The Partisan Battle Over For-Profit Education

The Republican-led House will benefit the for-profit education industry but Democrats have leverage.

February 7, 2011 RSS Feed Print

Comment (17)
Tweet

In an effort to ensure that students don't find themselves in similar situations after enrolling in for-profit programs, the Department of Education will soon offer clear definitions of gainful employment regulations, which are meant to ensure that schools adequately prepare their students for the working world by examining their students' debt load on graduation, student income, and student loan repayment rates. If a school doesn't meet benchmarks in each of those areas it risks losing federal student loan funding, which for-profit schools rely on for survival.

A Department spokesperson maintains that the final gainful employment guidelines will be released early this year, but refuses to offer a specific date. While the Republicans in the House can block further legislation, it is unlikely that they will be able to dilute the regulations in the wake of an extended public commenting period on the proposed rules, analysts say. "There will be a significant number of changes to the final rule, but that does not mean that we should expect a broad softening of the rule," says Price of Height Analytics.

Searching for an online university? See a comprehensive list of online programs.

Tags:: students,; colleges,; debt,; online education,; student loans

Reader Comments Read all comments (17)

Add Your Thoughts Comment Name State Email

Please enter the two words below into the text field underneath the image.

Your comment will be posted immediately, unless it is spam or contains profanity. For more information, please see our Comments FAQ.

Here you go

Kelly of NY 7:26AM April 23, 2012

All schools should operate without federal funding. If for profit online education is really just a clever diploma mill in disguise, than traditional students who go to "real schools" should also have no problem repaying money - let all schools fund it that way.
The college i work at does not accept any federal funding (not even Pell grants) and they are still standing.
Back to for profit schools like UoP and the likes, here's one "diploma mill" graduate who did pretty good for getting a ramshackle education. ---> Howard Schmidt.
It is my personal belief that all education should have to meet the same standards, be it brick and mortar or distance education. But i also believe that the student can make the education, and not always the other way around. It seems like ‘online only’ education is the new ‘state school’ in regards to it being a second class education. I am not saying University of Phoenix graduates are going to compete head to head with Ivy League schools - but i am saying an education inherent is not entirely able to assess alumni’s credentials on the school’s merits alone, the student has to do that part.

David of PA 1:40AM May 01, 2011

Important facts to keep in mind.
* for-profits are often more regulated than your free to do as you please no/unequal standards to meet community/public college
* for-profits often roll the majority of student costs into a stated tuition and fee schedule where as community colleges fee you to death
* for-profits often aren't eligible for the state grants you pay for public colleges
* for-profits don't sit on free and/or tax-free city land
* while there may be some bad apples, you cannot lump all for-profits into one "evil" group
* for-profits pay lots of taxes and fees that help your local economy and employ a number of upstanding citzens
* a lot of students owe huge amounts because they borrow in excess of their college costs because the government requires that a student be able to borrow up to the "cost of attendance" which is more than just fees associated with the cost of school (includes elements for standard costs of living, transportation, food, etc.). For example, some students receive $2000 per month for "living expenses" and opt not to work, whose fault is that?
* some students don't make the minimum payment on their private loans and don't contact the lender and are therefore placed in a highter interest rate because those terms are outlined in the loan agreement, it's not that a student coulnd't have done something about it, it's because they failed to.

Carlie of IL 12:54PM April 11, 2011