For-Profit Schools Should Be Banned Essay

In case, you are not aware, for-profit tuition is much higher than that of public institutions, and for profits receive a quarter of all federal aid while only enrolling 10 percent of all students (216). The real problem is that students of the much more expensive for-profit institutions tend to borrow a lot more money than the students of public institutions do and are often unable to repay these loans upon graduating and entering the work force. In fact, most graduates of for-profit institutions are unable to even get a job with their freshly awarded on line diplomas and therefore default on their federally subsidized student loans due to lack of income. Clifford refutes indications that the excessive amount of student debt is directly related to the cost of education, and therefore, disapproves of the Obama administration’s proposal to disallow further federal aid to any student who has exceeded a certain percentage of debt in relation to income. In spite of statistics that predict more than half of his students’ loans will enter default, he simply does not feel that it is the responsibility of

Kevin Carey takes a deep look into the controversies concerning for-profit colleges. For-profit colleges have received harsh criticism from institutions because of the way they recruit new students and use the loan system to gain even more of a profit, added on to the price of schooling. Even though only 10 percent of students get enrolled, a quarter of all federal aid goes to for-profit colleges. That seems extremely unfair. Carey begins with bringing us bad news, for-profit colleges do abuse the system of student loans, however they also bring educational opportunities for those who may have not had the option to attend college.

Kevin Carey is direct with what he believes is wrong with for-profit universities. He believes that they do offer classes that may be a better option for non-traditional or low-income students. However, these universities are doing these while scamming taxpayers throughout the country. These universities receive millions of dollars in funding from the government in grants and are still able to make a profit, although, many students are unable to repay their student loans in a timely manner. Some personnel within these universities use tactics to convince students to apply for loans, knowing that it is not a financially intelligent decision. Not only is this borderline unethical, but many students that receive these loans default on the payments. The for-profit universities are even attempting to change the funding from the current 90/10 rule, which states, the amount of federal funding cannot exceed 90 percent of total revenue. One quarter of all of federal aid is given to for-profits, even though, they account for less than 10 percent of students. Considering this information, government funding would be better served elsewhere.

"A Conveyer Belt of Droupouts and Debt at For-Profit Colleges"and "The Devil and Tom Walker" may not seem to be alike at first, but as you get to read both of these exerpts a clear theme is identified. For profit colleges are not worth the financial risk, as for-profit colleges are more geared towards taking your money, as opposed to providing you with the best education it can offer.

For- profit schools usually spend $8 per student on research while 4,887 dollars are usually spend per student at private and nonprofit colleges. These colleges spend less on the classrooms, and the staff so they can pocket the money that the college may need. As a result of this, the graduates of these colleges struggle to find employment, and that causes other problems. Since these colleges are expensive so they students when they graduate will try to pay back their tuition fees but if they cannot pay it back then they are most likely going to drown i debt later in the future.

In general, for-profit schools cost more to attend, because they are run like businesses. And it definitely does not take a college degree to see that these high prices plus low income students equal greater risk of default. For-profit colleges began as family owned trade schools but over the years they have expanded into educational businesses that accept any student, regardless of their financial wellbeing or aptitude. On the other hand, traditional schools have neglected to notice the rising need for an education that is flexible and convenient. In his article “Why Do You Think They’re Called For-Profit Colleges,” Kevin Carey writes to an audience of higher education students and faculty to convince them the pros and cons of both traditional and for-profit schools using different rhetorical, organizational, and stylistic strategies.

Students not only leave college with a degree, but they also leave owing thousands of dollars. Even though having a college degree would help students get a higher paying job, that doesn’t necessarily mean they will find one. After graduation, the majority of these students do not have prospective jobs and those that do start at entry level salaries because of their lack of actual experience in their field. About seventeen percent of college students at the age of twenty-five are limited to what types of jobs they can find, some not even related to what type of degree they earned. Because of their limited job options, it’s even harder for them to repay their student loan debts.

