Federal Response To Student Loan Crisis

By Paul Reinfeldt


After months of deliberation, the Obama management issued a planned gainful employment regulation in an effort to shield students from programs at for-profit faculties that leave them with unmanageable debt and unworthy degrees. The proposed rule includes provisions requiring profession education programs to satisfy particular standards regarding the debt-to-earnings ratio and default rate of grads. While I might have liked to see a stronger rule -- one that comprises, for example, loan repayment rates as a metric and also a brand new program approval process -- it is a step forward.

Overly frequently, for profit schools get away with utilizing marauding and deceptive strategies to intimidate our most exposed pupils -- including minority, veteran, and low income pupils -- into "vocation" plans that neglect to make them vocation-prepared. As an instructor of primarily low income and minority pupils for over 20 years, I understand what these pupils want from post secondary education.

In Congress, I've led multiple efforts to educate my fellow co-workers and to support the government's rulemaking procedure for gainful employment. Unfortunately, I've found the issue is little comprehended here on Capitol Hill. And the strong for-profit lobby is grim -- equally in its portrayal of for-profits as victims in this debate as well as in its campaign contributions.

For-gains like to maintain they are student-centered and devoted to serving, educating, and preparing underrepresented and underserved peoples for the workforce, but the numbers tell a different story. The Department of Education reports that for-profit programs account for just 13 percent of post-secondary students, but nearly half of all student loan defaults. And a tiny over a quarter of for-profit colleges produce graduates who earn significantly more than high school dropouts. Meanwhile, most for-gains receive between 80-90 percent of their sales from federal student assistance.

Perhaps even more telling than these data is the truth that the very organizations dedicated to advocating for and safeguarding minority, veteran, and low income inhabitants are distrustful of for profit systems and support powerful gainful work regulations. These teams comprise the AFL CIO, NAACP, League of United Latin-American Citizens (LULAC), Iraq and Afghanistan Veterans of America (IAVA), Pupil Veterans of America, and many others. Actually, in a gainful work briefing that I formed on the Hill for Members of Congress as well as their employees, representatives from several of the groups spoke passionately about the dangerous effects several of these plans have had on these populations.

Despite substantial attempts by the Organization of Private Sector Schools and Colleges I understand that there's powerful support in the House of Reps for gainful work regulations.

My employees and I've met with for profit school representatives several times. In all these assemblies, we learn exactly the same rhetoric -- our plans are doing their occupation, they're all correctly accredited, our graduation and employment-placement speeds are great.

Again, the government's planned rule is a solid move toward shielding our pupils. I trust that as the rulemaking procedure continues to move forward, you will find chances to make the rule even more powerful. And to all of the pupils who have endured because of poor career-education programs, I expect you inform your narrative and talk up.




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