Dangerous to get personal loans and go to for-profit school

Private, for-profit schools aren’t all created equal, and scholars should be persistent about any they might be considering. There have been numerous clashes between for-profit schools and the authorities, and profit driven school attendees have the highest loan default rates after graduating. Scholars should do their research before attending, though several for-profit schools are perfectly fine.

Donald Trump seeing Indictment in the future as a possibility

CNN reports the New York Lawyer General is investigating five companies that were for-profit universities. One of the schools involved is the former Trump University, the small for-profit school launched by Donald Trump several years back. After the New York Department of Education said that this was not a real school, it was renamed the Trump Entrepreneur Initiative. There are four other schools involved, reports the New York Times. They contain Bridgepoint Education, Lincoln Educational Services, the Career Education Corporation and Corinthian Colleges. Charges have not yet been filed. They are all being investigated still.

Dispute being worked out

State governments and the federal government are beginning to come down on for-profit universities, and some previous students aren’t thrilled. Right now, Donald Trump is being sued by some students in California. They say they were misled by what is now Trump Entrepreneur Initiative. The investigation of Corinthian’s colleges consist of those found in many states. These states contain Florida, Georgia, Massachusetts and California. The Massachusetts Attorney General, according to the Boston Globe, is also investigating Apollo Group, the company that runs the University of Phoenix, also as the Kaplan Career Institute, which is operated by the Washington Post Company. The corporate parts of smaller private colleges are also typically not very stable. For instance, Alpine College in Spokane, Wash., recently closed its doors permanently in the middle of a term, leaving scholars holding the bag for thousands in unsecured loans and no degree to show for it.

Affording it is hard to do

Students have difficulty deciding which school to go to. Typically, cost is an essential thing to consider. Most for-profit universities are costly. They can cost more than they are worth. Reuters states that 15.2 percent of students who went to a for-profit college defaulted on student loans within a year in 2009, which is twice the 7.3 percent of students who defaulted after going to a public college. A default rate of 4.3 percent was shown for private, non-for-profit schools. Also, for-profit college scholars make up half of loan defaults. That’s a pretty high rate. It has been too hard for scholars to meet loan responsibilities after going to for-profit universities. Individuals have accused for-profit universities of not preparing scholars well enough. A new rule is being considered by the Department of Education. This wouldn’t allow schools with scholars that have a 35 percent or higher default rate to get federal loans for students.

Citations

CNN

money.cnn.com/2011/05/20/news/companies/trump_university/index.htm

New York Times

nytimes.com/2011/05/20/nyregion/trumps-for-profit-school-said-to-be-under-investigation.html?pagewanted=1&_r=1&ref=education

Reuters

reuters.com/article/2011/05/20/education-forprofit-idUSN2028820820110520

Reuters

reuters.com/article/2011/05/20/us-education-idUSTRE74J55O20110520

MSNBC

msnbc.msn.com/id/43130397″>MSNBC

Boston Globe

http://articles.boston.com/2011-05-17/business/29552871_1_college-access-success-college-students-schools”