Subprime colleges--outstanding student loans 7% of GDP

[eridani]

http://www.doctorhousingbubble.com/subprime-colleges-student-loan-debt-now-equivalent-to-7-percent-of-us-gdp-for-profits-claim-harvard/

Think about the above. Many of the for-profit colleges derive 90 to 100 percent of their income because of federal student loans. Students are lured in with late night commercials or aggressive sales teams that simply do not care about the actual education a student will receive. It is all about churning sales and suckering people into a false mantra. “Every person should have a college degree” which rings eerily similar to “every person should own a home.” At what cost? The only reason this is happening is because of Wall Street and government backed loans. Thanks to this new model, the for-profits are operating in the new world of subprime colleges. Yet there is no walking away from student loan debt which puts an albatross on an entire generation of college students. Will these people even be able to purchase a home in the future? Will their degree actually increase their earnings potential? Here is a case of a student out in Los Angeles:

[CanonRay]

1. I used to work for the Dept. of Ed/OIG

in the late 80's and we had an agressive push to get rid of these phony schools. Excellent concept teaming auditors and criminal investigators, and we shut down some big ones, including one listed on the NYSE. But alas, the government stopped pusing as this "who needs regulations" attitude took over. It's the kids that really get screwed.

[JDPriestly]

2. Student loans are the perfect way to trap the unwary into

lifelong debt. Check out the current Bankruptcy Code. I believe that it was amended during the Bush years to make it harder to discharge most education loans.

Careful, careful.