The students graduate and realize quickly they can't pay these loans. The schools and Sallie Mae quickly get the students signed up for cohort rate assistance companies like General Revenue Corp (owned by Sallie Mae) keep the defaulting students off the books/in positive until 2-3 years when the students fall off the schools books (and keeping them in good graces with Title IV funding - formerly Sallie Mae, now the Direct Loan program) protecting what happens with the funding long enough that the government doesn't notice to blame the school.

>>3333613
The student defaults and it moves to the guarantor (USA FUNDS owned by Sallie Mae) and collected by the collection companies (owned by Sallie Mae) who tacks on 25% and takes the guaranteed student loans via 15% of whatever money the students have/don't have with the governments hand/power. And where does the private loans go? Sallie Mae was writing it off/selling it off to collection companies. Meanwhile, all companies contributing to campaigns to keep laws in their favor and keep the cogs in place.

All of this with the students trapped, because the students CAN NOT declare bankruptcy and they're STUCK, like a mouse in a glue trap.
Does this sound unrealistic? Because if it is, it is what seems to be going on. This could be what I believe is the business model of most for-profit (if not colleges in general).
Please tell me I'm wrong. Please tell me this isn't how their business model is working. Because if it is, and they haven't been caught, What the fuck is wrong with our country? Please tell me this isn't the free market in progress.

what

loans or not, most who go to college are already middle-class

nothing wrong with for profit colleges. all colleges and universities are for profit anyway.

the problem is the subsidized loans. with competition for profit colleges will offer superior value and beat all traditional, elitist, institutionalized, colleges and universities, given time.

Get a degree that is worthwhile, not art, history, photo, etc., those are hobbies, few make careers out of them

Find out if your school is a for profit one and is accredited

If your school is advertised nationwide on TV, stop going to it

Do better when in HS or community college

If you don't like school, don't go to college. Find a trade instead

/thread

i'm currently in the trap.

The Senate held hearings on this over the summer but did nothing.

They think im going to pay them, its funny.

>>3333626
yes, this is exactly what happens. if you can't see the chains doesn't mean slavery doesn't exist anymore.

>>3333685

30,000 worth of school for a 10/hr job at staples or best buy.

Why is this legal?

>>3333670
CNBC is doing a big story tonight at 9.

The more and more I see these articles and these hearings and my own experience (I got fucked by AI)... the more this chain happening.

My plan-

Pursue Masters, perhaps higher in socially relevant field.
Accrue crippling mountain of debt.
Leave country for norther european career, perhaps in a university.
Never return.
Lol.

DeVry teaches it's students an important lesson

>>3333333

Yet another example of good intentions from the government hurting the people meant to be helped.

Nobody will learn from this. We will simply blame the free market once again and repeat this sad scenario some other place.

>Accrue $30,000 in student loans.
>820 credit score.
>Get a credit card with no limit.
>Pay all loans off on single card.
>Make a few payments.
>Hiding assets the whole time.
>Go bankrupt.
>Debt eliminated.
>Problems, educational establishment?

>>3333858

Another student here.

Would this actually work?

>>3333858
Defaulting on your loans just means that the financial institution will be reimbursed by the government through taxes. Congratulations on becoming part of the cancer.

>>3333981

>implying I care since I no longer owe anybody anything and basically got a free education.

Detractors will inevitably abhor.

That documentary is starting now in the West

>>3333770
Its missing a few steps that are in my theory.

It goes deeper than even that.

>>3333608

You conveniently leave out that government guarantees those loans.

>>3333858
This sounds so nice.

Higher education is free in my country. It costs practically nothing (no overpriced books and no fees) and the degree of the school I'm in is one of the best countrywide.

>>3334158

free education means everyone has a degree which means your degree is worthless

I hope you're all watching CNBC. This shit is my life.

>>3334200
>free education means everyone has a degree which means your degree is worthless

>This is what conservitards actually believe

>>3334223

>imply you are making more money with your better degree

>>3334200
Oh wow.

>>3334223

>implying if everyone had a degree employers wouldn't just find some other criteria to weed out applicants like maybe a higher degree

It's not just the for-profits who do this.

>>3334258

>implying that making higher education free means that everyone will get it

>>3334268

>implying I was implying that and not responding to the idea that if everyone had a degree they wouldn't be worthless

>>3334200

naw they probably have very strict entrance exams. but these countries never invent anything, their education is not dynamic, and probably lacks basic equipment to teach modern subjects. There is a reason why everything is invented in the usa, it's because we are innovative and dynamic and our educational systems change over time to meet the needs of our superior economy.

