Federal student loans (branched from "Where else should I apply?"

Qwerk · Jan 17, 2013

Just wanted to branch the discussion we were having in the "Where else should I apply? Psy.D." thread on federal student loans and FSPS/for-profit schools.

I probably won't be able to post much in the next few days, since I'll be in Mexico until Tuesday. However, I think a good beginning point for this topic would be the extent to which federal student loans are to blame for rising tuition costs and the proliferation of for-profit (and bad-value nonprofit) psych programs, and what would change if only private loans were available.

I'll start with two questions:

1. If federal student loans disappeared, how would we protect students from making poor financial decisions based on misleading advertising by corporations offering student loans? I've heard plenty of people on SDN say that they almost went to for-profit/bad-value grad schools, or did and regretted it. If smart grad students with experience navigating college choices can make bad financial decisions, what hope is there for 18-year-olds first applying to college?

2. How would we ensure that students with promise (but no credit/bad credit) can still afford to go to school? It's already difficult enough for many of these students to receive private loans.

JeyRo · Jan 17, 2013

Qwerk said:
Just wanted to branch the discussion we were having in the "Where else should I apply? Psy.D." thread on federal student loans and FSPS/for-profit schools.

I probably won't be able to post much in the next few days, since I'll be in Mexico until Tuesday. However, I think a good beginning point for this topic would be the extent to which federal student loans are to blame for rising tuition costs and the proliferation of for-profit (and bad-value nonprofit) psych programs, and what would change if only private loans were available.

I'll start with two questions:

1. If federal student loans disappeared, how would we protect students from making poor financial decisions based on misleading advertising by corporations offering student loans? I've heard plenty of people on SDN say that they almost went to for-profit/bad-value grad schools, or did and regretted it. If smart grad students with experience navigating college choices can make bad financial decisions, what hope is there for 18-year-olds first applying to college?

2. How would we ensure that students with promise (but no credit/bad credit) can still afford to go to school? It's already difficult enough for many of these students to receive private loans.

I think that the discussion I'd like to see is broadly about how the existence of federal student loan programs has led directly to the proliferation of highly shady, low-quality programs like Alliant / Argosy / U. of Phoenix, etc., and has led to the hyperinflation of higher education tuition across the board (not just at low-quality programs, and this includes virtually all graduate and undergraduate programs in the USA).

I completely agree that a sizeable chunk of professional psychology programs, the majority of FSPS, and the overwhelming majority (near-totality) of for-profit psychology programs are of exceedingly poor quality and generally are what the average person would colloquially call a "ripoff." However, it mistakes the symptoms for the disease when one focuses on for-profit schooling as the principal issue, or FSPS or professional psychology degrees or APA as the principal issue. They are the symptoms and not the disease.

Realistically, I see that the talk of reforming APA, tweaking how federal student loans are disbursed (e.g., setting performance standards for schools), or somehow reigning in FSPS as twiddling of thumbs while Rome burns.

Federal student loans (branched from "Where else should I apply?"

Qwerk

LCSW, private practice

JeyRo

Full Member

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