Three years after the U.S. housing market collapse, our country continues to suffer the effects of misplaced priorities and weak regulation of subprime mortgage lenders. Meanwhile, as a new report from The Education Trust warns, the most vulnerable Americans are being targeted by yet another set of corporations peddling access to the American dream but delivering little more than crippling debt. This time, it’s underregulated for-profit colleges.
Racking up eye-popping profits fueled by federal student aid subsidies and high-cost private student loans, these institutions have increased their enrollments by an astonishing 236 percent over the last 10 years. Their stockholders are literally making out like bandits, while their students – many of whom are low-income and minority – generally find little academic success.
In “Subprime Opportunity: The Unfulfilled Promise of For-Profit Colleges and Universities,” read how high costs combined with low graduation rates at for-profit institutions dim the dreams of too many students who place their trust – and their futures – in the hands of these companies.