This means that in order to have a decent job, you usually need some type of degree or training beyond a high school education. Unfortunately, in years to come, this trend toward for-profit colleges could devastate our nation’s economy. The student loan debt in the US is roughly equal to the amount of US credit card debt, they is a frightening fact because for-profit student are more likely to default on their loans (they make up 44% of all student debt defaults), which could burst our student debt bubble. This would have devastating consequences for our government, tax payers, and possibly even the global economy. If our student debt bubble were to burst, like the housing bubble back in 2007-2009, it would have the potential to plunge us into another Great Depression. That, is

After graduation, students find themselves in the daunting situation of how to pay their loans. Students accept jobs they dislike, they begin to depend on their parents, or resort to dropping out (Hart). Many student find themselves unable to continue their education so they decide either to drop out or transferred to cheaper schools, such as a community college, consequently placing themselves at a disadvantage in the careers they desire to enter. In fact, per an article written by Rachel Beckstead, “those without a college degree are twice as likely to be unemployed as those with one.” Loan debts are a steadfast threat; however, it goes beyond the present

Why Community college should not be free There are many reasons community college should not be free. First of all, if community college is free for two years commitment levels of students will drop. Also there will be less money for facilities.

Corporatization of colleges makes earning money the Administrator's main priority, not educating students. In the article “Foundations of Corporatization: Lessons from the Community College” by Juli A. Jones, she argues how corporatization of schools has many negative effects on the students, including the quality of the education they receive, and the raise tuition prices. “The funding crisis that fuels corporatization is particularly acute at the community college level; our funding is significantly below national levels, below our state university system levels, and below our K-12 rates” (Jones 1). What she means is many colleges, especially community colleges, lack the funding they need, and the colleges really have no choice but to turn to corporatization to stay afloat. The problem is that the focus of the college becomes making money and turning a profit; The quality of education students receives goes down, while the price of tuition goes

Earning a diploma, a degree or even a trade can significantly affect one's future financial status. An education-or lack thereof- can mean the difference between being poverty stricken or financially stable. College graduates earn an average of 66 percent more than non graduates and often enjoy additional benefits, including greater job opportunities and promotions.(Source: study.org) However,  according to spotlightonpoverty.org, 69 percent of students graduate from college on time, yet many graduate without the skills needed for college or work. Without an education chances of obtaining a decent paying job is slim, which can result in a life of impoverishment. "Policymakers and education leaders must implement strategies to reduce the high school dropout rate and adequately prepare high school students for college, while providing low income students with the support they need to attain a degree or credential."

That causing the students to fault on their loans. Haley Edwards states in “ But can America afford this approach to solving student debt?” Work in public service they can get loan forgiveness in just 10 years.” Public service jobs are jobs that are related to the government, these jobs allow student loan forgiveness after 10 years which is crazy because a college graduates average age is 22 and that puts them debt free by 32. Others it takes well into their middle age years to pay their debts back. Loan forgiveness lifts massive amounts of stress their shoulders. Students don’t know how to handle debt. Most students out of highschool don’t lnow what loans are and the backlash it could have on their futures. They have no clue on how to calculate interest, how long itll take for them to pay the debt back either. “ 71% of undergraduates who graduate with debt or the 1 in 7 who end up defaulting on their loans.” (But can America afford this approach to solving debt, Edwards) This statistic shows that students who are just now entering college that they don’t know anything about loans. Or they don’t get jobs that can pay their loans back. “ The

Undoubtedly, college is expensive for students because many students cannot afford to pay their tuition from their wages and salaries. According to Matthew Reed, and Debbie Cochrane, “69% of graduates from public and private institutions accrued a student loan debt with an average of $28,400 per student.” Next, the graduate will start to pay back loan with installments; as a result, the balance will accrue interest which means the student debt will increase. Regardless of employment status, a student loan has to be repaid, yet employment is not guaranteed upon completion. Many graduates struggle to get jobs because they lack the experience which is needed by the employers, so some graduates will become jobless, while others

If an aspiring college student doesn’t have the necessary funds to attend school, there is another option they could use to pay for school. Student loans are a popular choice so that the student can pay for school. While this may seem like a great option for affording school, it can be a devil in disguise for many. The New York Times reports that Americans owe over 1.4 trillion dollars in student loan debt (Kelly 1). This happens when a college student takes loans with the belief that the college degree they get will help them achieve a higher salary which will in turn will help them pay off their debt. This often isn’t the case. A student takes the loans and attends school, but does not receive the salary that they were hoping to acquire from attending school. A standard payment plan for students is to pay off their debt in ten years, but according to a study conducted by US News, the average bachelor degree holder takes twenty-one years to pay off (Bidwell 1). This is a common occurrence as well, a report conducted by The Institute for Collee Access and Success shows that in 2012, seventy-one percent of college graduates had student debt (Serrato 1). The current system that the government offers to help those struggling to afford a secondary education is a flawed program that needs restructuring.