For-Profit Colleges: Stealing America’s Future?

For-Profit Colleges: Stealing America’s Future?

October 27, 2019 20 By Stanley Isaacs


back on the program is david halperin he
is an attorney advocate writer at Republic report dot
or a former speechwriter for bill clinton I David great to have you on of course but student loans I have been a big
issue when it comes to students in education but another issue that is
equally important or at least for many people being aware of it certainly and its
implications is that a for-profit colleges in your new book which is
available on Amazon stealing america’s future talks about for-profit colleges this
came up a little bit in the 2012 election around Mitt Romney of course his buddy from Full Sail University a
for-profit college in that a possible ties there but it’s not
something that everybody knows a lot about so tell us first kinda broadly speaking why should people
care about for-profit colleges well david thank you for having me on
again this is a very important time for people to get engaged on issue its seems maybe like a an issue
that no one’s heard about her small matter but for-profit colleges are eight forty
five billion dollar-a-year industry and almost thirty five billion dollars
that comes from you and me taxpayers are
paying for student grants and student loans at that students use to attend the
schools unfortunately many students are learned by promises
that they’re going to have a terrific career but the school’s charged too much money
to eat and and the outcomes are often bad in students who left deep in debt that is contributing to a student debt
crisis that’s reach 1.2 trillion dollars that borrowing and and beginning to look somewhat like
the subprime mortgage crisis for-profit colleges have
thirteen-percent students but they have 47 percent up the defaults
on these loans and that could lead to disaster it more
and more these nuts too are also students who were in default on
loans are way behind on payments can get married can buy a car can buy a
house it’s really it’s really a drag on our economy as
well as a terrible personal toll on the students whose lives ruined and I
want people may not understand a lot of people may not know necessarily that most colleges and universities the
accredited ones the ones everybody’s heard a are not-for-profit organizations in
other words when you see that really high price tag the sticker price on education
you might assume that this has always been a for-profit thing but at least ostensibly there is a difference most
have those big schools that your friends and family have gone
to are not-for-profit institution so question one would be how do the operations differ when we cut
when we think about a for-profit college what is practically
different about how a for-profit college operates verses not-for-profit colleges
and universities well there’s a lotta that in Don Pepe in
not-for-profit n in state university so I don’t come
out and say their fantastic place is certainly no they
certainly need reform and one of the things they’re not doing
well is serving working adults single mothers people who drive that
finished with military service people who are looking for potentially
sack classes at night online classes the schools are basically
their budgets have been cut in part because so much money is spent on
for-profit colleges on so they’re in the desert actually
turning students away and for-profit colleges are all over them and this is where things get bad because
for-profit colleges recruit to boiler room operations high pressure
sales tactics manipulated sales taxes and false statements to Steam’s their
relentlessly driven by what they call by signing a student systems are
referred to as peace is a business or asses in classes very cynical
environment its all about signing up as many
students as you can get them in the door and then more than happy to the students
who enroll drop out within four months on so n Department of Education recently
determined that on if the programs they looked at
in for-profit colleges seventy-two percent their graduates on
average were earning less in high school dropouts that’s exactly
right there’s also another study David which I’m sure you’re familiar with is a
Stanford study by Hawks be in Avery which shows that their appears to be no
evidence that students career wise and income wise will truly gained from obtaining any of
these certificates or degrees from I’ll a lot of the
for-profit institutions that there will not actually be if you consider the cost and the
opportunity cost to being there and not working as bad as many do that you won’t be further ahead interns
have your earning your overall earnings by having completed one of these
programs that’s reading some programs work and
even within the bad schools they’re good teachers and good students trying to do
something to make their lives better but overall
how is this different there’s a lotta cynicism it’s driven by
profit and worse than that they come to washington now in argue how dare US dollars are free market
system well for-profit colleges get many it and get
ninety percent of their revenue for taxpayers so it’s not a free market program it’s a
government programs and the by in washington now is about should
there be rules so that the programs are are required to
help students should there be really no rules a wild
