Mayhem Is Coming

00Burdell said:
Many for-profit schools - esp ones that offer online degrees tend to admit anything with a pulse just to use the applicant/student to generate student loan income. Works like this: apply - routed to fin aid - get approved for federally-subsidized student loan - keep student in school as long as possible to continue income stream. Student/education is secondary consideration (if a consideration at all).
Click to expand...
You mean like every liberal arts university?
 
If I weren't so busy and didn't have so much to do, I would sum up the total student loan defaults by school. Pretty sure that would tell an interesting story.
 
Last edited:
beej67 said:
Do you have the data?
Click to expand...
No, I would have to dig around for it.

Well that didn't take long. Student Loan Report. Navigate down to default rates by school then download in Excel.

But I took a quick look and it looks like non-degree schools are included (barber school, cosmetology, cooking, electronics, etc.). Interestingly, the University of Phoenix (the poster child for student loan abuse) is listed as a non-degree school.

Using data from other articles (google "distribution of student loan defaults"), the for-profit schools appear to have a default rate between 13% and 20% while normal colleges/universities are comfortably below 10% (on average). So the hypothesis stands: for-profit schools' students default on their loans far more (sometimes at a multiple of the non-profit school's rate) than non-profit schools.
 
Last edited:
00Burdell said:
No, I would have to dig around for it.

Well that didn't take long. Student Loan Report. Navigate down to default rates by school then download in Excel.

But I took a quick look and it looks like non-degree schools are included (barber school, cosmetology, cooking, electronics, etc.). Interestingly, the University of Phoenix (the poster child for student loan abuse) is listed as a non-degree school.

Using data from other articles (google "distribution of student loan defaults"), the for-profit schools appear to have a default rate between 13% and 20% while normal colleges/universities are comfortably below 10% (on average). So the hypothesis stands: for-profit schools' students default on their loans far more (sometimes at a multiple of the non-profit school's rate) than non-profit schools.
Click to expand...
I'm no fan of for-profit schools, and I realize that you're just relaying info... but that correlation data needs to be read with a grain of salt, without better causation analysis.

The for-profit schools attract/recruit much worse students – they're poorer, they have more disrupted family lives, they're less well prepared academically, etc. In many respects the for-profit schools function as second-chance opportunities for kids who can't get into or feel out of place at traditional colleges.

I'm sure the profit motive plays a role in how the for-profit schools recruit students – but the other side of the coin is that they're filling a market void! Now obviously cheap and easy student loans are inflating that demand – but that major, serious problem is independent of the for-profit/non-profit distinction.

Bottom line, gonna need much more complicated analysis to figure out the extent to which the for-profit/non-profit distinction affects default rates.
 
jacket67 said:
Lots of non-profit entities pay their executives million-dollar salaries, and lots of for-profit entities lose money every year. I don't think the labels really mean much other than for accounting and tax purposes. People who associate profit with greed and evil get all warm and fuzzy over something being non-profit, but in truth, it's more complicated than that.
Click to expand...
Absolutely....my company shares building space with a globally known non-profit. It is their headquarters. Talking with many on the elevator and in the lobby you see that they do quite well for themselves...plus some of their rides in the garage are six figure vehicles. I have nothing against them. They do great work and rely heavily on volunteers and donations. But if for a second you think that they have taken a vow of poverty, you are sorely mistaken.
 
Buzz'n said:
Absolutely....my company shares building space with a globally known non-profit. It is their headquarters. Talking with many on the elevator and in the lobby you see that they do quite well for themselves...plus some of their rides in the garage are six figure vehicles. I have nothing against them. They do great work and rely heavily on volunteers and donations. But if for a second you think that they have taken a vow of poverty, you are sorely mistaken.
Click to expand...

This
 
Buzz'n said:
Absolutely....my company shares building space with a globally known non-profit. It is their headquarters. Talking with many on the elevator and in the lobby you see that they do quite well for themselves...plus some of their rides in the garage are six figure vehicles. I have nothing against them. They do great work and rely heavily on volunteers and donations. But if for a second you think that they have taken a vow of poverty, you are sorely mistaken.
Click to expand...

Depends on the non-profit. My wife works in the space professionally. There is a broad spectrum from The Salvation Army to Susan G. Komen.
 
ScionOfSouthland said:
Depends on the non-profit. My wife works in the space professionally. There is a broad spectrum from The Salvation Army to Susan G. Komen.
Click to expand...
Susan G. Komen is a joke. Only 20% of dollars donated to that sham organization are forwarded to actual research.
 
Last edited:
You must log in or register to reply here.
Back
Top