The federal government sees the need to improve the monitoring of for-profit schools after being accused of using deceptive tactics to lure students into taking on high debt for poor education. The rules include the ability to take action against schools engaging in deceptive advertising and marketing and eliminating federal aid to those programs with low paying jobs at graduation. Students enrolled in for profit colleges account for 26% of all student loans and 43% of loan defaulters. It is clear something needs to be done to control these schools before the problem gets worse. Banks, students, and the government are all unhappy. By using direct government and social regulation, these problems can be fixed. They must use a top-down approach because the goals are clearly defined and we will have an easier time assessing the effectiveness of these new regulations.
http://articles.latimes.com/2010/oct/29/nation/la-na-colleges-profit-20101029
Michelle Watkins
Subscribe to:
Post Comments (Atom)
Michelle,
ReplyDeleteThis article said "These new rules will help ensure that students are getting from schools what they pay for: solid preparation for a good job." This is definitely a type of protective regulation. Students already need loans from the government, no matter what the school. Private schools are incredibly expensive; if they aren't paying for a good education, then what are they paying for? I also think this takes a top-down approach. For some schools,though, it may take a series of steps to decide how to best handle this situation. Direct government and social regulation require immediate change from schools, or else sanctions will come into play. I agree this is the best way to handle this issue.
Elise Leppert