States Crack Down on For-Profit Colleges, Student Loan Industry

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**whembly**

Fafnir wrote:
whembly wrote:
LordofHats wrote:
Good god finally. It's about time they did something about the ponzi scheme that is DeVry (lets check out ITT Tech while we're at it).

Not just for-profit-schools either... All of them.

A serious student-loan fix would change this incentive...

First: federal/state aid ought to be capped (maybe indexed by region or national avg)... which would make it harder for schools to raise tuition at will.

Second: schools that receive subsidized loan money should be left on the hook for a percentage of the loan balance if students default. This would encourage the schools to be more active with the students in planning their education and assist in finding jobs.

Those two would help reign in this madness a bit.

Oh god... I'm agreeing with Whembly. What is this strange feeling I'm feeling?

Because I can be quite sensible at times.

And adorable...

But always ravishing handsome.

**Alfndrate**

soundwave591 wrote:
Im currently in school, and initially I thought 30k sounded like a insane amount that I wouldn't come close to. aaaannd then i realized mine will be closer to 40k really hoping for some scholarships

Again, I'd kill for 40k in debt...

**Cheesecat**

whembly wrote:
LordofHats wrote:
Good god finally. It's about time they did something about the ponzi scheme that is DeVry (lets check out ITT Tech while we're at it).

Not just for-profit-schools either... All of them.

A serious student-loan fix would change this incentive...

First: federal/state aid ought to be capped (maybe indexed by region or national avg)... which would make it harder for schools to raise tuition at will.

Second: schools that receive subsidized loan money should be left on the hook for a percentage of the loan balance if students default. This would encourage the schools to be more active with the students in planning their education and assist in finding jobs.

Those two would help reign in this madness a bit.

Good post whembly.

**soundwave591**

cincydooley wrote:
soundwave591 wrote:
daedalus wrote:
The price of US higher education is amusing, given the (mostly true) stereotype of how education is not valued highly in the US.

is that why its expensive? because its not valued so its a rare commodity?

No. It's expensive because you can't discharge student loans like any other debt.

Federally backed guaranteed debt + "everyone must go to college myth" + unscrupulous lending = colleges can cost whatever universities want.

I know, it was just a funny thought, at least to me