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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsFor Profit College, Student Loan Default, and the Economic Impact of Student Loans
For Profit College, Student Loan Default, and the Economic Impact of Student Loans
run75441 | November 8, 2015 8:00 pm
For Profit Goes on Probation
The University of Phoenix has been placed on probation by the Department of Defense preventing the university from recruiting on military bases. The probation comes after the Federal Trade Commission and the California Attorney Generals investigation into the University of Phoenix recruiting methods, its high costs, and the resulting poor student performance.
This is not the first time Phoenix-U has been in trouble. In 2013 the University of Phoenix was threatened with probation by the accreditation board for a lack of autonomy from its corporate parent - a development that prevented the university from achieving its mission and successful operation. In other words, the for-profit university #1 priority by its owners was to turn a profit at the expense of teaching, retaining, and graduating its students. This is precisely what I had alluded to previously on higher rates of defaults.
Student Loan Defaults
An interesting analysis by the NY Fed suggests students with lower amounts of student loan debt are more likely to default than those students with higher amounts. This is a new take on student loan debt and associated default as it was always thought the higher the debt the greater risk of default. Student Loan Debt has increased as more attend college, costs to attain an undergraduate degree have increased, even higher costs are sustained for Masters and Doctorate degrees, and students have been staying in school longer. Coming out of college the study finds amongst students loan debt is distributed rather evenly over time with one third being held by those in the 20s, one third held by those in the thirties, and one third held by those forty years of age and older. A large percentage of those borrowers or ~39% of them have loans of less than $10,000 and it is the holders of debt who have been defaulting at a higher percentage. The study goes on to break it down as to why they might be defaulting more frequently than tose with higher amounts of debt.
Using Equifax credit data, the NY Fed broke down the data into loan origination cohorts of student loan borrowers and using the same Equifax data, developed default rates for each cohort. Taking the origination date information for each academic year, the Fed was able to assign borrowers to loan-origination-completion-cohorts. The analysis did not reveal dropout or graduation information; however by using loan origination data, the methodology used does approximate whether students left school finished their education or just left school. ...............(more)
- See more at: http://angrybearblog.com/2015/11/for-profit-college-student-loan-default-and-the-economic-impact-of-student-loans.html?utm_source=feedly&utm_medium=rss&utm_campaign=for-profit-college-student-loan-default-and-the-economic-impact-of-student-loans#sthash.fTTUuHu0.dpuf
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For Profit College, Student Loan Default, and the Economic Impact of Student Loans (Original Post)
marmar
Nov 2015
OP
Football coaches @ 3.5 mil. Does that break it down low enough for ya? n/t
HickFromTheTick
Nov 2015
#4
smirkymonkey
(63,221 posts)1. K&R
marmar
(77,077 posts)2. PM kick
hifiguy
(33,688 posts)3. The entire notion of a "for-profit college"
is an obscenity. And now there are so many crooked ones issuing degrees that are essentially worthless in the real world, that the should all be shut down, for fraud if nothing else.
But they own lots of congresscritters, so they will continue looting the US Treasury for the forseeable future.
HickFromTheTick
(56 posts)4. Football coaches @ 3.5 mil. Does that break it down low enough for ya? n/t
Logical
(22,457 posts)5. Major sports make more than the cost for most big schools. Nt