Barbarians in the Ivory Tower

America's for-profit colleges offer education only a con man (or a congressman) could love.

Congress' shrillest voices on waste refuse to even look at the industry. Despite sitting on the Senate committee examining for-profit fraud, Rand Paul (R-Kentucky) has expressed no curiosity about this money pit. Nor have fellow committee members Lamar Alexander (R-Tennessee) or deficit hawk John McCain (R-Arizona). Not one responded to repeated interview requests for this story.

President Obama has stepped into the breach, though with customary timidity. In July, the Department of Education made it once again it unequivocally illegal to base salespeople's pay on enrollment. But other reforms were so watered down they were meaningless. Taxpayers should probably be thankful Obama did anything at all. At hearings last year, Senator Tom Harkin (D-Iowa) called it the most intense lobbying campaign he'd seen in his 32 years in Washington.

To truly appreciate how weak the final regulations were, consider this: The day they were revealed, for-profit stocks soared. The stock prices of EDMC and ITT Tech in particular increased by 20 percent. In one day.

Iraq war veteran Chris Pantzke ran up $26,000 in debt and burned through an additional $65,000 of his G.I. Bill benefits with almost nothing to show for it at the Art Institute of Pittsburgh.
courtesy Chris Pantzke
Iraq war veteran Chris Pantzke ran up $26,000 in debt and burned through an additional $65,000 of his G.I. Bill benefits with almost nothing to show for it at the Art Institute of Pittsburgh.
Barmak Nassirian, former official with the American Association of Collegiate Registrars and Admissions Officers: “Over-advertise, oversell, overcharge and under deliver. They found a system where the pitch goes to one guy and the bill to someone else.”
courtesy Barmak Nassirian
Barmak Nassirian, former official with the American Association of Collegiate Registrars and Admissions Officers: “Over-advertise, oversell, overcharge and under deliver. They found a system where the pitch goes to one guy and the bill to someone else.”

The government ignores the problem at the country's peril. Total student loan debt, now over $1 trillion, has surpassed credit card debt. These burdens will limit students' ability to contribute to our consumer economy for years to come. Worse, unlike an underwater mortgage, Congress has made it illegal for people to walk away from student loans they can't pay. The debt will follow them the rest of their life.

"This is basically a parasitic industry that is preying upon not just some of the most vulnerable members of our society, but the best of these most vulnerable members, people who listen to the rhetoric we feed them and who are actually attempting to better themselves," says Nassirian. "This is an industry that takes people's hopes and dreams and cashes them out."

And they won't stop until they've emptied the till.

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14 comments
calhouncounty
calhouncounty

Bobby is a National Collegiate Scholar who uses baby-talk: "I'm like" and "she's like" when he speaks? How is Eastern Michigan any better than Ashford?

jesskalinowsky
jesskalinowsky

Could be we do not have the complete story, maybe they were sued?  I certainly hope so, as it is disgusting that people want to take advantage of a minor child like that!

counsel
counsel

The "Whatever" Press

 

Seriously?  You couldn't find a lead story that even mentions Texas, much less Houston?  At least it wasn't another rapper piece.

jesskalinowsky
jesskalinowsky

This is SO infuriating!!!! Someone should sue Ashford socks off, if they are still in business. A minor cannot sign a contract like that, and if there was forgery involved send the whole bunch to prison.  The University of Phoenix does the exact same thing, and have gotten away with it for years.  They tell you your credits are transferable, they are NOT transferable. They tell you an Associate Degree is transferable , it is NOT.  They advertise people getting advanced degrees, most employers scoff at a degree from University of Phoenix.  It is a serious FOR BIG PROFIT SCHOOL will to twist words and put a spin on them that makes them sound legit, THE ARE NOT legit!  Their classes are a joke!  Their teachers are a joke.  I took some of their classes, but thankfully my employer was footing the bill, and I did not lose a penny. The classes/courses I took were a total waste of time! NOT one was transferrable.. The University of Phoenix LIES to the potential student. They LIE to Vets!  It is a SCAM OF A UNIVERSITY!    

Hanabi-chan
Hanabi-chan topcommenter

Hey counsel? Just because the story does not mention Texas in a particular instance does not mean that the issue has no bearing on our state. The problem of for-profit "colleges" is nationwide.  We have offices for some of them here in Houston. The commercials play here.  Are you not paying attention?

 

 

Hanabi-chan
Hanabi-chan topcommenter

 @jesskalinowsky I was surprised that no one has sued Ashford for that. I am not a lawyer, so anyone who is knowledgable can answer that question. I was under the impression that if a contract signed by a minor is not valid.

jbottoms
jbottoms

 @Carlos I am so glad to see this article and to hear from you, Carlos, I was almost (thankfully, not) taken in by the smoke and sugar blown in my face by Ashford's salespeople (er, umm, ahem!) i mean <making air-quote> "academic advisors" ... real slick bunch, hard to resist with noses that would make Pinoccio jealous.

counsel
counsel

 @Hanabi-chan It's a local free press.  You pretty much proved my point exactly. 1) It's old news, 2) that it has some tenuous "bearing" on the state might have been worth mentioning in the article and you still didn't understand you were validating my comments each time you went to outside sources to come up with that.  The could have made the effort to come up with one of the local dupes for one of their many anecdotes just to make the effort to tie it in locally. Didn't.  The author, of course, has no ties to Houston other than the Press fobbing off their writing to him.

 

Turn the paper over to Downing, Spivak, and Malisow.

smoothopr_2
smoothopr_2

The Strayer,PHoenix are along the Beltway 8

clarice.jovan
clarice.jovan

 @Hanabi-chan I agree. This can definitely be disputed in court. I wish the family the best of luck. 

Hanabi-chan
Hanabi-chan topcommenter

There..not their damnit! Stupid Mondays!

Hanabi-chan
Hanabi-chan topcommenter

I just saw an ad for Ashford over the weekend. First time, aside from this article, that I heard of this place. 

 

I think their is a  Phoenix building on Space Center Blvd near Bay Area in Clear Lake. Or they are just the major tenant.

 
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