly the case those people who truly, truly believe this would have no place to shop, by groceries, places to live, etc as these are all for profit institutions.