Financial Aid DRGs
Why is our precious financial aid money going to proprietary, for-profit “schools”? There is unequivocal proof that these vocational programs typically cost four (4) times what a community college costs for the same program; additionally, the community college programs are inevitably superior. Research shows that students who take loans to attend such “strip-mall universities” are much more likely to default on those ...more »
Why is our precious financial aid money going to proprietary, for-profit “schools”? There is unequivocal proof that these vocational programs typically cost four (4) times what a community college costs for the same program; additionally, the community college programs are inevitably superior. Research shows that students who take loans to attend such “strip-mall universities” are much more likely to default on those loans.
I concede that there are a few proprietary institutions that are strong academic advocates, these few have my respect; it is their lackluster brethren that give them all a bad name. I am glad we live in a free society; I would therefore not suggest taking away a student’s option of attending the program of their choice. I DO however, propose that financial aid be doled out on a DRG type system.
For example, students matriculating into my program can complete EVERYTHING – tuition, fees, books, health insurance, uniforms (I even counted shoes), and credentialing examinations post graduation, etc. – for a maximum of $15,000 (this is a 91 credit accredited AAS degree). The local proprietary organizations cost $48,000 for the same program and students are still left to pay several thousand dollars worth of things that I counted in my maximum cost; their total is closer to $55,000 in the end. The student could have attended Harvard for that price!
If the DOE limited the maximum amount of financial aid a student could receive to the average cost for that program, a student could wisely choose: a nearly free high-quality community college education, or a partially paid for, yet faster degree from somewhere else. The DOE would not be posting the financial losses felt from as many defaulted student loans, community colleges get a bump in enrollment, and students have a fair choice in educational options. The vultures in the educational business would find a different group to prey on; the good proprietary schools would find a way to make the regulations work as they would have the students’ best interest at heart anyway.
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