excellent article comparing for-profit schools and the sub-prime mortgage crisis

Gary Lapon’s College, Inc. discusses the findings from a two-year investigation by the Senate Committee on Health, Education, Labor and Pensions. For a clear wake-up call on education, please read this article. If you wonder about student-loan default, read this article.

Here’s one chilling passage:

According to the Harkin report, the Apollo Group, the largest of the for-profit education companies and operator of the infamous University of Phoenix, “$3.1 billion in federal student aid, in addition to $46 million in military education benefits…86.8 percent of the company’s revenue, and $925 million of their profit, is attributed to federal taxpayer sources.”

Watch any of the ubiquitous TV ads for for-profit schools and some other online programs, and you’ll notice that the core image is attaining the American dream through education. Instead, students remain undertrained, overcharged, and indebted. Who profits? Not the students.

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