Author Topic: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
PhillsburyBandit 
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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
Dennis Carter posted:
Allegations brought by a former admissions manager at an online for-profit college describe a systematic attempt to deceive incoming students into signing up for pricey college loans while the school overstated students’ success in finding jobs after graduation.

The whistleblower lawsuit is the latest legal blow to Education Management Corp. (EDMC), a Pittsburgh-based for-profit college company that drew scrutiny from the Department of Justice last year after a former employee charged that EDMC violated federal law by awarding bonuses to school recruiters based solely on the number of students they enrolled.

The latest whistleblower suit, made public March 15, accuses EDMC of defrauding U.S. taxpayers by enrolling “as many students as possible for as long as possible to maximize financial aid” while targeting “a troubled population, including … the poor, the undereducated, the homeless, those who were the first in their families to attempt higher education, those with criminal records … and those living in shelters and halfway houses.”

The suit was brought by Jason Sobek, a former admissions officials at South University’s online program who said that EDMC’s “very livelihood” of recruiters – who enrolled many students into online courses – were dependent on recruitment quotas, which, if true, would violate U.S. law.

For-profit schools like South University “have essentially borrowed the business model of the predatory lending industry, taking zero risk in signing up students for federally-guaranteed loans,” the lawsuit said.

While 11 percent of college students attend for-profit schools, they account for more than four in 10 student loan defaults and 26 percent of loan borrowers, according to Education Department (ED) statistics. Meanwhile, for-profit colleges make most of their money from federal financial aid.

Sobek echoed a common criticism of the for-profit education sector when he charged that admissions officers at South University were encouraged to mislead incoming students because “corporate investors were monitoring their enrollment numbers,” and the school wanted to show their investors consistent growth.

Recruiters who did not meet monthly quotas for enrolling students into online and traditional courses were fired, according to the lawsuit.While 11 percent of college students attend for-profit schools, they account for more than four in 10 student loan defaults and 26 percent of loan borrowers, according to Education Department (ED) statistics. Meanwhile, for-profit colleges make most of their money from federal financial aid.



http://www.ecampusnews.com/policy/litigation/online-for-profit-colleges-compared-to-predatory-lending-industry-in-whistleblower-lawsuit/


Lol targeting the homeless and people living in halfway houses? Thats so low man like you can't get sleazier than that. laugh peace

 

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Yukishiro1 
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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
I don't know why anyone would be surprised. It is pretty obvious what is going to happen when you let for-profit institutions get tons of free federal financial aid money based on how many students they have.

 

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Brother_Tempus 
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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
This is a government created issue. Get rid of Title IV of Higher Education Act and this ceases to be problem

 

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Yukishiro1 
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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
Orrrrr you could just not let for-profit schools get federal financial aid.

 

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PhillsburyBandit 
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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
Yukishiro1 posted:
I don't know why anyone would be surprised. It is pretty obvious what is going to happen when you let for-profit institutions get tons of free federal financial aid money based on how many students they have.



Its hilarious how students have to borrow their own money then pay it back when its all taxpayer money to begin with lol. Wtf kind of stupid program is that?

Gov't: Hey I have an idea! Lets take money from taxpayers and loan it back to them so they can go to school and make this huge ass student loan bubble that will never get repaid and f*ck up the economy even worse! Yeah! laugh peace

 

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Seething199 
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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
PhillsburyBandit posted:
Yukishiro1 posted:
I don't know why anyone would be surprised. It is pretty obvious what is going to happen when you let for-profit institutions get tons of free federal financial aid money based on how many students they have.



Its hilarious how students have to borrow their own money then pay it back when its all taxpayer money to begin with lol. Wtf kind of stupid program is that?

Gov't: Hey I have an idea! Lets take money from taxpayers and loan it back to them so they can go to school and make this huge ass student loan bubble that will never get repaid and f*ck up the economy even worse! Yeah! laugh peace


the system worked out great for decades. the for-profit university scam was bound to happen eventually. but it's a pretty big part of the problem we're having now. what's the graduation rate for the university of phoenix? like 30%?

