Many Schools & Universities forcing students into slavery

[evanrick]

For-Profit schools raping students into slavery

Price of Admission: America's College Debt Crisis

Student loan defaults have doubled in the last five years, half of them at for-profit colleges that operate as a business. CNBC's Scott Cohn reports.

http://www.msnbc.msn.com/id/3032619/vp/40773173#40773173

http://www.cnbc.com/id/40492487

You know when these students start defaulting on these loans, I see another bailout coming.

There should be heavy restrictions as to what taxpayers should be on the hook for, that only taxpayer money can be used to subsidize education loans that go to public universities.

I am far from an expert, but I have a feeling many many universities public and private are using their students to fund ever extravagant sports arenas, staff salaries, bonuses and god knows what else.

This whole system seems to be just another way for the wealthy to use taxpayers and the public to wring money out of them, saddle them with debt and transfer wealth to the already wealthy.

http://www.mndaily.com/2010/10/06/stop-using-students-atms

This article explains how Univ. Of Minnesota is siphoning money off teaching into improving its ranking for federal grants and market research.

Its no wonder the cost of education keeps rising, they are doing less education and using students to subsidize for-profit enterprises.

 

[rareboy]

It has always been this way.

The crisis now is one of demographics.

Fewer students. The same number of schools.

The math is easy.

Fewer students....same overhead costs and increasing liabilities for highly paid staff....impending disaster.

Great Britain is going through it right now, the US is determined to apparently graduate fewer and fewer students who go on to higher education. In Canada, some of the universities are now also in danger of serious financial problems as well.

No bailout is needed though. Student loan default isn't a huge financial issue. Student lending represents a very small percentage of the total consumer loans out. It will just continue to get absorbed on the loss side of all the banks each quarter.

The question is whether the system will allow loans to go into default quicker when all those bright young things with degrees can't find jobs in order to pay the money back.

 

[rareboy]

For-Profit schools raping students into slavery

By the way....really. I mean really????

Rape and slavery because students got a degree and had to borrow for it?

I'm sure that we were shouting the same thing when I graduated and a lot of kids found out that their education payments kicked in and were the same amount as a car payment each month.........but, I know that I was able to work out a repayment schedule with my bank and was permitted to increase or decrease payments if negotiated with my bank loans officer. This loan was the first thing I paid off...deferring the trips, car and a lot of toys until it was paid.

Proportionate to starting income levels, my debt was equal to the graduating students today....and I'm here to tell the tale.

 

[Serenx55]

How many For-profit schools are there in the US again? Except Argosy and Phoenix? For-profit universities usually attract a certain time of person, non-traditional students looking for a degree while they work or underachieving students. Either way very few students go to them simply because of the fact that employers for the most part spit on the degree's.
Anyways its each worse for doctoral grad students who literally are slaves doing cheap labor research and then graduating and never being able to grasp a job.
On the topic of debt. Well people need to start waking up, the reality is that unless you're getting financial aid or grants you need to look for schools that will pay a majority of your tuition. I mean of all my friends most made smart choices and went where the money is or to community colleges and avoided getting into major debt. The problem is that way too many kids don't have a grasp of money and literally think they'll be able to pay off 200k of debt in 5 years.

 

[Orlandude]

How many For-profit schools are there in the US again? Except Argosy and Phoenix? For-profit universities usually attract a certain time of person, non-traditional students looking for a degree while they work or underachieving students. Either way very few students go to them simply because of the fact that employers for the most part spit on the degree's.
Anyways its each worse for doctoral grad students who literally are slaves doing cheap labor research and then graduating and never being able to grasp a job.
On the topic of debt. Well people need to start waking up, the reality is that unless you're getting financial aid or grants you need to look for schools that will pay a majority of your tuition. I mean of all my friends most made smart choices and went where the money is or to community colleges and avoided getting into major debt. The problem is that way too many kids don't have a grasp of money and literally think they'll be able to pay off 200k of debt in 5 years.

That's because too many kids are under the illusion that they are going to get paid some 6-figure salary fresh out of college. Unless you graduated as a doctor or lawyer, that simply is not real world. It is the old "degree myth". In this economy, you'll be lucky to get offered a job at all. I am a firm believer in higher education, however let's face it, degreed people are a dime a dozen now. This isn't 40 years ago where a degree was nearly a guarantee of a good job. Today, a degree guarantees nothing.

