Wednesday, May 25, 2011

For-profit colleges' risky place to spend unsecured loans

Private, for-profit schools aren’t all created equal, and students should be persistent about any they may be thinking about. There have been numerous clashes between for-profit schools and the authorities, and profit driven school attendees have the highest loan default rates after graduating. Scholars should do their research before going to, though many for-profit schools are perfectly fine.

The chance for Indictment for Donald Trump

CNN states the New York Lawyer General is investigating five businesses that were for-profit universities. One of the schools involved is the previous Trump University, the small for-profit university launched by Donald Trump several years back. It became the Trump Entrepreneur Initiative quickly though. This was as the Department of Education said that it could not say it was a school at that point. The New York Times reports that Corinthian Colleges, Bridgepoint Education, Lincoln Educational Services and the Career Education Corporation are the other schools involved. Charges have not yet been filed. They are all being investigated still.

Latest brouhaha between universities and states

State governments and the federal government are beginning to come down on for-profit universities, and some previous students are not thrilled. Some scholars say they were misled by the now Trump Entrepreneur Initiative which is why these Californian students are now suing Donald Trump. The investigation of Corinthian’s colleges consist of those found in many states. These states consist of Florida, Georgia, Massachusetts and California. The Boston Globe reports the Massachusetts Attorney General will investigate the Apollo group also which is known as the Kaplan Career Institute, operated by the Washington Post business, and University of Phoenix. The corporate parts of smaller private colleges are also typically not very stable. For instance, Alpine College in Spokane, Wash., recently closed its doors permanently in the middle of a term, leaving students holding the bag for thousands in personal loans and no degree to show for it.

Affording it is hard to do

One of the considerations one must make in choosing a university is cost. It costs a ton of money to go to a for-profit university. In just one year after graduating from college, 15.2 percent of scholars who went to a for-profit university defaulted on student loans in 2009. That is almost twice the 7.3 percent rate that public university scholars had, Reuters explains. Private, not-for-profit schools had a default rate of 4.3 percent. About half of total loan defaults come from for-profit college scholars as well. Students have not been prepared well enough for the job industry after going to for-profit universities, some say. This has made it impossible for scholars to meet loan obligations that they have. A new rule is being considered by the Department of Education. This would not allow schools with scholars that have a 35 percent or higher default rate to get federal loans for students.

Information from

CNN

money.cnn.com/2011/05/20/news/companies/trump_university/index.htm

New York Times

nytimes.com/2011/05/20/nyregion/trumps-for-profit-school-said-to-be-under-investigation.html?pagewanted=1&_r=1&ref=education

Reuters

reuters.com/article/2011/05/20/education-forprofit-idUSN2028820820110520

Reuters

reuters.com/article/2011/05/20/us-education-idUSTRE74J55O20110520

MSNBC

msnbc.msn.com/id/43130397″>MSNBC

Boston Globe

http://articles.boston.com/2011-05-17/business/29552871_1_college-access-success-college-students-schools”



No comments: