Blog

05/2014

Overcompensated and Underperforming

Originally posted on The Equity Line 

What’s more disturbing — that nine public college executives earned more than $1 million last year or that there appears to be little connection between president pay and college performance in serving students?

Of those nine executives, two lead institutions where the six-year graduation rate is far below the national average of 59 percent.

At the University of Houston, where President Renu Khator made $1.2 million last year, only 46.2 percent of students graduate in six years. While the University of Houston’s graduation rate ticked up by only one-tenth of 1 percentage point between 2011 and 2012, Khator’s total compensation increased by 75.3 percent.

Here’s How to Strengthen the Gainful Employment Rule

 

Blog was originally posted on The Equity Line 

Students traveled to Capitol Hill last week to tell Congress the hardships they have faced because the career education programs in which they were enrolled left them with nothing more than high debt and little, if any, real career preparation. Unfortunately, we know far too well that their stories aren’t unique. Students all across this country enrolled in predatory career education programs have similar experiences.

New Bill To Protect Students From “Auto-Defaults” on Private Loans

If you have ever lost a parent, grandparent or sibling, you’ll know that on top of the pain of loss and grief, there are a thousand details that need to be addressed. But one of those details shouldn’t be your student loans.

The last thing that a borrower needs to have on their mind when someone close to them has passed away is how it will affect their student loans. Sadly though, many private student loan lenders do just that, adding headache on top of heartache.

In a report released last month, the Consumer Financial Protection Bureau revealed that many private student loan contracts have clauses that automatically accelerate loans into default upon the death of the cosigner or if the consigner files for bankruptcy. This is the case even if the borrower has been making on-time payments. In some cases, lenders have gone as far as to ask for the full, early repayment of the loan. Often times cosigners are parents, grandparents, or someone else who is close to the borrower. As of 2011, about 90 percent of private student loans had cosigners. Continue reading...

Predatory Programs Need to Shape Up or Ship Out

There are less than two weeks left for the public to weigh in on the U.S. Department of Education’s proposed “gainful employment” regulation. The creation of this rule was an important step toward ensuring that career education programs, many of which are at for-profit colleges, are held accountable for preparing students for work without saddling them with unmanageable student loan debt.

Still, the department needs to do more to make sure that students are adequately protected. According to a statistic reported by Young Invincibles, only 1 in 10 students go to a for-profit college, but yet they account for 46 percent of all federal student loan defaults. Read more...

TODAY, don’t miss a press conference with Young Invincibles, joined by Sens. Tom Harkin, Dick Durbin, Chris Murphy, and Brian Schatz, who will call on the U.S. Department of Education to release stronger protections for students against predatory career education programs. Join them at 10:30 a.m. today in room S-115 at the U.S. Capitol.  

Take Action: Protect Students Against Predatory Programs

The U.S. Department of Education recently released its draft regulation that will take federal aid dollars away from career education programs that rip students off — many of these are for-profit colleges. While this is good news, the department has not gone far enough to protect students who frequently leave these programs with a meaningless degree (or no degree at all) and huge sums of debt. Students desperately need a strong rule to ensure that the schools they are going to meet minimal standards of quality and cost. Taxpayers also need a strong rule to make sure that they are seeing value for the billions of federal dollars that these schools collect from student financial aid. Click here to send a letter to the department now.