Philosophy
The Education Department, concerned that some students are graduating from short-term training programs with excessive debt and worthless degrees, is cracking down on the for-profit college industry.
Under a proposal to be released today, vocational programs in which a large share of students don't earn enough to pay back their loans would be required to disclose debt burdens and could become ineligible for federal financial aid dollars.
The proposal covers training programs of less than two years that provide credentials for careers in fields such as the culinary arts, medical support and automotive technology. It applies to public and non-profit institutions, but the impact is expected to fall primarily on the fast-growing for-profit college industry in which, federal data show, students are more likely to borrow and to default.
Last month, education officials proposed other measures aimed at protecting college students and taxpayers from for-profit schools that engage in abusive or fraudulent practices, including aggressive recruitment tactics.
In remarks Thursday to reporters, Education Secretary Arne Duncan said 5% of for-profit vocational programs would be ineligible for federal aid if today's proposal were in effect now.
Education officials plan to accept public comment before publishing a final rule by Nov. 1. Colleges would have until July 2011 to adjust their policies and practices.
"Overall, I firmly believe for-profit schools are doing a good job in training students," Duncan said Thursday. But a few "bad actors" are "doing a disservice" to the entire industry.
Sen. Tom Harkin, D-Iowa, who began hearings last month on the for-profit higher education industry, called the new proposal "plain common sense." But both critics and supporters of for-profit schools raised concerns about the details.
The Career College Association, which represents more than 1,800 for-profit schools, said in a statement that using the proposed formula to determine eligibility "is unwise, unnecessary, unproven and is likely to harm students, employers, institutions and taxpayers."
And critics of for-profit schools said the plan is a step in the right direction but doesn't go far enough.
The proposal has "some teeth in it (but) it isn't as strong as it should be to protect students and taxpayers from getting ripped off by career education," said Pauline Abernathy, vice president of the non-profit Institute for College Access & Success.
Trade schools...a pit of problems
- In Praise Of Community Colleges
I taught for years at a community college in Maryland and it was a wonderful experience. Older students, students with children, younger students who had experience in the real world -- it made discussions of theoretical issues much more prescient, more...
- Some Teeth Are Showing By The Government For The For-profit Colleges
"Will your degree get you a good job? US proposes test for for-profit colleges." The proposed 'gainful employment' regulations would take away a program's eligibility for federal student aid if too many of its students defaulted on student...
- Itt Under Government Observation
"Inspecting a Student Loan Spigot" by Cretchen Morgenson January 18th, 2014 The New York Times A few days after Christmas, ITT Educational Services, one of the nation’s largest operators of for-profit technical schools, reported some unwelcome news....
- For-profit Schools...for Some, Too Late
"For-profit schools, accused of preying on low-income students, are trying to lift their standards but it may be too little too late." by Diane Bartz October 22nd, 2010 REUTERS The changes that schools have made -- like scrapping open admissions and...
- For Profit Colleges And Loan Defauts
"Our view on student loans: High costs, loan defaults expose for-profit colleges" August 1st, 2010 USA TODAY When for-profit universities started popping up in the 1990s, they seemed like such a good idea. They would attract money needed to meet surging...
Philosophy
Trade schools...time for scrutiny and change
"Plan would crack down on for-profit college industry"
by
Mary Beth Marklein
July 23rd, 2010
USA TODAY
by
Mary Beth Marklein
July 23rd, 2010
USA TODAY
The Education Department, concerned that some students are graduating from short-term training programs with excessive debt and worthless degrees, is cracking down on the for-profit college industry.
Under a proposal to be released today, vocational programs in which a large share of students don't earn enough to pay back their loans would be required to disclose debt burdens and could become ineligible for federal financial aid dollars.
The proposal covers training programs of less than two years that provide credentials for careers in fields such as the culinary arts, medical support and automotive technology. It applies to public and non-profit institutions, but the impact is expected to fall primarily on the fast-growing for-profit college industry in which, federal data show, students are more likely to borrow and to default.
Last month, education officials proposed other measures aimed at protecting college students and taxpayers from for-profit schools that engage in abusive or fraudulent practices, including aggressive recruitment tactics.
In remarks Thursday to reporters, Education Secretary Arne Duncan said 5% of for-profit vocational programs would be ineligible for federal aid if today's proposal were in effect now.
Education officials plan to accept public comment before publishing a final rule by Nov. 1. Colleges would have until July 2011 to adjust their policies and practices.
"Overall, I firmly believe for-profit schools are doing a good job in training students," Duncan said Thursday. But a few "bad actors" are "doing a disservice" to the entire industry.
Sen. Tom Harkin, D-Iowa, who began hearings last month on the for-profit higher education industry, called the new proposal "plain common sense." But both critics and supporters of for-profit schools raised concerns about the details.
The Career College Association, which represents more than 1,800 for-profit schools, said in a statement that using the proposed formula to determine eligibility "is unwise, unnecessary, unproven and is likely to harm students, employers, institutions and taxpayers."
And critics of for-profit schools said the plan is a step in the right direction but doesn't go far enough.
The proposal has "some teeth in it (but) it isn't as strong as it should be to protect students and taxpayers from getting ripped off by career education," said Pauline Abernathy, vice president of the non-profit Institute for College Access & Success.
Trade schools...a pit of problems
- In Praise Of Community Colleges
I taught for years at a community college in Maryland and it was a wonderful experience. Older students, students with children, younger students who had experience in the real world -- it made discussions of theoretical issues much more prescient, more...
- Some Teeth Are Showing By The Government For The For-profit Colleges
"Will your degree get you a good job? US proposes test for for-profit colleges." The proposed 'gainful employment' regulations would take away a program's eligibility for federal student aid if too many of its students defaulted on student...
- Itt Under Government Observation
"Inspecting a Student Loan Spigot" by Cretchen Morgenson January 18th, 2014 The New York Times A few days after Christmas, ITT Educational Services, one of the nation’s largest operators of for-profit technical schools, reported some unwelcome news....
- For-profit Schools...for Some, Too Late
"For-profit schools, accused of preying on low-income students, are trying to lift their standards but it may be too little too late." by Diane Bartz October 22nd, 2010 REUTERS The changes that schools have made -- like scrapping open admissions and...
- For Profit Colleges And Loan Defauts
"Our view on student loans: High costs, loan defaults expose for-profit colleges" August 1st, 2010 USA TODAY When for-profit universities started popping up in the 1990s, they seemed like such a good idea. They would attract money needed to meet surging...