Students attending college for the benefit of facing a much harder road after leaving the school with students from other institutions, according to federal data that were analyzed in a recent report.
The study, conducted by a team of researchers at Harvard University for the National Bureau of Economic Research, examined a series of federal data, which followed the graduation rates of students, the rates of federal student loan repayment, the success of students in securing jobs, and what those jobs pay. The researchers found that students who attend schools of profit left with more debt from student loans face higher unemployment rates and earn less than similar students in public schools or private non-profit.
For-profit colleges have been attacked in recent years the membership has been a dramatic increase. For-profit, registered schools only 5 percent of all college students in 2001. In 2009 this number had risen to 13 percent. Meanwhile, the profit of the students were consuming a quarter of the financial assistance from the federal government - which under U. S. Department of Education rules, is allowed up to 90 percent of income-for-profit facilities - and were responsible for 15 percent of all defects Federal student loans, more than double the rate of public institutions and more than three times the rate of private institutions.
A probe of infiltration of the federal government in August 2010 found widespread deception and fraud among recruiters, admissions staff and financial aid officers from all 15 colleges of profit have been studied. The government has cried foul, accusing the schools of students who register for access to funds to aid students, regardless of the ability of students to obtain degrees or certificates relevant and help students repay their loans. For-profit universities say they often engraved in low-income students and for the first time that other schools in the past. These students, colleges told, were of course a higher risk of neglect and default on student loans.
The undercover investigation of for-profit colleges marked the beginning of relentless public scrutiny of for-profit schools by legislators, students and consumer advocates. But the Harvard researchers sought to shed new light on the dispute. They asked a question: for-profit colleges "agile creatures" meet increased demand for graduates or "agile predators" is aimed at low-income students to take advantage of their federal funding of taxpayer dollars in financial aid?
Repayment of student loans are much higher among students from the College for-profit
The analysis of federal data has revealed several key statistics:
For-profit universities do a better job than the traditional universities to keep students in the first year of a program of college.
Students' are more likely than community college students to be able to obtain a certificate of two years, but much less likely to get a successful four-year degree students at traditional institutions four years.
Students of schools, for-profit end up with more debt loans for education, a significant improvement in the rate of default, and are less satisfied with their college experience.
Twenty-six percent of university students at a profit out between $ 5,000 and $ 10,000 in student loan default at the end, compared with 10 percent of students in colleges similar communities and 7 percent in four years, schools. Sixteen percent of university students in for-profit borrowed between $ 10,000 and $ 20,000 in student loan default at the end, compared to only 3 percent at community colleges and only two per cent for four years, schools .
Students who attend schools earn less profit than students of traditional schools.
Students who attend schools for profit are also more likely that unemployment six years after college and are more likely to be unemployed for over three months ("College students face higher debt-for-profit, higher unemployment, the report reveals that , "Huffington Post, January 4, 2012).
Ultimately, the report concludes that the regulation-profit college is "thorny issue"
profit because the schools are "a crucial role in increasing the supply of skilled workers in an era of state budgets and the stagnation of the credit crunch for schools in the public sector."
"The challenge," the researchers said, "is to keep track of agile predators, while not stifling innovation of agile creatures."
