3 ms·
The problem is not for profit colleges, the problem is guaranteed government loans to anyone who goes to college. This is exactly what happened with the housing
by axiom 15y ago
The problem is not for profit colleges, the problem is guaranteed government loans to anyone who goes to college. This is exactly what happened with the housing bubble. You have a government entity (in the housing case it was Fannie Mae and Freddie Mac) that's giving out money without any checks and balances.
So as a result you get a few amoral businesses who buy up colleges that have regional accreditation and balloon their enrollment with online programs in order to collect the free money being handed out by the government. This shit only works as long as you have a blank cheque issued by the government to anyone who goes to a regionally accredited college.
The solution is not to clamp down on the only bit of free enterprise that still exists in higher education. The solution is to let the market price the risk/value of college degrees.
- yuhong 15y ago> You have a government entity (in the housing case it was Fannie Mae and Freddie Mac) that's giving out money without any checks and balances. Except there is checks and balances, otherwise they'd be unable to sue.
- joe_the_user 15y agoThe problem is not for profit colleges, the problem is guaranteed government loans to anyone who goes to college. 1) It is hard to claim that for-profit colleges aren't part of the problem. They clearly have more of an incentive for this kind of a fraud (though other schools might have some incentive). 2) For profit colleges have expanded primarily based on student loans. Without student loans, indeed for-profit colleges wouldn't be a problem but mostly because they wouldn't exist.
- yummyfajitas 15y agoThey clearly have more of an incentive for this kind of a fraud (though other school might have some incentive). Could you explain this statement? Also, many non-profit colleges (including plenty of schools as bad as any for-profit) also would not exist without student loans and other govt subsidies.
- cheez 15y agoDid you watch College Inc. too? Good documentary.
- polymatter 15y ago> The solution is to let the market price the risk/value of college degrees How would you get close to that market price, while still supporting those who will not be able to afford college? Surely tuition fees will increase in line with the maximum of any form of government supported loan.