Posted on 01/20/2011 7:35:50 AM PST by tosh
...As a for-profit institution, CEC has faced increasing pressure from the Obama administration and Senate Democrats in the past year. A proposed "gainful employment" rule from the Department of Education would deny federal funding to schools with graduates facing high proportions of debt related to their expected salaries.
...Mr. Miller cited the "gainful employment" rule as a major factor in CEC's decision to close the Pittsburgh school, and he predicted that it would soon affect other for-profit schools in the area.
Read more: http://www.post-gazette.com/pg/11020/1119287-34.stm#ixzz1BacTfnwB
(Excerpt) Read more at post-gazette.com ...
Actually I kind of agree, why are tax dollars being spent to subsidize the education of people (50k -100k) etc to get jobs that will probably not pay them much more than minumum wage when they graduate?
The schools can exist, but why should tax dollars be subsidizing educations with such little cost to benefit?
Note the Department of Education is apparently targeting only for profit colleges.
Looks like the school doesn't have the meatballs to run this without government loan students.
So what's the new criteria for the student loan cut vs expected earnings? what was it before?
Similar things in NYS
Sorry, but the proposed gainful employment rules make some sense. The only schools who are going to lose their funding are those who take in a higher rate than average of student loan dollars, have very high student loan default rates, and very high loan to job salary figures.
Bottom line: taxpayers shouldn’t be subsidizing loans at schools where students are borrowing out the nose only to find that they cannot get a job and pay back the loans. One can argue that taxpayers shouldn’t be subsidizing any student loans, but if we are going to cut them, we should start cutting where they are least likely to be paid back.
Note: these regulations appy to ALL schools, not just for-profit schools. The for-profits are making the most noise about it because they know it will hit them the hardest, as their students default at an incredibly high rate.
unintended consequence of the Obama Administration’s jihad against for-profit institutions.
“Looks like the school doesn’t have the meatballs to run this without government loan students.”
This is the entire issue. Many of these for-profits are basing 80-90% of their budgets on federal loans. Without the loans, the schools will go under.
The regulations have always said that schools had to show that their programs led to ‘gainful employment’ to be able to participate in federal loan programs, but there has never been a ‘test’ or a formula to prove it. The new regulations try to quantify it.
Sorry, the ONLY Le Cordon Bleu is in France.
The US ‘schools’ are fakes.
Looks like this regulation hasn’t hit the books yet.
http://www.ed.gov/news/press-releases/department-track-implement-gainful-employment-regulations-new-schedule-provides-
It seems every major city has a crappy school by that name that advertises on late night TV witb commercials that look like they were made in someone’s basement.
Here is a chart that compares default rates at public, private and for-profit schools.
http://www2.ed.gov/offices/OSFAP/defaultmanagement/instrates.html
Meatballs. Ha!
Yep. These “schools” are really just pipelines to federal loan dollars. The school gets the money, the student is left holding the bag.
I think you are right.
I think I should point out that one of the grand Urban Redevelopment schemes that the City of Pittsburgh has employed in recent years is to convert abandoned downtown office buildings into student housing, which was filled largely by students from for-profit schools like Cordon Bleu, Art Institute, etc.
Part of their plan to remake downtown on the funky-hip-Euro-residential downtown model. Guess that’s up in smoke.
Anyone interested in a loft over an abandoned wig shop?
Le Cordon Bleu has 17 schools+online throughout the United States - wonder how many of them will be closing with these new regulations...
http://www.chefs.edu/
From the website it looks like it is affiliated with the ‘real’ Le Cordon Bleu schools throughout the world (using the same logo)
Yep. These “schools” are really just pipelines to federal loan dollars. The school gets the money, the student is left holding the bag.
I would agree with you except that a Womens Studies degree from Yale or SUNY Buffalo probably holds even less potential for “gainful employment”.
A friend of mine taught in one of those private computer schools. There was great pressure to pass everyone. He didn’t and of course he was not invited back to teach a second semester. He said not one of his students was employable to work on/with computers. They were all getting federal loans.
“I would agree with you except that a Womens Studies degree from Yale or SUNY Buffalo probably holds even less potential for “gainful employment”.”
Probably so, but the students that graduate from Yale and SUNY Buffalo pay their loans off at a much higher rate than the average for-profit school.
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