Student Loan Default Rates Rise Sharply in Past Year : NY TIMES

The default rate for dental students is less than 1%. I wouldn't worry.

I don't understand why low income people go to these expensive for-profit schools when they can take community college courses for much cheaper. Boggles my mind. At least a community college is respectable. I know someone who intentionally leaves University of Phoenix off his resume because he got laughed at in an interview(of course he didn't get the job). Community college is made for people on a tight budget.

There was this article in the Economist last year about for profit companies and how they used nonethical tactics to recruit low income students.

The recruiters for these companies get commission, and they hang out at job fairs offering guaranteed funding from the government to potential students. They use the easily attainable student loans to fund their companies, with their student's education a distant secondary concern.

For example, Kaplan University had this ad running with an African-American woman with 2 kids going to school and earning a degree. Apparently, this demographic is most likely to withdraw from school.

Even with the students withdraw from school, the administrators don't process it so they can keep getting their share of the student loan.

So this applies mostly for-profit colleges with their degree being worth as much as the paper it's printed on, not for high-income potential earning degrees such as dentistry.

AlbinoPolarBear said:

There was this article in the Economist last year about for profit companies and how they used nonethical tactics to recruit low income students.

The recruiters for these companies get commission, and they hang out at job fairs offering guaranteed funding from the government to potential students. They use the easily attainable student loans to fund their companies, with their student's education a distant secondary concern.

For example, Kaplan University had this ad running with an African-American woman with 2 kids going to school and earning a degree. Apparently, this demographic is most likely to withdraw from school.

Even with the students withdraw from school, the administrators don't process it so they can keep getting their share of the student loan.

So this applies mostly for-profit colleges with their degree being worth as much as the paper it's printed on, not for high-income potential earning degrees such as dentistry.

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Yeah I kinda feel sorry for people who feel for-profit is their only option when the community college route is much better. For-profit is a scam that drains funding for real education.

nondescriptive said:

Yeah I kinda feel sorry for people who feel for-profit is their only option when the community college route is much better. For-profit is a scam that drains funding for real education.

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I agree. I know this is far off for me, but I was thinking to myself the other day that I wouldn't hire anybody for my office if they got a "degree" from a for-profit school. Those degrees aren't worth a damn thing.

You mean I can't still go to school and take care of my kids going to DeVry? That's what the lady told me on tv

jackalo34 said:

You mean I can't still go to school and take care of my kids going to DeVry? That's what the lady told me on tv

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Yeah, that lady is dancing all the way to the bank to cash your check I bet you that lady on TV has an honorary degree from the school for doing the commercial.

nondescriptive said:

Yeah, that lady is dancing all the way to the bank to cash your check I bet you that lady on TV has an honorary degree from the school for doing the commercial.

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yes, that many were needed

AlbinoPolarBear said:

There was this article in the Economist last year about for profit companies and how they used nonethical tactics to recruit low income students.

The recruiters for these companies get commission, and they hang out at job fairs offering guaranteed funding from the government to potential students. They use the easily attainable student loans to fund their companies, with their student's education a distant secondary concern.

For example, Kaplan University had this ad running with an African-American woman with 2 kids going to school and earning a degree. Apparently, this demographic is most likely to withdraw from school.

Even with the students withdraw from school, the administrators don't process it so they can keep getting their share of the student loan.

So this applies mostly for-profit colleges with their degree being worth as much as the paper it's printed on, not for high-income potential earning degrees such as dentistry.

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I did a case study on for-profit schools as a senior project in by business capstone class. All I will say is that there is some messed up stuff going on there. Seriously messed up... I have to hold my tongue so that I don't get all political and whatnot haha. I even remember watching a pretty good documentary (by 60 minutes??) on the subject after I submitted my review. If I can find it online, I will link it.

To keep on topic, for profit schools are pulling the default rate way up. A lot of them are sitting on about 40% default rate. Yes, you read that correctly.

Bereno said:

I did a case study on for-profit schools as a senior project in by business capstone class. All I will say is that there is some messed up stuff going on there. Seriously messed up... I have to hold my tongue so that I don't get all political and whatnot haha. I even remember watching a pretty good documentary (by 60 minutes??) on the subject after I submitted my review. If I can find it online, I will link it.

