For-Profit Colleges (Proprietary Schools)
May, 2020: For-profit schools are taking advantage of this pandemic by trying to trick students into attending their colleges. Please ignore commercials that promise you that you will fulfill all of your dreams.
Warning: As of May, 2015, many for-profit schools are being investigated or have gone out of business. Here is a link to information written by Sen Dick Durbin of Illinois. While he represents Illinois, the issues are similar in all states.
http://www.durbin.senate.gov/newsroom/press-releases/durbin-enlists-allies-on-the-frontlines-in-the-fight-against-predatory-for-profit-colleges
Here is some information about possible loan forgiveness, if you borrowed money to go to one of the Corinthian Colleges. It may be confusing, but it's worth spending the time to work it out.
http://www.consumerfinance.gov/newsroom/cfpb-secures-480-million-in-debt-relief-for-current-and-former-corinthian-students/
The bottom line: Do not accept Private loans under any circumstances. Federal loans are fine, but you should try to live cheaply, and do without them as much as possible. There are some safeguards associated with federal loans, but private loans can ruin your life.
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Please be very cautious when choosing your college. For-profit schools hire the best salespeople to try to get you to enroll in their colleges. This is rarely a good choice. They make promises are that are not true; for example, "100% of our graduates get jobs in their field right after graduation." These colleges also recruit many students who are the first in their family to attend college or students whose first language is not English. This is because these families do not know the information I have outlined below. Talk to your school counselor about any program that is trying to recruit you. Ask the college to meet with you and your counselor. (It’s a bad sign if they won’t). Check out similar programs at the community colleges. Even if there is a waiting list, it is worth the wait! Maybe you can get an internship or an entry-level job in the field while you wait.
Talk to people at PCC Pathways before you sign up for any loans; they can let you know if there is the program you want at another community college like Mt. Hood, Clackamas, or Lane Community Colleges.
http://www.pcc.edu/career/pathways/other-pathways.html
http://www.pcc.edu/career/pathways/contacts.html
If you need a flexible schedule or more online classes, check out the Adult Degree Programs at local not-for-profit colleges and check out online programs at PSU, WOU, EOU and OSU.
Here are reasons to be careful and get professional advice:
Most for-profit schools are many times more expensive than better programs at local not-for-profit schools and public institutions (locally, our public institutions are the community colleges and Portland State University). Not-for-profit schools often have private scholarships they can award, that will significantly reduce the expensive price tag.
Most for-profit schools are nationally accredited. Public institutions and not-for-profit colleges are regionally accredited. Why is this important? If you start attending a for-profit college and later realize that you cannot possibly afford to continue to borrow all the money they allow you to borrow, none of your classes from the for-profit college will transfer to a regionally accredited college. It may also be difficult to start all over at a regionally accredited school, because you already have tons of loans to pay back. If you miss payments or are unable to pay back your loans, you cannot borrow more money to attend the new college.
Do not believe it if anyone tells you that you cannot get in to another program. You may need to take some courses to prepare (prerequisites) for a given field, but that is important! If you are prepared for a program, you are more likely to graduate. If you are not prepared, you will probably not graduate. For-profit colleges have very low graduation rates. You will still have to pay back all the loans and you won’t have the degree needed to get a better job. I have also had students with excellent high school records earn gift financial aid at public and not-for-profit schools: gift aid is money that does not need to be paid back.
How do you know if a college is a for-profit college? Go to this website:
(http://nces.ed.gov/collegenavigator/)and type in the name of the college. Press search. When you put you cursor over the little "i" in front of the college’s name, it will tell you if it is a Public, Not-for-Profit, or For-Profit college.
Finally, I always recommend that students avoid private loans for college. If you are tempted to take out private loans, you are generally choosing a school that is too expensive for you. There are less expensive options that will be perfect for you in the long run. Here is more information.
Here are some links to articles about for-profit colleges:
They are targeting veterans: Hechinger Report
New article: The Century Foundation, Fall 2017. The US Department of Education is currently defending some of these organizations instead of advocating for students. Be even more careful.
