University of Phoenix Tops Debt Slave Racket with 35,049 Student Loan Defaults

Global Economic Analysis ^ | 09/11/2012 | Michael Shedlock

[gunnut]

Those numbers are worthless. You need to look at percent of total loans in default, not raw numbers. Last time I checked, University of Phoenix had an enrollment of 400,000, so I wonder how many total loans they have out there. Not surprised they have 32,000 loans in default in raw numbers, given their high enrollment.

Exactly. But this analysis would not meet their agenda of profit is bad. How about some traditionally black colleges and their rates of default?

[VanDeKoik]

“They entice desperate, broke people into taking out loans for worthless degrees”

That’s 99% of universities today!

[Onelifetogive]

I’m not defending U of Phoenix, but an absolute number of defaults is a meaningless stat. A percentage default rate would actually make sense.

[Mr. Jeeves]

Most of the time to a hiring manager, University of Phoenix = Resume in Circular File.

[Dan Cooper]

Blame Congress for making student loans non-dischargeable. This is causing a new bubble. Many “students” are taking out loans for living expenses etc. and not bothering to attend classes or do the minimum amount of work to keep the financial aid coming. This is obviously a setup for another bailout of the financial institutions that make these loans.

[Buckeye McFrog]

I vaguely recall an article several years ago about the ownership of one of those for profit schools being associated by ownership with the Washington Post newspaper.

The President of one of the biggest ones is married to one of the RINO sisters from Maine.

[veracious]

The question of interest, would be why, UofP? and therefore, _who_ at UofP. Ie., are these students illegal immigrants?

[MaxMax]

Did the students have guns to their heads when they signed those loan agreements?

Nope. And by golly they have a right to a college education. Well they also
have to pay that right back. I guess teachers never explained real life to them.
I have a hunch that many also have CC debt up the wazoo to boot.

[riri]

I have a friend who work in HR, she says University of Phoenix resumes are the first to get shredded.

[fella]

So all those cookie-cutter on-line MBA’s are unable to pay their bills. It's good to see the people who created our economic mess (MBA’s) being hoisted on their own petards.

[Buckeye McFrog]

My college age children tell me the campuses are abuzz with rumors that Obama is going to forgive all their loans in a second term.

[oh8eleven]

So all those cookie-cutter on-line MBA’s
Many years ago (~1979) Kodak came out with the Disc Camera that proved to be a terrible product and failed miserably. The project manager's initials were LM.
A few years later, he went to the Univ of Rochester Graduate School of Management to teach ... future MBAs (go figure).
And where did Kodak send all of its management "geniuses" for their MBAs? The Univ of Rochester Graduate School of Management.

[Reeses]

These places should be made to originate their own loans, and eat the loss if they admit people who cannot get a job with their degree.

The Just Us Dept. would seize their bank accounts the second they reduced accepting protected minorities. There just aren't enough academically qualified non-Asian minorities to go around.

[OldPossum]

I have a dream that someday, all people, of every race creed and color, will go to college.

And then, all people will realize that they flushed $100k down the toilet.

And the, maybe, just maybe, we’ll get over this college thing

No, we won't. See the Supreme Court case, Griggs v. Duke Power (1971) and its implications (the main one: college degrees became proxies for IQ tests). This is what set this whole madness about college education for everyone (it took time but it was inevitable) into motion.

[OldPossum]

I have a dream that someday, all people, of every race creed and color, will go to college.

And then, all people will realize that they flushed $100k down the toilet.

And the, maybe, just maybe, we’ll get over this college thing

No, we won't. See the Supreme Court case, Griggs v. Duke Power (1971) and its implications (the main one: college degrees became proxies for IQ tests). This is what set this whole madness about college education for everyone (it took time but it was inevitable) into motion.

[St_Thomas_Aquinas]

Got a link or book recommendation? I’ve never been able to figure out the connection between college degrees and business. It’s a pet peeve.

[OldPossum]

The most complete paper I have run across is produced by the John William Pope Center for Higher Education Policy. It’s entitled “Griggs v. Duke Power: Implications for College Credentialing.”

I copied down the URL and it’s http://scribd.com/doc/9912960/Griggs-vs-Duke-Power. I hope that I didn’t transpose anything but I don’t think so. If that doesn’t work, the same paper can be found by going to www.centerforcollegeaffordability.org and clicking on “Credentialing.”

As I understand it, the Supreme Court decision forbade companies from administering written tests that could be challenged in court as not being germane to the job for which the applicant was applying.

Griggs and those who joined him in the suit were black, and is as usual, they went to the courts when they thought they were being discriminated against.

I think that it took a lot of time to have an impact but it came down to this: companies gave up on tests and went to the college degree as a substitute to weed out those who probably could not pass an IQ test.

It must have been a common practice to administer these tests prior to this SC decision. I know that upon my graduation in 1966 the one and the only company I applied to required that I take an IQ test before being hired.

You can readily see how this 1971 case was in fact the College Professors Full Employment Act.

[St_Thomas_Aquinas]

Thank you! I knew the government had to be involved, but I couldn’t find the mechanism.

[firebrand]

Here is the Village Voice article. Read and weep.