Actually I kind of agree, why are tax dollars being spent to subsidize the education of people (50k -100k) etc to get jobs that will probably not pay them much more than minumum wage when they graduate?
The schools can exist, but why should tax dollars be subsidizing educations with such little cost to benefit?
Sorry, but the proposed gainful employment rules make some sense. The only schools who are going to lose their funding are those who take in a higher rate than average of student loan dollars, have very high student loan default rates, and very high loan to job salary figures.
Bottom line: taxpayers shouldn’t be subsidizing loans at schools where students are borrowing out the nose only to find that they cannot get a job and pay back the loans. One can argue that taxpayers shouldn’t be subsidizing any student loans, but if we are going to cut them, we should start cutting where they are least likely to be paid back.
Note: these regulations appy to ALL schools, not just for-profit schools. The for-profits are making the most noise about it because they know it will hit them the hardest, as their students default at an incredibly high rate.
Yep. These “schools” are really just pipelines to federal loan dollars. The school gets the money, the student is left holding the bag.
Actually I kind of agree, why are tax dollars being spent to subsidize the education of people (50k -100k) etc to get jobs that will probably not pay them much more than minumum wage when they graduate?
The schools can exist, but why should tax dollars be subsidizing educations with such little cost to benefit?”””
Let’s look at this problem from another angle entirely.
Getting a ‘student loan’ is another perk that kids are getting hooked on these days.
They don’t want to actually WORK- they want to ‘have a great summer’, & they spend money in ways that most of us who paid for all our own way thru our college courses never did.
How about making a kid pay for their own college- with work or family funds- for the basic degrees. ONLY give graduate students access to paxpayer & bank funded ‘student loans’.
It might take a person 6 years to get a 4 year degree, but IMO, they will have a much greater appreciation of the success of their efforts in the long run.
I know a woman who is in her late 50’s.
She got student loans to go to college & law school. One rumor says she could not handle the intensity of the workload as a new member of a legal staff & quit. Another rumor says she didn’t pass the bar exam on the first try & just quit. Then she got MORE student loan funding & make a complete change into the medical field.
She made the comment some time last year that she ‘had been paying on her student loans since 1991 & they never seem to go down’.
I can assure you that she owns 3 vehicles—all of which are less than 19 years old & were bought new. She also has a camper—which is only 3 years old & bought new. She has other objects of her hobby & all of them are less than 19 years old. In short- she has not taken seriously the idea that she must pay back her student loans.
She makes over $50 an hour, lives rent & utility free & is ‘always broke’. She has declared bankruptcy to clean off her credit card debt.
In Short—this person never should have had any student loan money in the first place.
IF she had had to pay for her own cost of her 4/5 year degree out of her own pocket, perhaps she would have had a better handle on how to manage her money & life.
She is an aquaintance & I cannot speak to her for any length of time any more. I have learned to avoid contact with her at all costs. I have all I can do to keep from attacking her for her level of irresponsibility.
Cordon Bleu grads make a tad more than minimum wage. Not to mention that the service industry is one of the few still showing growth.