Student Subprime Open Thread
Sun, 11/08/2009 - 20:22 | 
standingup
Subprime problems aren't limited to homeowners. The Washington Monthly recently ran a good article, The Subprime Student Racket, on what sounds to be a big problem.
Theresa Sweet, a thirty-three-year-old California resident, took out about $100,000 in private loans between 2003 and 2006 to study photography at the Brooks Institute in Santa Barbara, which is owned by the Career Education Corporation. At the time, she says the Brooks recruiters—who have frequently been accused of misleading students—told her that graduates of their photography program typically made at least $60,000 straight out of school. In fact, since graduating three years ago she has been unable to find paid work in her field, and, while she has managed to get forbearances on her student loans, the interest has continued to stack up. She now owes more than $200,000.
Has anyone run across other reporting on the topic? I hope it receives more attention from other press soon.
I'm not certain of the particular program
Submitted by luaptifer on Sun, 11/08/2009 - 21:56.but I heard a piece within recent days, on the national segment of NPR (I believe).
I only heard part of the story but its focus was on the pressures and deceptions used by recruiters to some segment of (private / online ?) the university 'market'. Given the predominant advertizing, at least one name in the online space is the only name I recall from the segment.
I don't remember that the focus dealt with student debt, per se, but for what reasons do such concerns recruit other than to secure revenue flows from students and how do most students make it through college?
Student loans, of course. I'd say it's probably worth doing the google with relevant proper nouns ;-) !
I think I heard the same NPR
Submitted by Hello Dolly Llama on Mon, 11/09/2009 - 00:23.I think I heard the same NPR piece -- they were talking about the online university, University of Phoenix, which misled students about their financial obligations.
So that's it exactly, then, thanks!
Submitted by luaptifer on Mon, 11/09/2009 - 00:48.Do you recall the debt aspect being discussed? I was in and out while listening to that piece.