Wednesday, August 1, 2012

For-profit colleges are scamming Americans students (VIDEO)

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According to an investigation led by Democratic Congressman Elijah Cummings - for-profit colleges are paying executives massive salaries - not based on student achievement - but based solely on profitability. Looking at 13 different for-profit schools - the investigation found, "the single most significant measure for determining executive compensation at these schools is corporate profitability...rather than student achievement." For-profit colleges rely heavily on government funding, with many schools receiving as much as 90% of their revenue from federal student loan assistance programs. Yet, they're not producing good results. A quarter of all students who attend for-profit schools default after three years, while the default rate at public institutions is a mere 10%. Yet the for-profit school executives still get fat paychecks - like Strayer CEO Robert Silberman who made $41 million in 2009 alone. Educating the future American workforce used to be a part of the commons, because the economic security of the nation depends on well-educated workers. But now, the money-changers are in control - leaving students in debt, unprepared, and jobless.






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