CLINTON —
Senator Tom Harkin, D-Iowa, is continuing his investigation into for-profit schools, like Clinton’s Ashford University, through the Senate Health, Education, Labor and Pensions Committee.
Most recently, the committee hosted a hearing entitled “Drowning in Debt: Financial Outcomes of Students at For-Profit Colleges” on June 7.
According to Harkin’s communications director, Kate Cyrul, the hope is to have another hearing in July.
June’s hearing is one of five already held on the subject of the for-profit industry, all of which should be leading to legislation.
This most recent hearing focused on debt information, and what happens to for-profit college students once they graduate or drop out. Among the individuals who testified at the hearing was Hampton resident Eric Schmitt, who graduated from a for-profit college in Cedar Falls. He testified he has had difficulty finding work in his field of study and is unable to pay off his student loans.
At the hearing, Harkin admitted that student loans are necessary, as he used them to complete his education. However, statistics of high interest rates, increasing for-profit revenue and student default rates have called the combination of student loans and for-profits into the spotlight.
Statistics provided by Harkin at the hearing included the following:
• For-profit institutions account for 10 percent of college students, yet they receive nearly 25 percent of the total federal financial aid budget. This budget was $30 billion in 2010.
• Due to high tuition costs, 96 percent of for-profit college students take out loans, compared to the 16 percent at community colleges.
• Between 2009 and 2010 approximately half a million students left for-profit colleges without a diploma.
• For-profit companies spend well over half of their revenues on profit and marketing. The University of Phoenix was cited as an example with 450,000 students, 8,000 student recruiters and no career placement staff members.
• Students at for-profits make up 13 percent of student loan borrowers, but account for nearly half of all defaults.
• Some for-profit institutions set tuition so high that students are required to take out additional loans offered by the schools. Interest rates can be as high as 18 percent.
On Tuesday, PBS aired a Frontline segment titled “Educating Sergeant Pantzke.” Among the individuals interviewed were two former Ashford University recruiters, as well as Harkin.
The segment can be viewed online at pbs.org/frontline.
Local News
For-profit education probe continues
- Local News
-
-
Clinton School District prepares for move
Clinton School District's administration offices will move from Roosevelt to the former Harding Elementary School next month.
-
UPDATED STORY: Sparks jailed on OWI charge
Family and community members crowded the courtroom Thursday for the sentencing of a Charlotte man on charges related to a July 2011 crash that left two area teens dead.
-
Sparks sentenced
Justin Sparks, 19, of Charlotte, was sentenced today on charges related to a July 2011 crash that left two area teens dead.
-
Event celebrates volunteers, tourist attractions
Area volunteers and tourist attractions were honored Wednesday evening and encouraged to toot their own horns.
-
DOT director tours Clinton
Opportunity for Clinton to accomplish more rests in the roads, rail, sky and water, according to Iowa Department of Transportation Director Paul Trombino III.
-
Sewer rate hike 1 step closer to passage
Residents are one step closer to higher sewer bills after the City Council on Tuesday approved 5 to 2 the second reading of the rate increases.
-
Clinton School Board approves raises
After an hour and a half of closed session negotiations Monday, the Clinton School Board approved a 2-percent raise for administrators and directors.
-
Prince of Peace students graduate
Twenty-two Prince of Peace seniors Sunday received diplomas during the commencement ceremony at the Prince of Peace Catholic Church.
-
Mayor to veto ambulance bill
Clinton Mayor Mark Vulich will veto an agreement with Mercy Medical Center to provide backup emergency ambulance service. The City Council voted to approve the resolution 4 to 2 at its May 8 meeting.
-
Seven injured in 3-car collision near school
Police and firefighters responded to a three-car collision with an entrapped passenger at approximately 3:23 p.m. at 1350 Main Ave. in front of Eagle Heights Elementary School.
- More Local News Headlines
-
