Friday, August 14, 2009
According to the article in MSNBC above, for profit schools loan money to students who they know will default on those loans. Amazing, huh? I mean these are not some kind of "ineffective" governmental program or non-profit, starry eyed organization bent on helping students notwithstanding other considerations, such as making money! Well, for profit schools make money whether or not students learn or pay back their student loans. In most cases the federal and/or state government pays them either directly in tuition reimbursements or indirectly by "loaning" the students the money to attend these schools. Consequently, so when the endeavor to loan the money themselves, even knowing they may not get it back, its like losing to win!