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Dick Durbin Allegedly Insults Student as For-Profit College Debate Unfolds

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David Mahan, a 29-year-old student studying digital design, says an angry Sen. Dick Durbin noticed him wearing a T-shirt for his college -- Illinois Institute of Art, Schaumburg (ILIS) -- while protesting outside an education hearing Durbin was holding at the Dirksen building last Tuesday. Mahan (a veteran who served in Iraq, Kuwait and Afghanistan) tells me that after some back-and-forth, Durbin said: "I don't give a tick s--- about ILIS."

A Durbin spokesman denied the Democratic senator made that particular remark, but Matt Reams, another ILIS student who witnessed the encounter, insists that he did.

One might wonder why a college student would take such umbrage at criticism of his school, but Mahan tells me he has invested himself so much in ILIS that he feels an attack on it is tantamount to an attack on him.

dick durbinThere's more to the story, of course. Durbin has called for more oversight of for-profit colleges such as the one Mahan attends. The hearing was intended to look at complaints that such colleges entice students to take on massive debt while failing to deliver on their promise of jobs that pay enough for graduates to pay back what they owe.

A proposal
by the Department of Education would require for-profit educational institutions to demonstrate that their graduates are repaying student loans (and that they do not have a high debt-to-income ratio) before qualifying for additional loans. There have also been proposals that for-profit colleges should bear a percentage of the risk if their students default. (For-profits received more than $24 billion in federal grants and loans last year.)

Studies show that students who attend for-profit schools like Strayer, Devry, and The University of Phoenix, for example, currently have a lower rate of repayment than students who attend other schools.

These proposed changes, of course, could have a major impact on for-profits. Earlier this year, as part of the health care reform bill, the Obama administration pushed most private lenders out of the student loan game (they can still manage the loans) in favor of having the government almost exclusively make direct loans to students. As such, withholding government loans is a serious stick to wield over for-profit schools.

Critics charge that when it comes to picking winners and losers in higher education, as might be expected with the Obama administration, for-profits are now at risk -- even though, on average, for-profit institutions charge less than private non-profits, according to the College Board (and less that public non-profits, once taxpayer subsidies of public schools are taken into consideration).

Nevertheless, a proposed "gainful employment rule," which ostensibly seeks to ensure that graduates of an institution are able to find work after graduation -- may well end up favoring traditional non-profit schools over for-profits. This, of course, has for-profit institutions worried. For example, ITT Technical institute ran a full-page open letter to President Obama in Sunday's Washington Post about it.

To be sure, there are some bad actors -- colleges that run TV ads promising the moon to students, but then failing to deliver -- but these schools are the minority. One school that could be hurt by the changes is ILIS, which is accredited by The Higher Learning Commission.

In a June letter to the editor, ILIS campus president David W. Ray wrote, "The proposed rule, cleverly termed 'Gainful Employment,' will remove student choice and deny access to programs and degrees for many. The result is that entire programs now available under Title IV federal financial aid could be ineligible if they don't meet the Education Department's unrealistic 'one-size-fits-all' debt-service-to-income ratio test. Career-focused education is at particular risk."

(According to ILIS: "Of all 2008 graduates of The Illinois Institute of Art -- Schaumburg available for employment, 88.1% were working in a field related to their program of study within six months of graduation, at an average starting salary of $31,722.")

These for-profit schools serve a lot of non-traditional students like Mahan. Many are older students who often work part time, making one wonder if government skepticism may be at least partially due to how different these students are from the people making the rules. Ken Blackwell, a conservative columnist who also taught at Xavier University, thinks the proposed rules reflect elitism, noting that, "A college or university that primarily serves working-class adults is, apparently, somehow illegitimate to these liberals."

Such criticism, however, is not merely coming from the right. Many of the students attending these schools come from poorer families than those attending traditional colleges. As The Washington Post recently editorialized: "The government is right to fashion reasonable regulation to discourage fraud or misleading practices, but it would be wrong to impose rules that remove an option that is especially useful for poor and working students."

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10 Comments

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jerryemt2001

Umm, yea, state colleges' students NEVER find themselves in debt after attending college paying out of control tuition, huh? Just another wink and a nod to public unions.

September 07 2010 at 9:05 PM Report abuse +6 rate up rate down Reply
cchucklest1

sooner or later the for profits like the university of phoenix are going to be exposed for what they are scams. the classes are offered on line, you don't know who is doing the work and taking the tests. these degrees don't mean anything. this is going to blow sooner or later. they let everybody in and they don't who is actually doing the work.

