On the recordJune 9, 2015
we have an industry in America called for- profit colleges and universities. It is a unique part of America's private sector--and I use the phrase ``private sector'' with some caution. These are profitable entities which portray themselves as colleges and universities. We know their names: the University of Phoenix, DeVry University, Kaplan University, and--until very recently--Corinthian, one of the largest for-profit schools. What do they do? They entice young people to sign up at their for-profit colleges and universities and promise them they are going to give them training or education to find a job. Now, it turns out that as alluring as that is, it doesn't tell the whole story. The real story about the for-profit college industry can be told with three numbers: Ten. Ten percent of all high school graduates go to these for-profit colleges and universities. Twenty. Twenty percent of all the Federal aid to education goes to these for-profit colleges and universities. About $35 billion a year flows into these schools. If it were a separate Federal agency, it would be the ninth largest Federal agency in Washington, DC--$35 billion. But the key number we should remember is 44. Forty-four percent of all the student loan defaults in America are students at for-profit colleges and universities. How can that be--10 percent of the students and 44 percent of the loan defaults.…
