A recent study conducted by the Center for American Progress has revealed some shocking statistics regarding the largest graduate school beneficiaries within federal loan programs. It turns out many are not prestigious, accredited schools, but rather lower quality, for-profit universities. This is a cause of great concern for students who believe these lesser valued schools are accepting government funding, only to increase their own profits.
Of all the graduate student debt in our nation—totaling $6.6 billion, 20 universities account for almost one fifth of the debt. Furthermore, 10 of the 20 institutions are for-profit schools. Charging expensive tuitions while providing a poorly valued education, does not seem to stop these schools from offering loans to prospective students. The schools also exhibit very low standards for admission. The only requirement seems to be money, which the universities are more than happy to provide (often through loans from the federal government). As a result, the degrees student’s graduate with are barely worth the paper they are printed on.
The study shows that the largest borrower on the list is Walden University, with $756 million of borrowed funds disbursed to students last year. Owned by the for-profit education company Laureate Education, Walden University hardly has an academic reputation. Many of the schools are able to obtain such a large amount of funding by taking advantage of the law that governs student loans. The Higher Education Act allows graduate students to borrow far more than undergraduates, upwards of $50,000 per year. For-profit universities that mainly operate online, often encourage students to borrow larger amounts for graduate degrees instead of bachelor’s degrees.
The for-profit universities argue that they are offering education to those who are not served by mainstream universities. Still, many believe these schools provide “less than worthy” degrees to students, leaving them with enormous amounts of debt and little chance for employment in a competitive job market. The schools continue to draw students in with promises of a better future, when in reality, the government is offering subsidized loans for a mediocre education.
For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
