Universities to Lose Federal Aid
Are for profit universities going to lose federal aid funding?
For profit colleges and universities in the Unites States are up for a pretty big fight against the federal government’s federal aid programs. Legislation is being introduced to cut aid to programs that make big promises, but fail to deliver.
Since the tax payers in this country are paying for people to get degrees, it is only fair that they are able to make the money to pay it back when graduating from college. The programs under the most scrutiny are the ones that are housed at traditional trade schools. You can attend a trade school, take out huge loans and possibly get a job making $10 an hour after graduation. This paltry amount is nowhere near enough to pay back the massive amount of loans that were taken out by the student to get this degree or certificate.
One solution suggested was to make any program ineligible where the students’ loan payments would be more than 8% of their income if they were on a 10 year loan repayment plan.
This is coming at a time when these for profit institutions are being heavily scrutinized for their high student loan default rate, low job placement rate, and low graduation rates.
It is estimated that 300,000 students could be out of their programs if these new regulations go into effect. A study done shows that 12% of student attending public schools leave college with more than 30 grand in debt, compared to a whopping 53% at the for profit schools.
I have always advocated for students to attend a community college for 2 years and then move on to a 4 year public institution. This way the student is eased out into the real world and has a much better chance at success. The saving of attending a community college and 4 year public university are enormous.