How Trump And DeVos Encourage Education Ripoffs

[turbinetree]

David Cay Johnston
December 13, 2018 4:26 am

Reprinted with permission from DCReport.

The Trump Administration hid a study documenting financial abuse of students by some banks working hands-in-glove with colleges, the latest example of how instead of “draining the swamp” Donald Trump is turning official Washington into a paradise for swamp monsters.

The suppressed fee gouging report was made by the Consumer Financial Protection Bureau or CFPB.

Students attending colleges which have marketing agreements with banks and other financial institutions paid much higher overdraft and account fees than students at schools with no such deals, the study found.

“Wells Fargo charged students the most of all those with college campus marketing agreements—an average of $46.99 per account per year, while banks without such deals charged students an average of $11.93 in fees,” Kate Berry of American Banker reported.

http://www.nationalmemo.com/how-trump-and-devos-encourage-education-ripoffs/

-snip-

In a form of what is apparently a legal kickback, 116 colleges were paid $16.7 million by banks and credit unions to promote financial accounts in 2017, deals designed to capture young customers whose financial resources would be expected to grow over time. PNC Bank paid colleges $7.6 million, U.S. Bank paid $3.2 million and Wells Fargo paid $2.1 million.

Significantly, lower fees were paid by students at the 457 colleges which did not get kickbacks. The estimated 839,000 students at colleges without marketing agreements paid $11.93 on average in fees, compared with $36.52 for the 482,000 students who used accounts at colleges with marketing agreements.

These fees differences indicate there is no enforcement of a 2015 Obama era rule by the Education Department requiring colleges to exercise reasonable diligence to make sure that under marketing agreements with banks students pay fees “consistent with or below prevailing market rates.”



This just pisses me off to no end......................I really want her and that asshole Mulvaney,the bankers and others to be brought into a hearing.............and explain this shit.............................these fucking libertarian assholes from the James Buchanan school of bullshit libertarian values such as the Kochs and Devo's attack on public education ...................

[MyOwnPeace]

1. When I wrote to my "senator"

Toomey protesting her nomination - he told me how wonderful she was.
Look at Toomey's bank and Wall Street background................ says it all!

[turbinetree]

2. He is such an ass....................another Koch backed lackey

they all come from the same basic training ground of libertarian bull shit..........................I really the new House Congress to drag her ass and Mulvaney's , bankers asses, into a public hearing................and if the answers are full of BS, bring them back the next day.....................enough is enough...........

I am still paying off my college loans, and they are over ten years old and I have another 9 years to go..............

[Johnny2X2X]

3. Sickening

Devos is knee deep in the much with the for profit colleges. ITT will make a comeback soon, might be named something else.

Let me tell you about ITT, I did some work for them in the early 90s, specifically they were just starting up their CAD program there and their first graduates were entering the job search. It was my job to contact engineering firms and try to get interviews for our new grads who had ITT 3 year degrees in AutoCad-13. 1 year after the 1st class graduated, 0 of them had gotten a job in their field, not a 1. Calling and talking to these firms, it was obvious to me that 100% of these places were not looking for someone with that one skill, if they needed someone to do CAD, they'd have one of their engineers learn CAD.

But that's not the bad part. The bad part is I was in a call center with their recruiters. Being a salesperson myself at the time I recognized sales techniques. These recruiters were slimy salespeople. They were looking for a specific student and preying on them. It was disgusting. They looked for students whose parents weren't college educated first, they looked for students from low income areas who went to poor schools, and they looked for students who wouldn't be able to get into any actual college. And they would get these kids into the office with their families and it was lime watching a team of snakes lure mice into their lairs. Everything was orchestrated to guilt the kid and their family into signing paper work. It was hardcore sales techniques, "This is your only chance to do something." "You'll be nothing if you don't sign." "Don't worry a bit about the money, we got that covered." "You'll get a high paying job, our job placement rate is 95%!!" That last 1 was a joke as I literally was in the same room trying to find jobs for people with no success.

What did these kids get? $45,000 in student loans for an Electronics degree that might get them $10 an hour to start. Or a CAD certification that would get them nothing. And this was the early 90s, $45K was a lifetime of debt.

And the professors at this place, zero qualifications to teach, and maybe a cursory knowledge of the topics they were focusing on, just a total ripoff.

They tried to recruit me, I was already at the community college getting some credits before going off to a state university. No thanks, it was obvious to me the scam they were running. They were all getting rich off Federal Student loans and providing nothing to the students who would have to pay the loans.

Devos is working hard to bring all of this back.

[ProudLib72]

5. I took an HTML/CSS class in the fall of 2016

ITT had just shut its doors, and the community colleges were taking in a lot of the displaced students. I remember one guy told me he had already had HTML at ITT, but he had to take it again. I only had that single class, but I wondered how those students from ITT fared at the community college where they had a real, certified program. No doubt many of those students had been duped into believing they were getting a real education at ITT but were, instead, going through bogus classes. It was really sad to think how they had wasted their time and money.

[CrispyQ]

4. Everything and everyone is a potential profit center for the predatory capitalists.

We must all feed the corporate machine.

[Faux pas]

6. Kickin' with disgust

[MyOwnPeace]

7. Thank GAWD.............

"Trump University" wasn't anything like that!