 

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Brother_Tempus 
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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
Yukishiro1 posted:
Orrrrr you could just not let for-profit schools get federal financial aid.




all must be equal under the law otherwise the law is then illegal

 

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PhillsburyBandit 
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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
Seething199 posted:
PhillsburyBandit posted:
Yukishiro1 posted:
I don't know why anyone would be surprised. It is pretty obvious what is going to happen when you let for-profit institutions get tons of free federal financial aid money based on how many students they have.



Its hilarious how students have to borrow their own money then pay it back when its all taxpayer money to begin with lol. Wtf kind of stupid program is that?

Gov't: Hey I have an idea! Lets take money from taxpayers and loan it back to them so they can go to school and make this huge ass student loan bubble that will never get repaid and f*ck up the economy even worse! Yeah! laugh peace


the system worked out great for decades. the for-profit university scam was bound to happen eventually. but it's a pretty big part of the problem we're having now. what's the graduation rate for the university of phoenix? like 30%?



Do you know university of phoenix doesn't even tell their students who are felons that they can't get a job with a criminal justice degree in the law enforcement field? They just let them enroll they don't even care. laugh

http://answers.yahoo.com/question/index?qid=20111218121343AAdqsjf

 

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Yukishiro1 
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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
Seething199 posted:

the system worked out great for decades. the for-profit university scam was bound to happen eventually. but it's a pretty big part of the problem we're having now. what's the graduation rate for the university of phoenix? like 30%?


Yeah there's nothing wrong with the basic student loan system. The problem is thinking you can apply it to for profit institutions. It was more magical thinking from the right about how profit-seeking will create good outcomes no matter what.

 

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Kjarhall 
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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
Brother_Tempus posted:
Yukishiro1 posted:
Orrrrr you could just not let for-profit schools get federal financial aid.




all must be equal under the law otherwise the law is then illegal


It is equal, everyone has the opportunity to go to a not for profit school.

 

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Brother_Tempus 
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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
Kjarhall posted:
Brother_Tempus posted:
Yukishiro1 posted:
Orrrrr you could just not let for-profit schools get federal financial aid.




all must be equal under the law otherwise the law is then illegal


It is equal,


if you remove access fir some as was proposed, then it is no linger equal

But technically since the Constitution dies not grant government the power to meddle in the education industry, Title IV is illegal anyways and should be repealed

 

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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
My wife is in a masters program at George Washington, we were going to use credit card to pay for it. Apparently Obamacare will not let you do that any more. The made us get a get a loan through the department of education. Pain in the ass.

 

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Kjarhall 
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no access was removed in the proposal, everyone can attend a non profit school.

 

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Brother_Tempus 
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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
Thugoneous posted:
My wife is in a masters program at George Washington, we were going to use credit card to pay for it. Apparently Obamacare will not let you do that any more. The made us get a get a loan through the department of education. Pain in the ass.



really?

was this private or public school?

 

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Remnant_OBrien 
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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
A DOE loan is probably better than putting it on a credit card.. better interest rates.

 

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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
The only college placement agencies that don't lie about placement are public institutions.

I remember having a very heated conversation with my bro-in-law about the associates degree in technological applications he wanted to get from unaccredited private 18 month program in TN. I tried to explain to him that EVERYONE can get a job. A placement agency that says 90 percent of their graduates land jobs within 6 months and give no other information are likely filling the rank and file at Mcdonalds restaurants.

But he went through with it, and 34 thousand dollars and 18 months later realized I was absolutely right, and has hated me for that every day since.

 

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Ashmaele 
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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
If they're gonna start suing and locking up online for-profit colleges for this they'd better be prepared to do the same thing with law schools because they do the exact same thing (and law school typically costs much much more).

 

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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
Remnant_OBrien posted:
A DOE loan is probably better than putting it on a credit card.. better interest rates.



But at least with a credit card if you go broke you can claim bankruptcy and get away from that debt.

 

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Ashmaele 
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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
DemonicXH posted:
Remnant_OBrien posted:
A DOE loan is probably better than putting it on a credit card.. better interest rates.



But at least with a credit card if you go broke you can claim bankruptcy and get away from that debt.