>>3334200
>I need a population pocket of undereducated people to make my education valuable

... seriously?

the people from europe who want to get anywhere come to the usa or britian to complete their education.

>>3333626
>>3333613
>>3333608

All worst case scenario's for losers that think they can do college but can't andf fail.

I took that risk and went to a for profit college. I have been living the middle class dream since. Its not a house, but damnit, I will be able to afford one after I pay back my loans. (after 7 years)

That, and I live in the #1 city to work and live in the USA. (cnn, search it up) So, it's easy to get a corporate engineering job.

despite what people try to tell you a 4 year degree is not essential. a trade school degree is worth more than 90% of 4 year college degrees at this point.

i was lucky enough to have rich parents so they paid my tuition to a big school. i got good grades and a ton of work experience in college. i got out of college and...shit a 4 year chemistry degree is only worth $28k/yr now IF you can find a job. i could not. my job in college was 4 years of paid research...on any application that instantly bars you from all shitjobs like fast food/wal-mart/target.

i'm now a CNA (like a 2 month community college course) making $12 an hour with full benefits. it's the same i would've made as a chemist with the same ceiling. /coolstory

>>3334200
free university education means a liberalization of the job market. the unused work force can train itself and relocate where it is needed the most, allowing the economy to employ its unused factors. charging people for the possibility of being allowed to offer certain services in the market is not a effective measure at all and it's pretty fucking stupid. if you hate free university then you hate the free market. i learned this at my econ 101 class in my free university lol

>mfw I compare my CC intro Chem course with the intro Chem course on MIT's OpenCourseWare and they cover almost the same material

After grants, $50k in loans. As a pharmacist, my first job is paying me $90k a year.

Problem, poorfags?

>>3333608
>free education until 24
>gov gives me money to go to college
>after 24 pay 600€/year which is nearly nothing


lol usa

>>3334412
>thinks their shitty liberal arts education means anything compared to most American universities which are globally ranked
>thinks its actually free
are you all this gullible?

It's not some hidden conspiracy that full profit colleges are bullshit in terms of how successful students from it are compared to how much is payed. Plenty of economic and financial investigation has been done and the only step left is the government getting involved and regulating it. We learned it in Labor Econ in university. They are just money grabbing shitholes that get you know where. At least University sort of pays off after they grab your money.

>>3334395
my sister graduates from pharmacy school in may. she is the last class that will ever make 100k+ out of school.

supply will soon be >>>>> demand and prices will permanently fall to ~50k a year starting. if you're lucky you'll never have to take a pay cut tho.

>>3334434
>implying i have a liberal arts degree
>implying you need to go to an ivy league university to make it big in austria/germany/the eu in general

>>3334492

>my sister graduates from pharmacy school in may. she is the last class that will ever make 100k+ out of school.

She'll just get laid off and they will higher the same quality pharmacist for 1/2 price

>>3334550

>hire

self Fixed

>>3334258

countries that offer free university generally also have high tax and low wage disparity, which means people with higer degree get payed the same as people with low degree.

i have to ask, why dont these indebted students simply hightale it out of the US with there "ill-goten" degree and fuck the lenders?

mfw the military gave me 4 years of free college for being in the military for 1.5 years.

>>3334628
>>3334628
adn you gambled on being shot or blown up by an ied

>>3334625

I've honestly thought about it - however student debt is impossible to get rid of, and if it's private as most is they will go after your family for it.

Never left South Carolina.

>go to a CC for 2 years
>transfer to a top 25 globally ranked school
>only need to worry about 2 years of tuition there
fuck ya minimized the damage a bit.

>>3334666
We're talking about for-profit universities right now.

>>3334492
In the city of the university. Nationally, there is a major shortage of pharmacists. If anything, the Baby Boomers are gonna create a HUGE source of demand, soon.

this is why you guys get a degree that isnt a pos

>>3334072
Actually most of this was about the FEDERAL/backed loans.

>>3334673
Perhaps if they didn't make the schools retardedly exclusive while changing the requirements to make sure there're also only a small number of qualified schools, supply wouldn't be an issue. Of course that was no mistake, it's how you keep your labor supply short to keep wages up.

It's health care, competition is the last thing they want.

>>3334395
>Implying one keeps the same job for their entire life and lay offs don't happen.

Enjoy your false security.

