Colleges Getting Rich, Students Drowning in Debt
A ticking time bomb of American debt. Over $830 billion is owed by college students in the US with $3,000 more added on every second. The most traditional financial baggage for Americans was credit card debt. For the first time, debt belonging to college students has overtaken that number one spot. This appears to be the generation of PhD plumbers (see video below).
Economist Max Wolff told RT News, “Students graduating in 2008, 2009 and 2010 are facing the worst job markets in a generation at least. And so you have people with more debt than we have ever seen before, who are having a harder time finding any job, let alone a job that pays them enough to somehow pay off all this debt.”
RT contribuotr Danny Schechter adds, “Universities are actually cutting deals with the student loan companies and making money on the side. There has been a lawsuit in New York – a million dollar fine – against Columbia University for steering people to expensive loans. The danger here is that instead of capitalism we end up with serfdom, because these students are indebted for life”.
Bridgepoint Education Inc. is a publicly traded venture started by a group of former executives from the University of Phoenix, a name now synonymous with for-profit higher education and the controversial marketing practices that have brought the industry crosswise with federal regulators.
Six years ago, Bridgepoint purchased what was then called Franciscan University of the Prairies, a near-bankrupt, 300-student college that for decades had been run by a local order of Franciscan nuns. The school delivered a crucial commodity: legal accreditation. That enabled Ashford’s students to tap federal financial aid dollars, the source of nearly 85 percent of the university’s revenues — more than $600 million in the last academic year. Ashford now counts nearly 76,000 students, 99 percent of whom take classes online.
Two years ago, Bridgepoint engineered an initial public stock offering that brought in $142 million.
(Source: RTNews.com and HuffingtonPost.com)