For-profit schools are a big problem. A
huge percent of their students default or delinquent on their student loans and
they’re costing the taxpayer a ton of money and investors, they’re the ones
pocketing the profits. While this is an issue, it’s something that’s kind of an
obfuscation of the real problem with the student loan crisis. Not-for-profit
universities are vastly more damaging to the taxpayer into the cost that’s
inflicted upon people right now and millennials in particular in America
than for-profit universities. Why? Because when somebody defaults on a for-profit
university student loan, in most cases that loan is about ten thousand dollars.
We’re talking about people that went to a barber school or went to some sort of
trade school or they went and got a useless degree in something like, you
know, IT or communications from a for-profit school that wasn’t really
offering any actual education and that’s a problem. It’s absolutely damaging. It’s
wrong. But ten thousand dollars can be easily collected with the government’s
collection powers. The government can add sixteen percent collection fees and they
can seize your earned income tax credit, they can garnish your wages, and they can go
after your bank account. They can do anything. And so for ten thousand dollars
the government is gonna make a profit on a lot of these for-profit schools where
whose students are defaulting in their student loans because of their
collection powers. In contrast, somebody who borrows four hundred thousand
dollars for a veterinary school degree who’s making seventy thousand dollars a
year, the only rational pathway available to
that person is to go for student loan forgiveness. If you look at the cost in
today’s dollars of paying back four hundred thousand of student loans at a
seventy thousand dollar income, you’re going to have much much less in total
cost than the actual borrowed amount. So that means that the government is going
to be paying way more on these graduate school programs for the student loans
and they will on the for-profit universities yet the media gives all of
the attention to the for-profit universities that are ripping people off.
Not-for-profit universities provide a legitimate product. They’re giving you a
valuable education. They are giving you the credentials that you need to be
successful. That’s not what I’m saying here. I’m not questioning the
the education. I’m questioning cost. By providing such an expensive education,
universities are ripping off taxpayers, ripping off their students, and ripping
off anybody who actually contributes money to their school. Because while they
do valuable things, while they do research, while they do things that are
positive to the society that we have here in America, they’re vastly
overcharging for it because they can. The profits for this are going into the
pockets of university administrators, they’re going into expansion campaigns,
they’re going into other types of faculty positions, and it’s scandalous
and it’s messed up. So the next time you think about the problems about the
student loan crisis and who’s responsible for it, go look at some of
America’s most prestigious private universities and even public
universities because they’re the real culprits.