How the For-Profit Education Business Is a Complete Taxpayer Rip-Off
Alter Net — You’ve got to love congressional understatement. Sen. Tom Harkin released a massive report lacerating the for-profit college sector on Monday — the freshest, most comprehensive look yet at how career schools are abusing both American taxpayers and students. The report includes individual breakdowns of the numbers at 30 of the biggest for-profit schools, including Corinthian, which was the subject of a Salon feature two months ago.
Although Corinthian College Inc. offers primarily Certificates and 2-year degrees, the company’s tuition prices are among the highest the committee examined. This forces many students to both borrow the maximum available Federal financial aid and to take on additional private debt. The student withdrawal rates for the Associate programs are among the highest analyzed by the committee staff and the withdrawal rates for the Certificate programs are above the sector average. The company also had unusually high rates of students defaulting on student loans during the period examined. It is unclear that Corinthian delivers an educational product worth the rapidly growing Federal investment taxpayers and students are making in the company.