Monday, June 20, 2011
For Profit colleges may face tighter rules
Redlands Daily Facts 06/20/2011, Page A06
For-profit colleges may face tighter rules
tighterfederaloversight may see For-profitcolleges
By ANDREW EDWARDS
Staff Writer
The federal government is moving toward tougher regulations of for-profit colleges, an industry that has greatly expanded its presence within the Inland Empire during the past few years.
The Department of Education’s new, and still controversial, “gainful employment” rule announced this month requires graduates of for-profit career colleges to meet certain loan payment standards to gain access to federal financial aid.
The government’s thresholds are aimed at ensuring for-profit schools and their students are channeling federal aid toward lucrative careers.
But the rule could cause profits to decline at for-profit schools, which count on federal financial aid dollars for up to 90 percent of their revenues.
Career colleges and critics also decry the rule as a regulation that will limit students’ access to job training.
However the rule’s consequences play out over time, the Education Department’s action is sure to affect an industry that has grown quickly even in the economic downturn.
In the Inland Empire, the expansion of for-profit schools has breathed some life into an otherwise struggling office scene.
“Within the last 10 months over 100,000 square feet have been leased to schools in this market (Ontario and Rancho Cucamonga),” said Carol D. Plowman, a senior vice president of commercial real estate firm Lee & Associates’ office in Ontario.
A number of career college representatives said they were not yet prepared to comment on how the U.S. Department of Education’s “gainful employment” rule may affect their business practices.
“The best I can tell you is we’re still reviewing the information and how it may affect our students,” University of Phoenix spokesman Rick Castellano said Thursday.
In a statement issued June 8, Penny Lee, managing director of the pro-career college group Coalition for Educational Success, defended for-profit schools’ roles among institutions of higher education.
“While there is no single right answer on how to train workers for tomorrow’s jobs, career colleges offer access and choice to millions of students who otherwise would not have a pathway to a higher education or a career,” Lee stated.
From a job recruiter’s perspective, a traditional university degree is generally more valuable than one from a career college, although courses taken at career colleges can have value, said Sarah Cullins, president of Rancho Cucamonga-based Finesse Staffing.
“I think some of the good things about these schools is that if you’re already employed, they can help you in the career where you’re at,” Cullins said.
For-profit schools are where 12 percent of the nation’s college students take classes, according to the Education Department.
Students at for-profit institutions have taken out 26 percent of the nation’s student loans, but owe 46 percent of the student loan dollars in default.
The “gainful employment” rule would tie for-profit students’ loan payments and balances to career colleges’ abilities to receive federal aid.
The rule requires the schools to meet one of three standards: at least 35 percent of former students are repaying the loans, the estimated annual loan payment of a “typical graduate” does not exceed 30 percent of his or her discretionary income, or the estimated annual loan payment of a typical graduate does not exceed 12 percent of one’s total earnings.
andrew.edwards@inlandnewspapers.com, 909-483-8550
Copyright © 2011 Redlands Daily Facts 06/20/2011
Thursday, June 16, 2011
This Senior Nailed It
Alan Simpson, Senator from Wyoming, Co-Chair of Obama's deficit
commission, calls senior citizens the Greediest Generation as he
compared "Social Security" to a Milk Cow with 310 million teats.
August, 2010.
Here's a response in a letter from an unknown fellow in Montana...
I think he is a little ticked off! He also tells it like it is !
----------------------------------------------------
"Hey Alan, let's get a few things straight..
1. As a career politician, you have been on the public dole for FIFTY
YEARS.
2. I have been paying Social Security taxes for 48 YEARS (since I was 15
years old. I am now 63).
3 My Social Security payments, and those of millions of other
Americans, were safely tucked away in an interest bearing account for
decades until you political pukes decided to raid the account and give
OUR money to a bunch of zero ambition losers in return for votes, thus
bankrupting the system and turning Social Security into a Ponzi scheme
that would have made Bernie Madoff proud.
4. Recently, just like Lucy & Charlie Brown, you and your ilk pulled the
proverbial football away from millions of American seniors nearing
retirement and moved the goalposts for full retirement from age 65 to
age 67. NOW, you and your shill commission is proposing to move the
goalposts YET AGAIN.
