The Education Department has posted its proposed “gainful employment” rule. The draft rule, released last night, would cut off aid to programs at for-profit colleges whose students have the highest debt burdens and lowest loan-repayment rates.
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6 Responses to Education Department Posts ‘Gainful Employment’ Rule
briget123 - July 23, 2010 at 4:26 pm
I think you have to work in these industries to fully grasp how “wonderful” this is. I am relieved that someone has come to his/her senses. To gain insight on how these for profits operate, look to the owners, who themselves are just private investors who see nothing else but, what was the classification: “For Profit”. Sure, the educational system for the most part, is experiencing some level of deterioration. Sure, my liberal arts college did not prepare me for a real job, but I was able to engage in meaningful learning, live up to certain expectations; and yes, pay off by tuition because it was affordable. These poor students in for profit cannot boast the same, at least not 90% of them. I hope those who really care keep the fight alive. Seven years in that type of industry will reveal the blatant misuse of our tax dollars in the name of mis-education. Most of the grads cannot write a complete sentence, to say the least. This is a healthy start to something wonderful.
rachel312 - July 24, 2010 at 6:49 am
What happened often about 15 years ago when I worked in social services was that for-profit recruiters would get young naive people, usually single moms in their early 20s, and get them to sign up for courses “to get a job” and then take all their available Pell Grant and state scholarship monies, and then offer them low quality courses with poor counseling support that they couldn’t get through. These places obviously had formulas that calculated tuition pay in against drop out rates, where the drop out was considered good (tacitly at least, if not straight up). Don’t know if the situation has changed — imagine it hasn’t. Hope this “market” that was not really being served will redirect itself and find enough gumption to go to real two year colleges and get through.
performance_expert2 - July 25, 2010 at 5:33 pm
Rachel, exactly what I see with a neighbor: “young naive people, usually single moms in their early 20s, and get them to sign up for courses “to get a job” and then take all their available Pell Grant and state scholarship monies”Except, add taking on debt to that.Neighbor is so depressive now they rarely check their mailbox. I note it is stacked with mail, most likely lots of bills.Long term education debt is the bane of the USA. Clearly the online schools are set to clean-the-clock with a smooth sell and get the target loaded with debt that arrives easily from the fed.
zagros - July 26, 2010 at 6:21 am
I suspect Briget123 was an in-state student at a state-supported university. In that case, isn’t is a “blatent misuse of our tax dollars in the name of miseducation” as well? The “affordable” tuition was only affordable because of the massive state subsidy that is given to all in-state students. Why don’t we crack down on state-supported schools with similar records or worse, which fail to graduate students at all? Chicago State University which has a 4-year graduation rate of 2% — that’s right 2%! Sure, it rises to a much better (ha!) 16% after six years ( http://www.chicagopublicradio.org/Content.aspx?audioID=33851 ) but one really has to wonder about the benefits that society receives from an education system that fails so miserably even in the “public sector” . . .We should stop making profit a dirty word and instead focus on the real problem: poor outcomes. Why target just the for-profits when there are not-for-profits that have similarly poor outcomes and which try everything to get students to come including “open admissions” when these same schools lack the support mechanisms help these students succeed?
salmacis - July 26, 2010 at 2:03 pm
Stop this ridiculous war, organise a proper progresssive tax system that fully includes our massive corporate wealth, use that to properly fund a fully accessible, for life, public higher education system, then close these ‘for-profit’ vultures down.(and yes, you can substitute “healthcare” in that sentence for “public education” and the same argument applies). Despicable
pmatylonek - August 18, 2010 at 9:25 am
No one can tell me that a $30,000 a year private college has degree programs that can help students earn more income after graduation than the graduates from many in the for-profit sector. At the very least, many for-profits offer skill based training that enhances employability. This rule should be applied to ALL colleges, and not just the schools in the for-profit sector.