Career College Central

Career College Central - May 2016

Issue link: http://www.epageflip.net/i/683337

Contents of this Issue

Navigation

Page 26 of 75

Subscribe at www.careercollegecentral.com 25 not just career education institutions). She writes, "is situation wields the power to quickly turn America from a country lauded for ingenuity and leadership into one of growing ignorance and lacking self-reliance." Strong words, and she goes on to support them. Hammer writes that through her own analysis, she has discovered patterns that can clearly be viewed as agendas that have less to do with educating Americans but more to do with carrying out a tragic injustice by reducing or illuminating free enterprise within higher education. She dives into the Obama administration's elimination of the private sector of federal student loans, the FFELP or FFEL Program. Here she notes that publicly available data shows the private sector still outperforms the direct loan program even with the mission returns on the loan portfolios these companies still manage. Hammer really hits her stride when dealing with the DOE's efforts to "eliminate for-profit education by covering up an underperforming nonprofit sector while grossly misreporting information about the for-profit proprietary sector." She offers a side-by-side comparison of student loans by school sector that clearly shows community colleges are the lowest-performing group in terms of graduation rates and are the most costly for students per graduation percent. e same data also shows proprietary colleges are the highest performing of all groups in terms of graduation rates and the least costly for students per graduation percent. e entire book drives home similar points repeatedly with support from analysis and data, some of which comes from the Department of Education itself. Hammer offers recommended actions and translations to bring added weight to the data and further explain what her interpretations mean. For any career college sector executive out there who has wondered if someone could ever strongly enough call out the Department of Education for misrepresenting data to cast the career college sector in a negative light, Hammer brings all that and more to the forefront here. ere are close to 300 pages of facts in statistics that support her argument and show without fault that the Department of Education has its sights locked in on career colleges. And frankly, the DOE has done more to our students and graduates than an injustice. EXCERPTS FROM THE BOOK: MORE INTEREST = MORE GOVERNMENT PROFITS In 2013, the actual profit on federal student loans was estimated at $41.3 billion! This is largely based on repayment plans to put students into situations where minimal or new principal is being paid — not really CDR manipulation, just manipulation. More interest is more profit to the government, and it goes into the federal general fund to pay the national debt, not into educating America. THE TRUTH ABOUT THE GE DATA There were two sets of data for the fiscal year 2011 GE informational rates. The "streamlined" data released to the general public included rates for 3,787 programs with no supporting data. The more comprehensive "final" data not released to the general public included 13,587 programs in the data details behind the GE rates. The "final" data contained details about the GE rates that allowed an audit and resulted in calculations that were not consistent with the streamlined rates released to the public, reporters and Wall Street. The discrepancies yielded results in favor of public institutions and were damaging to proprietary institutions. THE TRUTH ABOUT SECTOR PERFORMANCE BASED ON ICDR DATA The public sector now represents 51 percent of the nation's Borrowers in Default and 50 percent of the nation's Borrowers Entered repayment. Based on the iCDR data, the public sector now has 91,563 more Borrowers in Default than the proprietary sector represents — not the picture the DOE wants Americans to see when asking taxpayers to foot the bill for two free years of education at the public community colleges that represent 96 percent of the increase in public sector default when you compare fiscal year 2009 to fiscal year 2015. At the same time, the proprietary sector Borrowers in Default have increased minimally from 208,962 to 214,880, a mere increase of 3 percent. The proprietary sector now represents only 35 percent of the nation's defaults. For any career college sector executive out there who has wondered if someone could ever strongly enough call out the Department of Education for misrepresenting data to cast the career college sector in a negative light, Hammer brings all that and more to the forefront here.

Articles in this issue

Links on this page

Archives of this issue

view archives of Career College Central - Career College Central - May 2016