As I’m nearing the end of my college education, probably for the good now, I’m starting to organize and plan the next couple of years of my life. Among everything includes my student loans. I don’t regret taking out loans and do not believe that I have very much considered I’ll be getting my master’s degree. Certainly utilizing student loans provided me with the financial security to pursue interests of mine and have opportunities and experience that I’ve enjoyed and benefitted me greatly.
I don’t regret incurring student loans or going to public universities for my undergrad and grad school but this year I’ve come across several stories about for-profit schools. For-profit schools have far greater default rates than public and not-for-profit private universities. Despite this, for-profit schools are the largest issuers of student loans. What I mean by this is that for-profit schools like University of Phoenix, culinary schools, and other technical schools rely on funneling their students to student loans for financial aid.
Students at these for-profit schools pay thousands more in education and are misguided into obtaining student loans. When students graduate they often have difficulty in finding jobs or jobs that pay high enough to cover the basic minimum payment of their loans. For these schools it doesn’t matter whether or not the students are able to pay back the loan. These schools are paid upfront and have a bottom line to worry about. Many of them have investors which expect a return in their investments. Its very troublesome to know that schools like this continue to grow in popularity.
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I know exactly what you mean. I had a friend who attended Scottsdale Culinary, and he dropped about $80,000 for his degree. Though he was able to find a job, cooks are not paid that much. At most a cook is looking to make about $13 an hour out of school. I could not image how long it will take to pay back the loan.
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