5 I, and millions of other Americans, have been paying into Medicare
from Day One, and now you morons propose to change the rules of the
game. Why? Because you idiots mismanaged other parts of the economy
to such an extent that you need to steal money from Medicare to pay
the bills.
6. I, and millions of other Americans, have been paying income taxes
our entire lives, and now you propose to increase our taxes yet again. Why?
Because you incompetent bastards spent our money so profligately that
you just kept on spending even after you ran out of money. Now, you come
to the American taxpayers and say you need more to pay off YOUR debt.
To add insult to injury, you label us "greedy" for calling "bullshit" on
your incompetence. Well, Captain Bullshit, I have a few questions for
YOU.
1. How much money have you earned from the American taxpayers during
your pathetic 50-year political career?
2. At what age did you retire from your pathetic political career, and
how much are you receiving in annual retirement benefits from the
American taxpayers?
3. How much do you pay for YOUR government provided health insurance?
4. What cuts in YOUR retirement and healthcare benefits are you
proposing in your disgusting deficit reduction proposal, or, as usual,
have you exempted yourself and your political cronies?
It is you, Captain Bullshit, and your political co-conspirators called
Congress who are the "greedy" ones. It is you and your fellow
nutcases who have bankrupted America and stolen the American dream
from millions of loyal, patriotic taxpayers. And for what? Votes.
That's right, sir. You and yours have bankrupted America for the sole
purpose of advancing your pathetic political careers. You know it, we
know it, and you know that we know it.
===================================================
Be aware that some of these statements may not be 100% true. Refer to http://www.snopes.com/politics/soapbox/simpson.asp for more clarity.
Thank you.
commission, calls senior citizens the Greediest Generation as he
compared "Social Security" to a Milk Cow with 310 million teats.
August, 2010.
Here's a response in a letter from an unknown fellow in Montana...
I think he is a little ticked off! He also tells it like it is !
----------------------------------------------------
"Hey Alan, let's get a few things straight..
1. As a career politician, you have been on the public dole for FIFTY
YEARS.
2. I have been paying Social Security taxes for 48 YEARS (since I was 15
years old. I am now 63).
3 My Social Security payments, and those of millions of other
Americans, were safely tucked away in an interest bearing account for
decades until you political pukes decided to raid the account and give
OUR money to a bunch of zero ambition losers in return for votes, thus
bankrupting the system and turning Social Security into a Ponzi scheme
that would have made Bernie Madoff proud.
4. Recently, just like Lucy & Charlie Brown, you and your ilk pulled the
proverbial football away from millions of American seniors nearing
retirement and moved the goalposts for full retirement from age 65 to
age 67. NOW, you and your shill commission is proposing to move the
goalposts YET AGAIN.
5 I, and millions of other Americans, have been paying into Medicare
from Day One, and now you morons propose to change the rules of the
game. Why? Because you idiots mismanaged other parts of the economy
to such an extent that you need to steal money from Medicare to pay
the bills.
6. I, and millions of other Americans, have been paying income taxes
our entire lives, and now you propose to increase our taxes yet again. Why?
Because you incompetent bastards spent our money so profligately that
you just kept on spending even after you ran out of money. Now, you come
to the American taxpayers and say you need more to pay off YOUR debt.
To add insult to injury, you label us "greedy" for calling "bullshit" on
your incompetence. Well, Captain Bullshit, I have a few questions for
YOU.
1. How much money have you earned from the American taxpayers during
your pathetic 50-year political career?
2. At what age did you retire from your pathetic political career, and
how much are you receiving in annual retirement benefits from the
American taxpayers?
3. How much do you pay for YOUR government provided health insurance?
4. What cuts in YOUR retirement and healthcare benefits are you
proposing in your disgusting deficit reduction proposal, or, as usual,
have you exempted yourself and your political cronies?
It is you, Captain Bullshit, and your political co-conspirators called
Congress who are the "greedy" ones. It is you and your fellow
nutcases who have bankrupted America and stolen the American dream
from millions of loyal, patriotic taxpayers. And for what? Votes.
That's right, sir. You and yours have bankrupted America for the sole
purpose of advancing your pathetic political careers. You know it, we
know it, and you know that we know it.
===================================================
Be aware that some of these statements may not be 100% true. Refer to http://www.snopes.com/politics/soapbox/simpson.asp for more clarity.
Thank you.
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