To keep on topic, for profit schools are pulling the default rate way up. A lot of them are sitting on about 40% default rate. Yes, you read that correctly.

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Its no real surprise the default is 40% if they owe 30K and go out working for $10 an hour; its hard to get a good paying job when your degree is worth as much as the paper it was written on. I'd love to see that link of yours.

thats why people should think twice about getting masters or grad degrees in programs that have no real job growth. im not saying everyone should go for d-school, but dont go for a field thats dead or dying out.

I had read an article where the fed was pulling in these schools by eliminating federal funding to schools that didn't meet particular metrics; job placement, default rate etc. This would at least stop the bleeding that these schools are causing. The students would have to seek out privite loans in order to attend said for profit schools.

The reason people go to schools is like this is because of the heavy marketing they do. They sell the idea that you can get a degree very easily while working and taking care of your family. Many people are intimidated by or are ignorant of CC or university so they opt for the more friendly school.

I just dont get it: Do a 2-3 year program in pharmacy tech (no joke lol) or go to a CC and get an RN degree in roughly the same amount of time... hmm which is the better option.

As for grad programs, many of these will actually pay students to attend and do research. So they can earn their 35k/yr stipend while earning their degree debt free - not bad if your passion is research or the sciences.

yappy said:

I had read an article where the fed was pulling in these schools by eliminating federal funding to schools that didn't meet particular metrics; job placement, default rate etc. This would at least stop the bleeding that these schools are causing. The students would have to seek out privite loans in order to attend said for profit schools.

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You would be surprised at how a school can get around these "metrics"; that is half of the problem. If a student is good on their loans for 2 years, the school is no longer tied to that student (thats how it used to be at least, cant remember what it is now). This means that if a student defaults in year 3, the school can still report that the student did not default on their loan, thus abnormally lowering their stated default rate. Job placement is also screwed because salary does not have to be reported. This means that a lot of these schools do find students jobs, they are just very low paying jobs. Once again, this is abnormally increasing their job placement statistic. There are a lot of other things going on as well, these are just a few examples. Like I said earlier, lots of shady stuff from what I remember doing my research on the subject.

Also, I finally found the link here. Its a Frontline video made back in May of 2010. Enjoy

yappy said:

I just dont get it: Do a 2-3 year program in pharmacy tech (no joke lol) or go to a CC and get an RN degree in roughly the same amount of time... hmm which is the better option.

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2-3 years for pharmacy tech? I really do feel sorry for them; I bought the pharmacy tech book from barnes and nobles and passed my exam a week later.

heh, yeah. It's sad. The worst part is the person I met that did this could not even find a job as a tech.

nondescriptive said:

2-3 years for pharmacy tech? I really do feel sorry for them; I bought the pharmacy tech book from barnes and nobles and passed my exam a week later.

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yappy said:

heh, yeah. It's sad. The worst part is the person I met that did this could not even find a job as a tech.

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No wonder it took him 2-3 years; he doesnt know what he's doing. CVS is always hiring(no matter what you think of them); I bet he wanted to start off at $15 b/c he spent so much time in school. Sometimes you just have to start at the bottom and work your way up

nondescriptive said:

No wonder it took him 2-3 years; he doesnt know what he's doing. CVS is always hiring(no matter what you think of them); I bet he wanted to start off at $15 b/c he spent so much time in school. Sometimes you just have to start at the bottom and work your way up

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I am living my American dream . I came to United States 10 years ago and started working at the age of 16. I learned English, people and culture.

My Jobs- fast food, construction, landscaping, cab driver, limo driver, retail, teller, charity, jewelry salesman, watch repair, cell phone salesman, sunglass salesman (never wore one and still don't), tutor, insurance salesman, lab assistant, research assistant (now). I worked in many different settings and worked with all kinds of people. I am hoping to be a part of better America and its better future.

flyingforever said:

I am living my American dream . I came to United States 10 years ago and started working at the age of 16. I learned English, people and culture.

My Jobs- fast food, construction, landscaping, cab driver, limo driver, retail, teller, charity, jewelry salesman, cell phone salesman, sunglass salesman (never wore one and still don't), tutor, insurance salesman, lab assistant, research assistant (now). I worked in many different settings and worked with all kinds of people. I am hoping to be a part of better America and its better future.

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You're the kind of people I respect and I'm positive you will make a great dentist one day You truly are flying forever