Back when I was applying to law schools (at the peak of the housing boom/bubble) I read several stories of people paying off their student loans with home equity lines of credit and then simply walking away from their houses.

 

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It's not like the "non-profit" schools aren't doing their own version of student raping. They just dress it up nicer happy

The cost of college nowadays is a shame and a scam.

 

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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
cabbyman posted:
It's not like the "non-profit" schools aren't doing their own version of student raping. They just dress it up nicer happy

The cost of college nowadays is a shame and a scam.


fraud is different than being inefficient and expensive.

 

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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
Ashmaele posted:


Back when I was applying to law schools (at the peak of the housing boom/bubble) I read several stories of people paying off their student loans with home equity lines of credit and then simply walking away from their houses.



That doesn't surprise me. That bad mark on your credit score goes away after 7 years, meanwhile you can't get away from student loans unless you pay them off or die.


My wife is racking up $150k in student loans as we speak, that gives me an idea. thinking

 

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cabbyman 
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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
GrilledCheez posted:
cabbyman posted:
It's not like the "non-profit" schools aren't doing their own version of student raping. They just dress it up nicer happy

The cost of college nowadays is a shame and a scam.


fraud is different than being inefficient and expensive.


Agreed. It's certainly spelled differently...

 

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Yukishiro1 
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Is she going to med school or in the top 25% of her class at a top-15 law school? If not, that's probably a very stupid idea. Maybe business school could make sense too if she's a douche.

 

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Elkad 
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Subject: Online for-profit colleges compared to ‘predatory lending industry’ in whistleblower lawsuit
Ashmaele posted:
Back when I was applying to law schools (at the peak of the housing boom/bubble) I read several stories of people paying off their student loans with home equity lines of credit and then simply walking away from their houses.


My brother did exactly that. Caught the boom just right in Portland, took out a huge 2nd, paid off all his loans, and then dumped the house.


Thugoneous posted:
My wife is in a masters program at George Washington, we were going to use credit card to pay for it. Apparently Obamacare will not let you do that any more. The made us get a get a loan through the department of education. Pain in the ass.


So put something else on the card (house payment?) and throw all that money at the student loan.

 

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Yukishiro1 posted:
Is she going to med school or in the top 25% of her class at a top-15 law school? If not, that's probably a very stupid idea. Maybe business school could make sense too if she's a douche.


Veterinary school at the #2 ranked school in the country.

 

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Yukishiro1 
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I dunno how vets do in terms of income. I would think it would be tough because people don't have insurance and are unlikely to want to pay a lot of money. On the other hand, I guess you arn't required to treat people who can't pay. So maybe you it's ok.

 

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It's sad how some of the online schools operate.

I know a woman who is spending a TON of money to take online courses from some "University". Of course, she isn't spending any money now, hell she even got back more money on her taxes this year because she is enrolled in this school. No, all the costs are in the future, as she racks up 10's of thousands of dollars in debt....for an "education" that is probably worthless, and is certainly inferior.

She has asked me for help a couple of times with her studies, (she is getting a business administration degree). One of her classes was "Ethics of business" and it was the most unholy mishmash of stupid you have ever seen. Basically broke down to "do business like the bible says you should"......which is actually a quote from one of the "professors" who lead the course.

For such inspired and creative instruction, she is paying 14K a year....well, she will be paying eventually. And probably forever. This woman is not a paragon of intellect and her chances of actually completing this program are probably somewhere between zero and "not a chance in hell".

Her boyfriend, who has never held a job in his life for even 1 second (he has a "heart condition" and "trouble talking to people"....AKA weighs over 400 lbs and is strung out on drugs 99% of the time) is also enrolled in classes at the same "university"....and recently got a tax refund (how the hell I do not know) which he used to get a laptop from Rent-a-center which will end up costing him more than 3800 bucks if he ever pays it off. The exact same model is on sale at Walmart for 299 dollars. Tried to explain that to him but he is so proud of his new puter he insists it has to be better than that one at Walmart because...it costs so much more. doh! He is taking classes in criminal justice and wants to be a deputy sheriff......

Some people should not go to college, hell I'm probably one of them. I never used my degree and know next to nothing about what I studied all those years ago.

 

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