A reader sent this article in. It made my day, enjoy!
Could the tide be turning? For-profit colleges are starting to get burned. And for added fun, they face more regulation and higher costs:
The government is now cracking down. The U.S. Education Department has proposed restricting admissions growth or cutting federal funding if not enough students can repay their loans. This would partly be based on starting salaries following graduation. The significance of these new schoolyard rules can’t be understated: federal aid makes up at least three-quarters of revenue at many for-profit educators.
The real toilet colleges will get toasted first:
Preliminary estimates suggest many of the big schools will get hit. Corinthian Colleges, the Washington Post’s Kaplan Higher Education, ITT Educational Services, and DeVry had estimated overall loan repayment rates that would fall well below the 45 percent proposed threshold.
Imagine how many law schools will have to shut their doors if these proposals expand to include them. Enrollments will go way down, and standards to get in will go way up. Maybe future classes of lawyers will actually have a shot at getting a job. Another reason to default!