Universities of Fraud: The Student Loan Abusers
In my earlier writings and on MMGL shows, I came down hard on ‘universities’ that are for-profit and online-only degree. I even took heat for my unwavering stance on this issue. With the public waking up to the fraud by Stayer and Univ of Phoenix, and busted Tri-Valley I feel more than vindicated on this subject.
In the last two weeks, we talked a lot about the Tri-Valley situation on MMGL shows. Here is an article that sheds more light on the default rates of student loans on the Universities of Fraud. [Via Huffington Post]
A quarter of all federal student loan borrowers at for-profit colleges defaulted on their loans within three years of beginning to repay them–more than twice the rate of their counterparts at non-profit institutions, according to new data released today by the Department of Education.
In addition, students taking out loans at for-profit schools were responsible for nearly half of all federal student loan defaults within the three-year timeframe, even though students enrolled at such institutions made up less than 15 percent of college students nationwide.
The findings released by the Department of Education come as the for-profit college sector faces heightened public scrutiny over questionable outcomes for students, many of whom leave the schools with debts they cannot repay. Average tuition at for-profit schools is nearly twice that of the in-state tuition at four-year public colleges, and more than five times the average tuition at community colleges, according to a Senate report released last year. [full article]