Overall, the repayment rates at these for-profit schools was only 36% in fiscal 2009, according to an analysis of the data conducted by the Institute for College Access and Success, a student-advocacy group.And here are some other interesting facts regarding the exploitation of the poor from a report (pdf) in May 2010 by the Project on Student Debt:
By comparison, the repayment rate at private nonprofit schools was 56%, the group found. At public state colleges and universities, the rate was 54%.
Losing federal aid would effectively put many programs out of business: Some for-profit colleges rely on such funding for nearly 90% of their revenue — the maximum percentage allowed by the federal government.
Although just 10% of college students attend for-profit schools, the schools collect nearly 25% of the $24 billion the government allocates each year to fund Pell grants and Stafford loans.
- Almost one in four (24%) of all 2008 graduates from for-profit four-year colleges owed at least $40,000 in student loans, compared to just 6% of graduates from public four-year colleges and 15% from private nonprofit four-year colleges.
- Pell Grant recipients who graduate from four-year colleges are more likely to have high debt if they attended a for-profit college. Among graduating seniors, 23% of Pell Grant recipients from for-profit colleges carried at least $40,000 in student loans, compared to 14% at all other colleges.
- The proportion of for-profit graduates with high debt is similar for all racial and ethnic groups (21-24%).
- Students who attend for-profit four-year colleges are more than twice as likely to default on their federal student loans as those from other four-year colleges. . . .