September 07 2010 at 8:06 PM Report abuse -2 rate up rate down Reply
twbythesea

I'm a court reporter (stenographer) in California. Twenty years ago, I was looking for a court reporting school to attend. The only ones listed in the phonebook were the for-profit schools. I called them all, and they were all around $10,000 to $12,000 for the program, which I couldn't afford. Then I ran into someone who told me about a California junior college 30 miles away. It cost me around $100 a semester, plus books and materials, way, way cheaper than the for-profits. The program and teachers were excellant, and I completed the course and passed the state exam the first time I took it, which only 20 percent of first-time candidates pass. The teachers in the program are motivated by the requirement by the State that 80 percent of their students pass the sate exam the first time, or they lose funding for their program. The programs in the article above are all given at JC's. And units earned at JC's are transferable to four-year schools.

September 07 2010 at 6:41 PM Report abuse +4 rate up rate down Reply
KMA

If the college is accredited by the same accrediting agencies that rate the universities with national sports programs and has credit that is transferable to those colleges, then this guy is right to be defensive. However, if you can't transfer transcripts credit your college is not up to snuff (like it or don't). Diploma mills take your money and you get a piece of paper to show for it. What fortune 500 company would hire someone with this kind of degree when there are national accredited institution graduates available for the same job?

September 07 2010 at 5:51 PM Report abuse -1 rate up rate down Reply
winzme

I was looking at the graduation rate for some non-profit colleges, i.e. state or government colleges. The rates were really appalling there as well and costs were not cheap. The site was pointing out the even the cirriculum at college level has gone down hill and does not prepare students. Students are studying less per week as well. Maybe they should look at all colleges rather then just the for profits. Higher education should not be allowed to go downhill.

September 07 2010 at 5:08 PM Report abuse +9 rate up rate down Reply
Alan

This is supposed to be a two party system. The Republican have somehow figured a way to have a one party system. The republicans are a block to getting over this horific depression. They are the Party of "NO", My home is a policy of "NO Vote" for any Republicans!!!!

September 07 2010 at 4:26 PM Report abuse -18 rate up rate down Reply
2 replies to Alan's comment
luvnxs

Dear Alan - no, it is not supposed to be a 2 party system. It's a representative democracy allowing any party affiliation, or not, a candidate chooses. As for your allegation against the Republicans, I will argue that it is their absolute duty and responsibility to block all bad legislation with the specific intent to get us out of these horrific economic times. The liberals have done more than enough damage already and must be stopped from further deepening the damage. Also, unless you are totally new to politics, I'd also point out the hypocrisy (or at least the sheer naiveté) of your rant as not long ago the opposite side of the isle were far more aggressive in their blocking of just about every attempt at a judicial nomincation and implementation of good (IMHO) economic policies (including those warnings of the Fannie Mae and Freddie Mac debacle) during the Bush 8.

September 07 2010 at 6:27 PM Report abuse +8 rate up rate down Reply
haughtbs

Alan, with a Democratic House, a Democratic Senate, and a Democrat as President, how can you say it is a one-party Republican system? And luvnxs, our country is not a representative democracy, it is a republic; think about it when next you give the pledge to our Flag.

September 07 2010 at 9:58 PM Report abuse -1 rate up rate down Reply
catalogsplus

Dems are imploding on themselves and much of it is arrogance.

September 07 2010 at 3:47 PM Report abuse +17 rate up rate down Reply
jjasgeirson

Sadly, I think that there are school operators that game the student loan program to attract students that may be qualified for loans and pell grants but who are poor candidates to complete the classes and get employed in the field. As a former workforce center director I saw too many students who were unable to keep up or unable to find training related jobs unpon completion of training. These schools were unable to provide adequate placement assistance or in the worst cases did not care about placing their graduates. Unfortunately some of the workforce boards have too many of these "educators" connected to the system and they are able to suck too much of the limited resources out of the limited dollars available for job training funded through local workforce programs, either through poor placement records or extremely high costs or both.

September 07 2010 at 3:44 PM Report abuse +4 rate up rate down Reply
MAC

i thougt that everybody had to repay the student loans.....please tell me how to get out of paying mine back...

September 07 2010 at 2:52 PM Report abuse +12 rate up rate down Reply
1 reply to MAC's comment
M Anthony Carlo

Did you apply for deferrment or forbearance? If it was a for-profit school you might be able to make a legal case out of it if you felt you were deceived or pressured into enrollment and have the loan squashed. But if it was just a standard community college or university, you don't have much of a case. Apply for economic hardship or deferrment and it gets you off the hook for 6 months. If you are still having financial issues at the end of that term you can reapply. I am not sure if interest is accrued, but a Federal Stafford loan, if that's what your loan is, is pretty low interest. Apply for deferrment or forbearance until you can pay it back. I know you need a degree (and some luck) to get a decent job these days, but it is kind of irresponsible to attend an institution and receive an education on someone else's dime and not pay it back.

September 07 2010 at 3:29 PM Report abuse +6 rate up rate down Reply

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