Well at least for-profit college execs are doing well...

[halik]

linky dink

With all this outrage about exec comp at publicly traded businesses, I'm surprised people aren't freaking out about this. Take one shitty product add government subsidy and zero downside due to gov't regulation and you end up with a business that makes it rain like no other.

 

[Sinsear]

I propose a government takeover posthaste.


If I'm not mistaking most of those are the "scam" type colleges that credits don't transfer and have what I would consider "sliding scale" tuition based upon how much they can get out of you for that "certificate in criminal justice".

 

[IndyColtsFan]

linky dink

With all this outrage about exec comp at publicly traded businesses, I'm surprised people aren't freaking out about this. Take one shitty product add government subsidy and zero downside due to gov't regulation and you end up with a business that makes it rain like no other.

I will never understand why people "attend" the University of Phoenix. Even throwing out the arguments about the suspect quality of the education, it is freaking expensive! There are far better online alternatives from state universities which are much cheaper.

 

[IBMer]

The correct choice is to disallow any public financing of for-profit colleges. If people want to go to school and they need public financing they can go to a non-profit state or community college.

 

[Sinsear]

I will never understand why "attend" the University of Phoenix. Even throwing out the arguments about the suspect quality of the education, it is freaking expensive! There are far better online alternatives from state universities which are much cheaper.

Yeah but TV is not flooded with infomercials promising easy success for state schools. Never underestimate an American's lust for getting something without having to put in any effort.

 

[IBMer]

Yeah but TV is not flooded with infomercials promising easy success for state schools.

Those aren't "state schools" you are seeing infomercials for.

 

[halik]

The correct choice is to disallow any public financing of for-profit colleges. If people want to go to school and they need public financing they can go to a non-profit state or community college.

You also need to make the debt dischargeable in bankruptcy just like any other unsecured credit. Otherwise creditors will keep on funding stupid degreees/ stupid schools, knowing they won't lose principal.

 

[IndyColtsFan]

Yeah but TV is not flooded with infomercials promising easy success for state schools. Never underestimate an American's lust for getting something without having to put in any effort.

A guy I knew got his MIS from UoP. This guy nearly flunked out of undergrad (barely had a 2.0 IIRC) and was not very bright.

He graduated with a 4.0 from UoP. No, it wasn't because he suddenly became smart. He was still a big dumbass after he graduated.

 

[IndyColtsFan]

Those aren't "state schools" you are seeing infomercials for.

That was his point -- UoP and others are the ones doing the advertising and roping people in, not state schools with distance-learning/online programs.

 

[fskimospy]

We certainly need to massively increase the standards a school must meet before its students qualify for aid. I highly recommend people watch the frontline episode on for profit colleges. http://www.pbs.org/wgbh/pages/frontline/collegeinc/

It's pretty awful.

 

[matt0611]

Colleges have been increasing costs much faster than inflation. People still attend these colleges because government subsidized loans (and now total takeover).

These loans give 18 year olds 10s of thousands of dollars at low interest no matter their career prospects or potential to pay it back.

Then theres the culture of everybody needs to go to a nice fancy college.

Is it a wonder that college costs have sky-rocketed?

 

[Wreckem]

The correct choice is to disallow any public financing of for-profit colleges. If people want to go to school and they need public financing they can go to a non-profit state or community college.

Thats exactly what Congress plans on doing.

 

[Wreckem]

That was his point -- UoP and others are the ones doing the advertising and roping people in, not state schools with distance-learning/online programs.

UoP might be a bad choice, and anyone graduating from there is highly suspect, but it is at least accredited by a regional accreditation agency.

Thats not the case for DeVry, ITT, Kaplan, etc etc etc.

 

[fskimospy]

Colleges have been increasing costs much faster than inflation. People still attend these colleges because government subsidized loans (and now total takeover).

These loans give 18 year olds 10s of thousands of dollars at low interest no matter their career prospects or potential to pay it back.

Then theres the culture of everybody needs to go to a nice fancy college.

Is it a wonder that college costs have sky-rocketed?

