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Christopher Magan writes about higher education.
Kelly Mori writes about health and higher education.Home > Blogs > On Campus > Archives > 2010 > June > 08
Tuesday, June 8, 2010
For-profits fighting new regulations
I just caught up with an interesting NY Times story from Sunday about the fight for-profit colleges are waging against possible regulations that would limit the amount of debt students could take on depending on what they could expect to earn after graduation.
Tamar Lewin reports students would only be able to carry an 8 percent debt-to-income ratio and 10-year repayment schedules. The story also notes that in 2007 students at for-profits made up only 7 percent of those in higher education, but 44 percent of those defaulting on loans. Read The Times story here.
Local for-profits also have high default rates, many in double digits and some above 20 percent. These rates are typically much higher than public and private institutions, but there are a few exceptions, as I reported in May.
Steven Eisman, famous for having anticipated the housing crash, is quoted by The Times saying that without better oversight for-profit student loans could be the next national fiscal problem, with $275 billion in loans at stake.
The Chronicle of Higher Education also reported the for-profit college’s lobbying efforts in a May story.
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