http://www.npr.org/blogs/ed/2015/03/31/3...t=20150401


This saga began last July, when Corinthian Colleges, a for-profit chain with 70,000 students across more than 100 campuses, ceased operations in response to a federal regulatory crackdown.

In September, the Consumer Financial Protection Bureau(CFPB) sued Corinthian, accusing it of predatory lending practices. Weeks later, roughly half of its campuses were sold to the Educational Credit Management Corp., a financial company with no prior experience operating colleges.

Finally, in February, the CFPB and the Department of Education announced the forgiveness of $480 million in private student loans held by former Corinthian students.

But those are just the private loans. Borrowers are still on the hook for hundreds of millions of dollars in federal student loans — money that the Department of Education expects to be paid back. That's true even for students who never earned their degrees, on campuses that are being shut down.

https://www.bostonglobe.com/business/201...story.html

The pitch made by for-profit colleges, a staple of daytime and late-night TV, often features successful alumni from the schools, from Pulitzer Prize-winning photographers to Hollywood animators. Yet the US Department of Education estimated that 72 percent of the for-profit programs at 7,000 schools produced graduates who on average earned less than high school dropouts.

Many of those students — veterans, single mothers, teenagers — end up in debt, often without degrees, jobs, or prospects.

The practices of for-profit colleges have come under scrutiny in recent years, prompting federal and state investigations, lawsuits, and enforcement actions. The US Consumer Financial Protection Bureau last month sued Corinthian Colleges, alleging that the nation’s largest for-profit chain engaged in predatory lending.

Government sets up a loan program and business open up to get the money. Does this surprise anyone? Keep in mind the "non profits" are taking avantage of the governments/peoples money as well. Have to question if some of the "non profits" are "nonprofits"when they are paying football coaches $40 million dollars. Or when universities count the football stadium as part of overhead in their federal contracting for research.