The student loan default rate for non-profit schools was around 4% before the recession hit, now it is modestly higher. Clearly, the vast, vast majority of students from non-profit universities have no trouble paying it back. So what exactly is the problem?

For profit schools on the other hand have a default rate that is easily twice that. This is why we should revise our lending standards to them.

 

[Phokus]

UoP might be a bad choice, and anyone graduating from there is highly suspect, but it is at least accredited by a regional accreditation agency.

Thats not the case for DeVry, ITT, Kaplan, etc etc etc.

Another fine example of how consumers are not 'rational actors' and the asymmetry of information makes them make poor decisions.

 

[IndyColtsFan]

UoP might be a bad choice, and anyone graduating from there is highly suspect, but it is at least accredited by a regional accreditation agency.

Thats not the case for DeVry, ITT, Kaplan, etc etc etc.

I thought (and correct me if I am wrong, but I don't have time to verify at the moment) that UoP's "accreditation" was through a regional accreditation agency that it owned.

 

[IBMer]

That was his point -- UoP and others are the ones doing the advertising and roping people in, not state schools with distance-learning/online programs.

I need to stop multi-tasking while reading posts.

 

[fskimospy]

Wow, upon further investigation, UoP's graduation rate is 16% overall, and 4% for their online division.

I mean I knew it was bad... but.... jesus.

 

[matt0611]

The student loan default rate for non-profit schools was around 4% before the recession hit, now it is modestly higher. Clearly, the vast, vast majority of students from non-profit universities have no trouble paying it back. So what exactly is the problem?

For profit schools on the other hand have a default rate that is easily twice that. This is why we should revise our lending standards to them.

Well yes, the default rate is lower because public schools cost less right? I mean, in reality they are expensive too but they are just subsidized directly by the taxpayers. Public universities costs are also increasing I would assume.

The problem is that costs are really high. Even if many do end up paying it back eventually.

 

[IndyColtsFan]

Wow, upon further investigation, UoP's graduation rate is 16% overall, and 4% for their online division.

I mean I knew it was bad... but.... jesus.

Good Lord! How can you NOT graduate from there, especially their online program?

We definitely need to cut federal subsidized loans for people attending these "schools."

 

[bamacre]

The tuition at the school I graduated from in Dec '98 has almost quadrupled in less than 12 years. When everyone can afford it, no one can. I feel bad for these kids taking on tens of thousands in debt before they even graduate, then there's that other debt waiting for them.

 

[fskimospy]

Well yes, the default rate is lower because public schools cost less right? I mean, in reality they are expensive too but they are just subsidized directly by the taxpayers. Public universities costs are also increasing I would assume.

The problem is that costs are really high. Even if many do end up paying it back eventually.

Actually the average non-profit public school default rate is higher than the average non-profit private school default rate. The difference between the two isn't huge, but since public schools are almost always cheaper it implies that there's something else going on outside the size of the loans.

Yes, college costs are high and that's a problem, but at least non profit colleges give students credentials and degrees that employers want and recognize. (except for you fine arts majors, haha) Students get something of value for their money. For-profit colleges give you nothing for all that money, so they need to get the boot. Post haste.

 

[fskimospy]

Good Lord! How can you NOT graduate from there, especially their online program?

We definitely need to cut federal subsidized loans for people attending these "schools."

It's amazing how they can find a way to combine 'so easy that you don't have to learn anything' with 'massive dropout rate'. Seriously, I'm impressed.

Then again, I guess that's what happens when you have basically zero admission standards. Then again, community colleges in effect have no admission standards and their success rates are still way higher. (and costs, even counting taxpayer subsidies, are way lower)

These colleges just suck in every imaginable way.

 

[JS80]

I instruct my recruiter to filter out anyone with a degree from UoP

 

[alkemyst]

I will never understand why people "attend" the University of Phoenix. Even throwing out the arguments about the suspect quality of the education, it is freaking expensive! There are far better online alternatives from state universities which are much cheaper.

UoP has gained acceptance....people are still leary of it though.

To the OP...it's all about "I will give you a lot of money today as an organization" you give me a little bit back as a voter.