west where where the whole goal is to abuse dunes and the more you be
students the more money make there seem to be some key
differentiating factors not all for-profit institutions in the same
in the same way that not all not-for-profit educational institutions
are the same one issue is that a accreditation and
whether the credits you obtain it one of these institution would be valid or
recognized by either employers or other schools you talked about the high dropout rate talk a little bit
about how some of these programs are marketed in a way that makes them
seem as if they are no different than the that the degree or certificate you would
obtain elsewhere but the credits would not transferred to
other institutions because it is not an accredited program there aren’t many schools our credit the
problem is that the creditors rollover they have
for-profit college representatives on their core there outmatched financially the for-profit colleges trend is sue
them up with something is happening now if they push too hard push back in the
accreditation so they are credited depicts the accreditation doesn’t mean
that much national accreditation is a weaker often a weaker %uh standard it does say to students
that were not regionally accredited with nationally credit that’s better which is just one of the many represent
misrepresentations that they make they also often say that our program
will allow you to have this particular career as a dental assistant as a psychologist
licensed psychologist when in fact they haven’t applied for
the additional accreditation that would make that possible they live
students that this students come in and they don’t get the job want the
schools met we talked about this when I was on your show on told a woman in fact she came in she
said she wanna be a nurse out this cool attack was partly helped
by Mitt Romney on and the school said well we know the
nursing program but we can have we have a program for a medical assistant that will put you on a fast track to
being a nurse she took the proper because she’s been something like twenty
five thousand dollars should get damage in loans and at the end it is an OD it with a
medical assistant we met medical office assistant you’re not qualified to be a medical
offices which of course don’t eat any degree at all four I’m if you want the medical system w/
another year another twelve thousand dollars she sued and a
jury in in Missouri waited eleven million dollars in
punitive damages which he only asked for two million dollars so people are starting to be outraged by
these misconduct the other thing I wanna touch on briefly
as there’s this idea sometimes that whatever it is we’re talking about
whether it’s health insurance whether it’s education in this case whatever it
is that the for-profit free market will do
a better and more efficient job then we’ll any any state or government
organization or nonprofit what do we know when it comes to
for-profit institutions in terms of how much they were actually spending on instruction for students relative to
how much students are actually paying not not looking at sticker prices but what is actually being paid by
students okay geek this is a that’s it does a
very good question stated in net price at the Art Institutes chain
owned by the second for-profit college EMC is almost twice as much as the net price
Harbor what that means is that harbored for its
students on financial aid or Stanford or lots about the school’s begin a lot financial aid from school
basically a discount in the prize pool that sticker price the Art Institute did not
be that for the most part so this demand
that actually owing potentially almost twice as much as
going to does schools so that the terrible being on
the other end instruction Bridgepoint Education’s was
good I and harkin the spending about a thousand
dollars per student on instructions purses I think about fifteen thousand
dollars per student at university and I’ll which accorded the same day on and and
University it’s with much better like one the about thirteen hundred
dollars pristine to the school to spending far less
United struction and AR they’re charging are more then
take Muni ka ghar ki ten times more than Beauty College so as
a result the muck where’s the money going it’s
going to relentless marketing advertising to bring in more students it’s going to be salary to the top
executives these companies which can be three work ten million dollars on it’s going to you relentless lobbying so
that they can keep they can maintain its privileged
position and keep the money flowing in with any regard for the for the impact
on students I would I was being yesterday are on TV I we’re delighted for 25 years when the
worst things I’ve everything in terms the way
it’s really not not just students and taxpayers played corrupting it corrupting our
party the only reason politicians what stand up to this camp it be cut
their biggest downer in their community their big national donors to the party
democrat or republican are these private equity parent any
owners for-profit colleges as usual the corrupting influence of
money in politics david halperin the book is stealing america’s future how
for-profit colleges can taxpayers Andrew in students lives it is available on Amazon David pleasure as always to
have you on thank you very much david appreciated