The taxpayers are taking a huge hit indeed. About 90% of funding for these mills comes from the government (us taxpayers). They help bundle and source contributions for politicians who become indebted (just like the world's oldest profession) so laws, regulations and investigations become sort of lax, to put it mildly.
University of Phoenix, Kaplan, Everest, Westech, Potomac, Anthem, Westwood, ATI, ITT, Argosy, Bennett, Corinthian, Ashford, DeVry, heck even Harvard (online) are just some of the ones under investigation.
As of now, student debt surpasses credit card debt (somewhere over $1.3 trillion dollars) and efforts to get student loan rates close to the borrowing rate (less than 1%) have been rebuffed by those very same politicians who rely on those sacred institutions to help finance their personal fortunes. Call me cynical, but I see no reason why the government should make billions on student loan interest payments on the backs of students.
Right now, those colleges are doing their best to head off legislation that ties their right to do business to their job placement ability. A small price to pay for what they boast about but fail to do.
All of this is just another con in a long line of cons (remember Enron?) Instead of using taxpayer money to front these thieves, why not use it where it already had proven to work: community colleges?
Our public schools are next. Imagine using taxpayer money to enrich owners of charter schools who perform no better than public schools. Anyone here ready to pony up $10,000 to $30,000 a semester just to see your kid through Jr. and Sr. High? Trust me when I say they've been eyeing this for a long, long time.
All the best,
Nonoise
