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Harkin says nearly half of for-profit school students drop out without a degree
By Edith Barlow on Oct 2nd, 2010
Iowa Senator Tom Harkin stated this week that more than half of for-profit students drop out without earning a degree. Borrowers who end their schooling are forced to begin making education loan payments immediately. Harkin said out of 960,000 students who enrolled between July 2008 through June 2009 in financial institutions run by 16 for-profit companies, 57 percent had withdrawn from classes as of August 2010.
"The bottom line is this: For students enrolling in for-profit schools, graduation with a degree is a possibility, but debt without a diploma is a probability," Harkin told the Washington Post.
For-profit colleges receive 85 percent of their revenue from student financial aid. Nealy $24 billion of for-profit school revenue comes directly from grants and loans, which comes from the pockets of taxpayers.
"The system has a problem," Harkin said, according to the New York Times. "The system invites abuse."
Borrowers who have dropped out of a for-profit school are encouraged to look into debt counseling. An expert can help individuals create a repayment plan for their education loans that works best with their financial situation.
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