>>3334672
oh, im lucky to go to a school where a degree there shit mean at least a little bit more. I also have the luxury of being able to apply for a job at a local company that has ties to it so they understand grads from there usually do better.

>>3334766
should mean***

>>3333657

lolno

>>3333657

You lack any evidence supporting that. For profit colleges charge outrageous tuition, provide garbage education and useless degrees.

colleges and universities in the usa are elitist and institutionalized. they are not functioning as they should; as businesses.

they still function like private clubs for the rich elite of a gilded age.

Colleges should accept anyone who can pay tuition. They should also grow their enrollment to meet demand. If tens of thousands apply, maybe that is a signal to grow your education business. But enrollment growth is at a snails pace in these elite colleges. if they let in thousands more, all paying tuition, they tuition could be cut drastically.

And why should they grow? students stupidly borrow 'cheap' easy debt to go to these schools, with fiat money, ever inflating the cost of school. The schools have tens of billions in their school funds, spending lavishly on themselves.

But what should happen is the supply should increase, and with competition, price should go down.

>Pretty soon, all you are going to need to get into college is a fucking pencil.

>lazy fuck goes to college
>takes history courses
>60% average
>stops at bachelor
>pisses and moans that he cant find work
>doesnt realize there are plenty of opportunities for people with college degrees no matter what they are
>meanwhile, I graduate with a PHD with Roman studies and move to italy

>>3334815

Some do. I left a state school for a private school 2 years in to a comp sci degree, because what I'd seen was the state school teaching shit that was at least 10 years outdated, while the private was teaching things used in the field. Since I was working in my field already I moved, and never had a problem getting great jobs.

>>3334628
>>mfw the government changes it so you will have to pay portion

http://www.bloomberg.com/news/2010-12-09/for-profit-colleges-scam-military-for-521-million-senate-co
mmittee-says.html

They're trying to make these schools 90% fed 10% private.

I wouldn't doubt if they change the amount covered.

For-profit education is perhaps the stupidest idea ever. People need education to actually earn decent money in the first place.

>>3334855
>PHD in roman studies
>completely useless degree that is more like a hobby.

>>3334837

>Colleges should accept anyone who can pay tuition.

So accept people who can pay instead of accept people based on merit? That will vastly inflate demand, jack up prices and fill the schools with under-qualified students that will drop out with mountains of debt.

>>3334887

Uh, not if you want to teach.

[spoiler] I do. [/spoiler]

>>3334837

Problem there is it devalues the degree - if everyone has a degree, there's little benefit to getting one. One reason our generation is fucked, we know graduate with tons of debt, but face equal competition with a degree as our parents did with a HS diploma.

they really need to monitor people's debts. My buddy has 30k in debt and he's only halfway through his second year. Spends it all on booze and drugs.

Just remember: Albert Lord, CEO of Sallie Mae, is a baby boomer.

>>3334837

>if they let in thousands more, all paying tuition, they tuition could be cut drastically.

This is precisely the opposite of what happens. What you want to do is drop merit based evaluation of getting into college and that will only lead to millions of idiots crowding colleges, increasing demand with little economic benefit.

>>3334936
FUCKING BOOMERS

>>3334936
I hope to god he chokes on the steak he's eating on my tab while I'm eating fucking ramen.

The day of Al Lord's funeral, I'm going to declare it a vacation day and show up partying.

>>3334887
>completely useless
Wrong. Having a 4 year degree means the person stuck it out for 4 years out of personal drive (they are not obligated to, and even have to pay for it). That alone means something to an employer.

I made a mistake of pursuing an animation degree.

My biggest mistake wasn't that though. It was going to 2 for-profit colleges.

We don't question bridges when we cross them, we assume that the builders were paid to do their job efficiently. The same as going to college, we assume they are legit and well accredited and not there to rip us off.

Shame on us.

>>3334998

It takes more than 4 years of education to get a PHD on top of that.

College students have got to be some of the stupidest people on the planet. They honestly believe that college is the gateway to a good job, so they get jewed on tuition, textbooks, living expenses, and they go -30k or -100k in the hole just for that imaginary job. And then they act all surprised when they find out there's no magical job waiting for them after college and it was a big lie

LOL college students

Compare the amount of money that for-profits direct towards advertising to traditional colleges

1. College is not for everyone.

2. Not everyone is intelligent enough to complete a rigorous academic program.

3. Education is not the answer for stupid people.

4. In order to ensure "everyone" gets a college education, like Obama and the liberals demand, we will have to water down high education to the point that it is a joke.

