Posted on 07/23/2010 7:34:22 AM PDT by reaganaut1
The Obama administration on Thursday released its controversial proposed regulations to end federal student aid to for-profit colleges whose graduates do not earn enough to repay their loans.
Since most for-profit programs get the vast majority of their revenues from federal student aid, the regulations could effectively shut down the programs whose students have the most debt and the least likelihood of finding good jobs.
The for-profit colleges have lobbied strongly against the new “gainful employment” regulations. And in a statement Thursday evening, the Career College Association, which represents the colleges, called the proposed regulations “unwise, unnecessary, unproven” and said they were likely to harm students, employers, institutions and taxpayers. The Department of Education estimates that the rules would cut off federal aid to about 5 percent of for-profit college programs, representing about 8 percent of students, and that about 55 percent of the programs would be required to warn applicants and students that they may have trouble repaying their loans.
The coalition of education groups, student groups and consumer groups that have pushed for stronger regulations said they were glad to have regulations proposed in time to go into effect next year — but not impressed with their toughness.
“We are particularly concerned that programs could continue to profit from federal student aid when half their students with loans can’t afford to pay the principal,” said Pauline Abernathy, vice president of the Institute for College Access and Success.
(Excerpt) Read more at nytimes.com ...
I bet loan repayment rates are correlated with academic achievement before entering college, as measured by grades and SAT/ACT scores. Subsidized loans should not be extended to weak students. This would have a "disparate impact". Tough.
Dang! These people have their NOSE in everything, don’t they?
These rules should also apply to state colleges and univesities and not just the private ones.
Why are “Queer Studies” majors being brought into universities? I would think a “Queer Studies” major would not only pay nothing, it would require getting AIDS as a homework assignment.
Now we see the results of 0bama’s takeover of the student loan business. If Barry controls the money he can dictate what you study!!! Since the only jobs he seems to be interested in are teachers and the NEA, guess who gets the financial aid. Why are we not up in arms about this!!!!
Any major with the word “Studies” at the end of it usually pays nothing unless you go into academia. Will our kenyan overlord deprive all those Black Studies majors of their funding? Lord knows there’s a shortage of those professors in the country.
“Yes no student loans should be given to people majoring in silly liberal arts majors where it is almost certain that they are not going to find a good enough paying job to pay for student loans in timely manner.”
Exactly! You go to a public university for four years, get a liberal arts degree and you are qualified to work as a manager in the fast food industry which will barely pay you enough to live, much less pay back a student loan.
But, I bet those stupid “liberal arts” degrees are exempt from this consideration!
This is nothing more than Obama’s attempt to affect/set pay-rates in the “free market.” If he can get people to demand higher pay for their “degree” then he gets it both ways - limit for-profits and force the markets to pay more than they can afford! Which will cause (like ALWAYS) “unintended” consequences!
There isnt any guarantee that a law graduate can pay back loans. Sounds a little communist to me to tell people what they can/cant major in.
Especially if they go to FSU. ;)
There is a much simpler way to approach this; only provide student loans to students pursuing degrees for identified employment shortfalls (e.g., nursing, engineering, compurter programming, plumbing etc.). I know this would destroy the liberal arts colleges, but what the heck, do you want somebody to fix your car or recite poetry to you?
My nephew just graduated from The Peabody Institute of Johns Hopkins with a degree in “Voice”. He’s getting ready to start graduate work at NYU in “Vocal Performance/Musical Theatre”. He is currently 100K in debt and his father tells me grad school may double that. Well there’s a house he’s going to have paid for that he’ll never live in.
I went to the univ of USMC at San Diego when I was 16 y.o.
Semper Fi.
Mixed feelings here. I hate to see Obama control what can be studied and what can’t be studied. Considering how the student loan program itself has inflated the cost of college almost EVERYBODY needs student loans these days. Also if you try to “work your way” through college you’ll find your courses expiring before you can manage to earn enough to graduate. Also, I don’t blame students who go into liberal arts majors that don’t pay as much as I blame high school and college professors who promote the “do anything” and “be anything” fantasy. On the other hand no one knows what future job markets demand. I remember when there was a glut of MBAs and lots of unemployed MBAs after it was the hottest degree around in the 80s.
Ouch! LOL!
You're all arguing the wrong point. Taxpayers shouldn't be giving loans at all. Banks should issue college loans and decide for themselves -- based on credit-worthiness and potential future earnings -- if it's a good risk.
Making up government regulations that some of you like and some of us don't is not the answer.
The fact is that education is already available free—via public schools through the 12th grade, the local public library, and the Internet. Connections, vocational training and somewhat iffy educational certification are available for a fee from colleges and universities.
They are going after places like DeVry, that cost about 2K per semester and actually has degrees that will help you get a job, like Engineering Technology, rather than some 30K liberal arts college that will give you a useless degree in ‘feminist studies’?
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