http://www.latimes.com/business/la-fi-navient-lawsuit-20170118-story.html
http://petapixel.com/2011/09/02/us-gov-sues-the-art-institutes-for-11-billion-fraud/
http://www.oregonlive.com/money/index.ssf/2014/02/feds_sue_itt_alleging_for-prof.html#incart_river
http://www.nytimes.com/2012/07/30/education/harkin-report-condemns-for-profit-colleges.html
http://rockcenter.nbcnews.com/_news/2012/07/19/12842350-investigation-reveals-claims-of-unmanageable-debt-by-for-profit-college-students?lite
http://www.wweek.com/portland/article-8160-kitchen_bitchinrs.html
http://www.nytimes.com/2010/03/14/business/14schools.html?pagewanted=all
http://www.houstonpress.com/2012-08-02/news/for-profit-colleges-education-con/
http://www.usnews.com/education/articles/2009/05/21/which-colleges-leave-students-with-the-most-debt
http://www.oregonlive.com/business/index.ssf/2008/01/oregon_students_file_classacti.html
http://www.bostonglobe.com/business/2013/02/04/attorney-general-martha-coakley
Here are more resources:
From the National Association of College Admission Counseling: http://www.nacacnet.org/issues-action/LegislativeNews/Pages/For-Profit-Colleges.aspx
For veterans: http://www.consumer.ftc.gov/articles/0395-choosing-college
Vocational program guides: http://www.business.ftc.gov/blog/2013/11/how-i-spent-my-summer-vocation-ftc-revises-vocational-school-guides
Google ‘warnings about for-profit colleges’ if you would like to read more.
Talk to people at PCC Pathways before you sign up for any loans; they can let you know if there is the program you want at another community college like Mt. Hood, Clackamas, or Lane Community Colleges.
http://www.pcc.edu/career/pathways/other-pathways.html
http://www.pcc.edu/career/pathways/contacts.html
If you need a flexible schedule or more online classes, check out the Adult Degree Programs at local not-for-profit colleges and check out online programs at PSU, WOU, EOU and OSU.
Here are reasons to be careful and get professional advice:
Most for-profit schools are many times more expensive than better programs at local not-for-profit schools and public institutions (locally, our public institutions are the community colleges and Portland State University). Not-for-profit schools often have private scholarships they can award, that will significantly reduce the expensive price tag.
Most for-profit schools are nationally accredited. Public institutions and not-for-profit colleges are regionally accredited. Why is this important? If you start attending a for-profit college and later realize that you cannot possibly afford to continue to borrow all the money they allow you to borrow, none of your classes from the for-profit college will transfer to a regionally accredited college. It may also be difficult to start all over at a regionally accredited school, because you already have tons of loans to pay back. If you miss payments or are unable to pay back your loans, you cannot borrow more money to attend the new college.
Do not believe it if anyone tells you that you cannot get in to another program. You may need to take some courses to prepare (prerequisites) for a given field, but that is important! If you are prepared for a program, you are more likely to graduate. If you are not prepared, you will probably not graduate. For-profit colleges have very low graduation rates. You will still have to pay back all the loans and you won’t have the degree needed to get a better job. I have also had students with excellent high school records earn gift financial aid at public and not-for-profit schools: gift aid is money that does not need to be paid back.
How do you know if a college is a for-profit college? Go to this website:
(http://nces.ed.gov/collegenavigator/)and type in the name of the college. Press search. When you put you cursor over the little "i" in front of the college’s name, it will tell you if it is a Public, Not-for-Profit, or For-Profit college.
Finally, I always recommend that students avoid private loans for college. If you are tempted to take out private loans, you are generally choosing a school that is too expensive for you. There are less expensive options that will be perfect for you in the long run. Here is more information.
Here are some links to articles about for-profit colleges:
They are targeting veterans: Hechinger Report
New article: The Century Foundation, Fall 2017. The US Department of Education is currently defending some of these organizations instead of advocating for students. Be even more careful.
http://www.latimes.com/business/la-fi-navient-lawsuit-20170118-story.html
http://petapixel.com/2011/09/02/us-gov-sues-the-art-institutes-for-11-billion-fraud/
http://www.oregonlive.com/money/index.ssf/2014/02/feds_sue_itt_alleging_for-prof.html#incart_river
http://www.nytimes.com/2012/07/30/education/harkin-report-condemns-for-profit-colleges.html
http://rockcenter.nbcnews.com/_news/2012/07/19/12842350-investigation-reveals-claims-of-unmanageable-debt-by-for-profit-college-students?lite
http://www.wweek.com/portland/article-8160-kitchen_bitchinrs.html
http://www.nytimes.com/2010/03/14/business/14schools.html?pagewanted=all
http://www.houstonpress.com/2012-08-02/news/for-profit-colleges-education-con/
http://www.usnews.com/education/articles/2009/05/21/which-colleges-leave-students-with-the-most-debt
http://www.oregonlive.com/business/index.ssf/2008/01/oregon_students_file_classacti.html
http://www.bostonglobe.com/business/2013/02/04/attorney-general-martha-coakley
Here are more resources:
From the National Association of College Admission Counseling: http://www.nacacnet.org/issues-action/LegislativeNews/Pages/For-Profit-Colleges.aspx
For veterans: http://www.consumer.ftc.gov/articles/0395-choosing-college
Vocational program guides: http://www.business.ftc.gov/blog/2013/11/how-i-spent-my-summer-vocation-ftc-revises-vocational-school-guides
Google ‘warnings about for-profit colleges’ if you would like to read more.
