Wednesday, September 10, 2014

The battle over DOE's gainful-employment rule heats up.

English: neo classical columns and capitals of...
English: neo classical columns and capitals of the Pantheon of Paris Français : exemples de fûts de colonnes et de chapiteaux néo-classiques corinthiens, Panthéon de Paris (Photo credit: Wikipedia)
As the October release date for the rule approaches, the for-profits kick and scream.  Meanwhile consumer and advocacy groups demand a hard-and-fast standard.

The for-profits stand to lose their money machine. The demise of Corinthian may have sound the death knell of more of these operations.  Here's the way it has worked for many of them:

  • Lure potential students, including naive vets, into applying with promises of great new careers.
  • Charge them big bucks and help them pay via federal loans.
  • Pocket the income as high salaries, bonuses and dividends.
  • Let the borrowers fall by the wayside, where they default on the loans.
  • And let us taxpayers pick up the losses.

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