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the university of phoenix az has offended by the name of john sperling
and he recently has sold his shares of stock stock
four fifteen nine million dollars
and the reason why he did that was because afternoon gainful employment act
passed
for-profit colleges
side huge increase in the costs of their stocks
now anything with that gainful employment actives
so these for-profit colleges uh... were found to have these deceptive recruiting
techniques the recruiting students promising them the moon and stars after
they graduate uh... at the same time the students we take out these huge loans
and then they would anchovies programs that were not beneficial for them at all
they would graduate with huge student loan debt right and date would default
on those debts because of the fact that they were unable to find work after
graduating
so he obama administration not congress and they found that this is a huge
problem anyone it's you baby late the for-profit system because in the end the
losers here are the american taxpayers
because our tax dollars uh... art funding the schools
you know that our tax dollars are i'd go into the financial aid
and that allows the students to go to these horrible institutions right
so the about so congress decides that they're gonna pass to gainful employment
act
which would make sure that the certain number of students who graduate from the
schools i'll find work
if they do not find work the government will no longer a offer financial aid to
those students it should they choose to go to for-profit colleges
so it was a very
strict uh... proposal
and a for-profit colleges freaked out there you know what to do uh... but they
decided okay we know that everyone in government is blocked
so we're gonna start by using some campaign dollars they start finding both
republicans and democrats actually finding more democrats than republicans
ok heavy funding
and in the endgame for employment act passed
uh... it was a bearing watered down the information
basically it gives these for-profit colleges three different shots to get
things right within a four year time span
okay and daddy amin in four years they have to mess up three times in order for
the government to take the finding a way
that's unbelievable america's jobs for all enough time to cash out if thats and
what do you wanna bet
that that's going to get extended one forty years ago
when the first four year period is up twenty one and that of the an exception
for it because this is a bill that was their well-paid you probably know this
maybe some of our listeners know this student loan debt in this country is now
more than credit card debt so it's a huge problem plus because of the bankers
are on the economy and we can't get the government to create the stimulus funds
needed to get people back to work
we have youth unemployment
of kids into a real schools with junior school is just horrible just through the
roof so
or we have a whole generation of kids already
that is coming out of college right now and unable to find work and on top of
his in these skin
you know i mean this is a mail this week rather scammers the schools are scammers
a it's not simple and i know that there are
there are a lot of professors in educators that each of these
institutions are highly qualified don't get me wrong
but the school's but do not offered the the degrees that are necessary to sexy
after they graduate ok uh... uh... another thing that will are honestly
astonish you is the fact that only twelve percent of students in the united
states attendees for-profit colleges however
fifty percent of the default on student loans
comfort students who graduated from for-profit colleges
that's a good and bad for proper colleges you don't just mean a reputable
private university on a known about this industry have
the kind of college it doesn't really have the campus in gets these schools
have investors monday by a private universities like usc they don't have
investors they're not run like businesses like the schools are run like
businesses
that's the difference
so uh... the university of phoenix kaplan college all of those are
for-profit institutions are run by businesses and they make huge profits
and they make huge profits because of the american taxpayer
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