 

[Serenx55]

That's because too many kids are under the illusion that they are going to get paid some 6-figure salary fresh out of college. Unless you graduated as a doctor or lawyer, that simply is not real world. It is the old "degree myth". In this economy, you'll be lucky to get offered a job at all. I am a firm believer in higher education, however let's face it, degreed people are a dime a dozen now. This isn't 40 years ago where a degree was nearly a guarantee of a good job. Today, a degree guarantees nothing.

Well not completely true. Those with undergraduate degree's maintained or have jobs during the recession versus those who only have a high school degree. As you continue to go up you'll see better percentages of those who maintained their job or are still employed. While I agree the value of a degree has changed, it is best remembered that only 25% of the country has a college degree. 5% have masters and ~1% have doctoral, it is still a great means to land a job.
But I will however add that colleges need to begin stressing the fact that a liberal arts degree isn't going to be marketable even with a graduate degree for the most part.

 

[MIJ-VI]

Hmm... No wonder some 18-year-olds figure it's just easier to drop their laundry for a pornographer.

 

[chance1]

It has always been this way.

The crisis now is one of demographics.

Fewer students. The same number of schools.

The math is easy.

Fewer students....same overhead costs and increasing liabilities for highly paid staff....impending disaster.

Great Britain is going through it right now, the US is determined to apparently graduate fewer and fewer students who go on to higher education. In Canada, some of the universities are now also in danger of serious financial problems as well.

No bailout is needed though. Student loan default isn't a huge financial issue. Student lending represents a very small percentage of the total consumer loans out. It will just continue to get absorbed on the loss side of all the banks each quarter.

The question is whether the system will allow loans to go into default quicker when all those bright young things with degrees can't find jobs in order to pay the money back.

Not sure where you get your info

More kids are applying to schools than ever

Demand is up which allows colleges to charge more

It's harder and harder to get into "good" schools
And you now have the "sorta Ivy" schools - schools that are not Ivy but present themselves as such
And schools that used to be average but are now good
Bottom line is there is more competition

Personally I think taking out enormous loans is crazy but it's hardly slavery

Individuals have a right to say no to the loans - to go to a more affordable school

Just saying

 

[JB3]

For-Profit schools raping students into slavery

Price of Admission: America's College Debt Crisis

Student loan defaults have doubled in the last five years, half of them at for-profit colleges that operate as a business. CNBC's Scott Cohn reports.

http://www.msnbc.msn.com/id/3032619/vp/40773173#40773173

http://www.cnbc.com/id/40492487

You know when these students start defaulting on these loans, I see another bailout coming.

There should be heavy restrictions as to what taxpayers should be on the hook for, that only taxpayer money can be used to subsidize education loans that go to public universities.

Why? Public universities are not right for all students. That, and private colleges usually give students a better education and are able to manage their finances more responsibly than any public university.

I am far from an expert, but I have a feeling many many universities public and private are using their students to fund ever extravagant sports arenas, staff salaries, bonuses and god knows what else.

No, you're not an expert, and your 'feeling' isn't accurate. Some do, most don't. Speaking in generalizations like you are doesn't help anyone.

This whole system seems to be just another way for the wealthy to use taxpayers and the public to wring money out of them, saddle them with debt and transfer wealth to the already wealthy.

Are you being serious with this comment or are you just baiting for negative comments?

http://www.mndaily.com/2010/10/06/stop-using-students-atms

This article explains how Univ. Of Minnesota is siphoning money off teaching into improving its ranking for federal grants and market research.

Which in turn brings money back to the university to fund education and provide more opportunities for students. With less money available from states for public universities, they're increasingly turning to grants and other forms of revenue to fund education. You mischaracterizing it is not surprising based on the tone of the rest of your comments. (and btw, since when does an opinion column count as an 'article'?)

Its no wonder the cost of education keeps rising, they are doing less education and using students to subsidize for-profit enterprises.

No, costs are rising because its getting more expensive to educate students. Most universities and colleges educate their students at a loss. (that is to say, what the students pay in tuition is nowhere near what it costs to actually educate them) A lot of this can be attributed to the insane bureaucracy at many public schools, but also to the simple fact that education isn't cheap, and the wide range of programs offered at most schools only increases those costs.