Subprime education

by David Safier

We now have a name for those for-profit colleges that scam people into taking out tens of thousands of dollars in loans to attend classes that will most likely do them no good. Subprime education. Perfect.

Finally, these ripoff colleges are getting the kind of media coverage they have long deserved. The article in today's Star is clear and damning.

A student was promised her Everest University credits would be accepted at University of Utah. She found out they weren't, $30,000 later.

Twenty-somethings with poor academic records and desperate adults take out guaranteed government loans to pay tuition — guaranteed to pay off the for-profit college, that is. They default on the loans at twice the rate of students going to state colleges and universities.

Oh, and here's something I didn't know. Say you default on your student loan and file for bankruptcy. The debt isn't erased: "collectors can seize money from a borrower's paycheck, tax refund and even Social Security benefits."

This isn't about ending for-profit colleges. They serve a purpose when they're run responsibly. It's about stronger oversight and regulations, to protect the students and drive scoundrels out of the business.