5. Most state and community college programs are already watered down to the point that they are little more than a waste of money.

6. If you could only get into a state university, that isn't in the top 10 ranked state schools, you are probably not intelligent enough for college. You are putting yourself in debt for nothing because when you complete your degree no one will give a fuck.

7. If you're fucking stupid there is no amount of education that can ever change that fact. You may have $100,000 worth of college and some pieces of paper, but employers want intelligent people that can produce - not lazy fucks that wasted $100,000 (this indicates that you're probably retarded in and of itself) suffering from an acute bout of unwarranted self importance because they are carrying a couple of degrees with them.

>>3335041

Colleges certainly do Jew their students out of a lot of money but that is not to say that those with degrees fair far better in the work force than nondegree holders. Unless you went to a for-profit.

>>3335041
Our parents did it.

This is why i want the economy to collapse so everyone wiith good degrees will lose thier jobs so it al balances out

>>3335041

Programmer here - we get a better return on our degree than most, and by the numbers we're still below a longshoreman in average wage over lifetime.

Unless you're going to be a professor (very rare), are getting an engineering or business degree, you're probably wasting your time and money. Get a library card and a warehouse job and start saving.

>>3335069
The nuclear american dream white picket fence family is a dead paradigm bro.
Time to move on and leave that baggage behind.

>>3335069

The poster above you here. Our parents weren't nearly as fucked over by pointless fees as we are. I got to a top 30 ranked school by lolusworld reports. They charge an 80 dollar handling charge for paying tuition with a debit card.

>>3335053

Meh, I wound up at state because I was bored shitless in high school. I aced my SATs, but had a shitty GPA. Plenty of education just measures how well you follow the system, not how intelligent you are.

>>3335053

you act like employers are actually bright people but they really arent in reality

>>3335099

Traditional higher education, before the peasantry were allowed in, could only be completed by people of above average intellects that were academically motivated. It is the influx if peasant students from the public schools that has forced academia to lower their standards severely at most institutions.

That is why a degree from any college that isn't in the top 50 nation wide is utterly worthless dog shit and that's why none of you have jobs.

>>3335110

I bet they are smart enough to capitalize the first word in a sentence, use an apostrophe in aren't, and end their sentences with a period.

>>3334941
>This is precisely the opposite of what happens. What you want to do is drop merit based evaluation of getting into college and that will only lead to millions of idiots crowding colleges, increasing demand with little economic benefit.

with your logic, there should only be one movie theater, and every ticket should be a million dollars.

>>3335113

I finished, after going back, and make six figures. Most people going to college today shouldn't be, and I've got no problem with a meritocracy - however with the legacy students at private institutions claiming they represent the best is pretty laughable.

>>3335085

You ignore honors that you get with your degree. If you do well enough almost no degree is worthless.

>>3335137

Ummm what exact job do you plan on getting, outside academia, with an English degree with honors? There's little demand for literary theory.

>>3335125

Except movie theaters don't allow their patrons in based on merit nor should they. Education is entirely different.

Holy shit America, you can't even create a student loan program properly. How do you manage to fuck that up?

In Canada, it's simple: You don't pay interest until six months after your graduation and you can't get charged over a certain number (in Canada's case, 7200)

Yet you charge your own students 20% interest and have to make daily payments WHILE they are at school? Holy shit.

A traditional liberal arts education worked back in the days before WW2 because only the elite went to college. They could get a liberal arts degree as an undergrad and then either go work for one of their rich relatives or go to graduate school to become a lawyer or doctor (back when being a lawyer meant something).

That's still true today. The elite can study whatever they want because, hey, they're already rich. If they need money they have connections to hire them at a hugely inflated salary.

For the peasant classes college is essentially job training. Peasants should not be going to college to study psychology, sociology, or any other major that does not result in a high paying job with high frequency. The data is available for everyone to review. Everyone knows what majors result in roughly what salaries. If you still chose to study psychology and went absurdly deep into debt doing it, don't come crying to me about it.

>>3335144

For such a degree you need a portfolio proving you're better than the rest which is the same thing honors are there for.

>>3333668
>The mentality that allows this to happen
>mfw

>>3335167

It's called a meritocracy. Only the strong survive. Dog eat dog.

Welcome to America, pussy.

>>3335177

He wasn't describing meritocracy at all....

>not sure if joke, troll or just stupid.

