Hey companies, how is it going?
Well, not great if the news has anything to say about it. With ITT Tech (originally International Telephone and Telegraph) closing its doors, it seems that the Department of Education and the government as a whole has been having a decreasing tolerance towards for-profits. But, is this necessarily a good thing?
As always, it never is that simple. Good or bad are meaningless: is it fair?
It’s been a trend in the last ten years; long standing for-profit colleges that had a relatively large student population with comfortable profit margins to boot. With a decrease in government funding in for-profits and decreasing enrollments, resources for the colleges were dwindling rapidly. If anything, the former reason was almost more detrimental than the later. Enrollment is quintessential, absolutely, however when for-profits students already have restrictions on how much federal loans can be put towards classes, the colleges tend to be cut at the knees from the start.
The government has every right to be restrictive. According to forprofitu.org, 47% of students that have defaulted on their loans attended for-profit colleges; almost half. That’s not simply an issue of camaraderie of private versus public colleges, but that is viewed as a significant burden on the economy. Even if students don’t default, the department of education shows the significant of difference in the median debt. According to the DOE, Students at for-profit colleges carry a median debt of $32,700, while at public schools students have a median debt of $20,000 and $24,600 at private non-profit schools.Read The Full Article