From the woman walking on a bridge touting how great her for-profit college degree has been to her to a man urging you to get off of your couch, are for-profit educational institutions really that great?
We may have found the answer. A report via the Huffington Post exposes how some for-profit higher educational institutions operate.
According to the piece, Everest College will pay different companies a certain amount to hire one of its recent graduates. The amount paid from the college to the company is only good for 30 days, and once that period expires, the company is free to let the employee go.
But the dire warning of this story regarding Everest is that the school used the faux job placement strategy as a way to gain access to federal student aid funds. Without this money, companies like Corinthian, the parent company of Everest College, would have a tough time operating as they have received almost $10 billion in federal funds.
So, are these types of schools harmful to African-Americans?
According to the Atlantic, 13 percent of students who began to pay back their student loans in 2009 have already defaulted. Taking that further, 96 percent of all enrolled in for-profit educational institutions take out student loans and are saddled with over $12,000 more in debt compared to students who in enroll at a public colleges or universities.
Lastly, African-American enrollment in for-profit institutions shot-up a staggering 264 percent between 2004 and 2010. Couple that number with the percentage of students who leave school with student loan debt and we have our answer.
While education is a pathway to a greater life and success, nothing that comes with such a high price tag and so little pay-off is worth the financial hardship down the road.
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- How A For-Profit College Created Fake Jobs To Get Taxpayer Money (huffingtonpost.com)
- Corruption Threatens Obama Action on For-Profit Colleges (huffingtonpost.com)
- California accuses owner of Everest College and Heald College of ‘predatory’ ads (oregonlive.com)
- 5 Ways Student Loans Can Hurt Middle-Class Kids (mint.com)