Gerry Canavan

the smartest kid on earth

Posts Tagged ‘the university is not a corporation

The $ in Univer$ities

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The For-Profit College Rip-Off: Predatory Schools Take 90 Percent Of Revenue From Govt, Leave Students Bankrupt.

The Education Department today released new data on the rate at which higher education students default on their student loans, which showed that students at for-profit colleges — schools like the University of Phoenix or Strayer University — are defaulting at rates far above those at other institutions. In fact, 25 percent of students who attend for profit colleges default within three years. Here’s a chart comparing default rates at different types of schools (the green bar represents defaults at private, for-profit schools).

Here are some more key facts about for-profit colleges:

– Just 11 percent of higher education students in the country attend for-profit schools, yet they account for 26 percent of federal student loans and 44 percent of student loan defaults.

– Many of the schools make up to ninety percent of their revenue from U.S. taxpayersthrough the Pell Grants, Stafford Loans, and other federal assistance used by their students. 91.5 percent of Kaplan’s revenue comes from the government, along with 88 percent revenue at the University of Phoenix.

– CEO’s of for-profit colleges receive up to 26 times the amount of pay that the heads of traditional universities do.

Strayer CEO Robert Silberman was paid $41.9 million in 2009. As Bloomberg News noted, “Silberman’s annual compensation would have ranked him eighth on Equilar’s list of the highest-paid executives at the largest 1,000 companies.”

The schools also engage in aggressive recruiting and marketing tactics, promising students quick degrees and good jobs, when the result is more often a rip-off, resulting in “crushing debt and bleak job prospects.” A new report from the National Consumer Law Center said that the for-profits’ in-house loan programs are, for all intents and purposes, predatory.

There’s still more at the link.

Just a Few More

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* Hugo Chávez on the Twitter.

* BP predicting “lots of illegitimate” lawsuits in the wake of an unprecedented ecological disaster caused by its own negligence because “this is America.”

* Conservatives win big in U.K., because nothing good ever happens anymore.

* David Harvey on the end of capitalism, in long and short forms.

* Frontline on College, Inc.

* And Buzzfeed introduces a whole new generation to time travel’s problem with space. My time travel daydreams have been wrestling with this for years…

It’s Always Our Fault

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UC President Mark Yudof: Many of our, if I can put it this way, businesses are in good shape. We’re doing very well there. Our hospitals are full, our medical business, our medical research, the patient care. So, we have this core problem: Who is going to pay the salary of the English department? We have to have it. Who’s going to pay it in sociology, in the humanities? And that’s where we’re running into trouble.

Yudof, who makes over $800,000 a year, not including his university-provided housing, didn’t meet yesterday with the students who occupied his office—but they were able to meet briefly with two staffers, who claimed to make around $300,000 a year each.