Corporate Lobbyists Give Failing Schools a Pass

FOR-PROFITS FLUNK COLLEGE The US asked for-profit colleges to pass a simple test to prove they're helping students get jobs and not wasting taxpayer money. Many for-profit schools would have failed the test, so they lobbied to make it easier. A SIMPLE TEST CALLED "GAINFUL EMPLOYMENT," IT ASKED WHETHER DEGREES LEAD TO JOBS: $16 M The test was designed by the U.S. Department of Education, to protect students. After $16 million in industry lobbying, the test was watered down in every way. 2 THREE HURDLES TO CLEAR THE TEST WAS JUST 3 QUESTIONS LONG. LOBBYING LOWERED THE BAR ON EACH ONE. NO 1 NO 2 NO 3 Can graduates find jobs? Does their pay cover their student loan debt? Can they afford to live? 92% 88% 80% 45% 65% 35% At least +5% 35% of graduates must be able to make payments on their student loans. After making loan payments, graduates must have 92% 88% of their paychecks left. After buying necessities too, 80% 65% is left over for spending and saving. THEY ALSO LOBBIED FOR MORE TIME: DUE DATE: 2012 2015 THE REPORT CARD LOBBYING MADE IT EVEN HARDER TO FAIL: FAIL TAIL PASS PASS 5% 60% 35% No fair! You're mean. 3. Even with the easier benchmarks, 5% of programs couldn't meet a single one. Only they were failed. Only a third of programs passed all three benchmarks. AS IF THE LOBBYING WASN'T ENOUGH, FOR-PROFITS ARE USING LAWSUITS TO FURTHER GUT THE RULES. AND THAT'S JUST THE BEGINNING... WHAT ABOUT THE STUDENTS WHO ENROLL BUT DON'T GRADUATE? A quarter who enroll default on their loans. Half of students never graduate. (They still have to pay back their loans.) FOR-PROFIT COLLEGES ARE NOT LIKE OTHER COLLEGES A for-profit Associate's degree costs 4 times more than a public one. For-profits make a lot of money. In 2009, the 16 biggest schools made: 86% of their profits come from tax-payers, through Federal student loans. $2.7 Bil. Profit united re:public Sourcess: U.S. Dept. Education, HELP Committee Analysis, Chronicle of Higher Ed. UNITEDREPUBLIC.ORG