Tag: student loans
One shame in all of this, completely missed by the apologists (including Brian Moran) is that without federal grants and loans, these parasites could not exist at all; the market would do due diligence. Ignored by champions of the market are the realities of the market itself which in a complex world holds nothing ceteris paribus. Adam Smith's invisible hand is unencumbered by the flaws and shortcomings of human perception shaped in each individual's basket of experience. Smith lived in an essentially agrarian economy where those participating in the market had equal access to information; sometimes equally uninformed.
Citing a study conducted by the Virginia Career College Association, Jim Bacon argues that without the private sector, minority students would be "shut out of the higher education system." There are some seductive numbers. In 2008, 13.8% of students attending public institutions were African-American while 47.4% of the students enrolled in for profit schools were African-American. Clearly this was an attempt to appeal to undiscerning liberals and embolden righteous conservative free marketeers. However, Bacon is actually arguing that the market failed. That those who failed selection to the credible educational institutions were somehow maligned by the all knowing market forces. Uninformed, those failed applicants, the vagaries of the market misinterpreted, flock to the web of the private sector parasites.
The probe, led by Kentucky Attorney General Jack Conway (D) is focused on bringing attention to potential violations of consumer protection laws by for-profit "colleges". This may finally bring the sort of well-deserved scrutiny to the abuse of federal student-aid and loan programs perpetrated by an industry that is little more than an educational front for a money laundering charade.
"A lot of people who are in Washington right now want to run around talking about fiscal responsibility. Well, making certain that $25 billion in federal education dollars doled out is being spend in a way that appropriately trains people and prepares them for job opportunities that are out there ... That, to me, is a fiscal responsibility issue." - Attorney General Conway to the Huffington Post