>>3335169
lolno

>>3335158
.Except movie theaters don't allow their patrons in based on merit nor should they. Education is entirely different.

no it's not. if someone wants to go to a great school, and flunk out, that's fine, as long as they pay. in fact the losers paying and dropping out is good for the school, it saves them the money they'd have to use to teach them! so in fact in my system, keeping standards high is good for business.

Just watched that documentary

>$1,600 for 2 weeks of class at University of Phoenix

Don't know whether to laugh or feel bad

Also,
>paying for 2 years of GE at a university

>>3335196

> if someone wants to go to a great school, and flunk out, that's fine, as long as they pay.

seriously?

1. They have no ability to pay if they flunk out.
2. Increasing the demand to go to schools by eliminating merit based evaluation will only ensure that there are more people incapable of passing.

You're advocating a debt trap.

>>3335196

>if someone wants to go to a great school, and flunk out, that's fine, as long as they pay.

Seriously the dumbest thing I've read all day.

>>3335226

protip: eventually the lenders get tired of coming after you for the money, though your credit score is demolished.

then again, if you can't handle a super-low interest student loan, maybe you don't need a credit score.

>>3335246

>eventually the lenders get tired of coming after you for the money.

They garnish your wages. Or if they stopped doing such things then demand for college would skyrocket even more, filling campuses with even more idiots unable to pay or pass.

>>3335226

>You're advocating a debt trap.

you're seeing school as it is today, not what it could be. if everyone was accepted, as long as they paid up front, tuition costs would be very low.
and if schools grew like businesses, for example, if harvard built campuses in every state, there'd be greater supply so lower cost.

I also think that innovation would lower cost, students should, for example, watch video recordings of lectures online, instead of actually going to a lecture hall, which is more expensive...

My brother went thru college first.

He did 4 year college thing.

Gave me his advice on what to do.

>Community College
>Transfer to finish my Bach in Social Work.

>Work there for a few years.

>Go back for Master in Social Work which is 1 year.

>Job will pay for Masters if I work for at least 1 more year with them.

>Feelsmiddleclassman.jpg.


I woudent mind being middle class, coming from a immigrant family it's fine.

But bro makes around 250k a year;

>>3335197

>my face when some nigger tells me they have a bachelor's degree from University of Phoenix or Strayer or ITT or any of those profit driven "schools" with 8 week semesters

>>3335192

That chart seems highly suspect. Probably from right after the .com bubble burst. And what the fuck would an undergrad that studies law do? He can't go take the bar exam in almost any state. Furthermore, in big cities unemployment among ITfags is near 0. Finally, the CSfags that ARE unemployed are the hard core autists that move back into the basement to play minecraft.

>>3335246

>then again, if you can't handle a super-low interest loan, maybe you don't need a credit score.

>mfw he doesn't understand the huge economic destroying forces of debt bubbles.

>>3335236
>But bro makes around 250k a year;

doing what?

>>3335284

Not if your wages are insignificant. If your wages ARE significant, you can get income-based repayment. Only 15% per month of the difference between your income and the federal poverty line.

Now, if you can't do that...I mean, please.

>>3335319

you can't get more debt without a credit score. it's there to save you from yourself.

College is jew bullshit.

>Finland
>the best educational system in the world by every measure
>twice the amount of the second highest country's number of PhDs per capita
>no college whatsoever
>straight from high school to university
>completely free

Liberal Art major here making 500k a year, you guys are just dumb

>>3335291

>if everyone was accepted, as long as they paid up front, tuition costs would be very low.

No they wouldn't unless per student spending fell dramatically with it and they eliminated research.

>>3335330

It doesn't matter if the initial debt was large enough which is why the subprime mortgage fiasco has been so bad.

>>3335322
Project Manager or some bullshit for the system of the California Hospital.
I think his degree is Computer Systems or something like that

>>3335341

>imply you are not a member of the elite

>>3335340

false, Finland is far, far down the list of leading universities.

http://www.timeshighereducation.co.uk/world-university-rankings/2010-2011/top-200.html

#102

America is rapin' Finland's Scandi lil' ass as well as all of those other leftfags

fundi, shobtan as captcha

also, protip, our best unis are PRIVATE

>>3335324

People defaulting on their debt only causes the institution to raise their price to make up for it. The more this happens the more prices would go up.

Allowing unqualified students to enroll then drop out would only increase tuition for everyone.

I graduated with 10k debt, how fucked am i?