For most of this decade, housing loans came into banks that were based on false assumptions and predatory practices that sold mortgages to people who had no chance of paying them back. We’re all now familiar with the tragic results. A new report due out from the Government Accountability Office shows that another sector of the loan industry may be in for a similar shock: for-profit schools, according to some consumer advocates, convince people to get student loans for educational programs that, in many instances, lead to non-existent jobs. Is the student loan industry in for a similar shock? Are for-profit schools really taking students for a ride right back to the unemployment line or are they doing their best to retrain people in a terrible economy?
Read the full GAO report here.
Betsy Imholz, special projects director, Consumer’s Union
Harris N. Miller, CEO/President, Career College Association