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Obama’s Effort To Regulate Aid To For-Profit Schools Faces Stiff Opposition

May 31, 2011 by  

Obama's effort to regulate aid to for-profit schools faces stiff oppositionAccording to data from the National Center for Education Statistics, the number of bachelor’s degrees awarded by for-profit colleges has increased by more than 400 percent over the past decade.

The agency reports that 27 percent of all students who were enrolled in college between 2000 and 2009 studied at for-profit institutions, many of which are more career-focused than traditional schools.

However, the popularity of these higher-education programs has not dissuaded President Barack Obama from trying to implement regulations that would restrict the colleges’ access to Federal aid. According to FOX News, the President’s efforts have been opposed by more than 300 lawmakers from both political parties.

“Can you think of any other issue that former Speaker Nancy Pelosi and the current Speaker John Boehner agree on?” asked Lanny Davis, who served as legal counsel to former President Bill Clinton, quoted by the news provider. “The policy is so wrongheaded that it brings liberals and conservatives together.”

Andrews said the idea behind the legislation — to prevent low-income students from being saddled with enormous student loans — is noble, but the execution is all wrong. He claimed that Obama’s proposal would force for-profits to adhere to regulations that most community colleges and universities could not meet, which would likely put some for-profit schools out of business.

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  • sean murrey

    No way keep your hands off you big baboon obummer

    • hicusdicus

      Did you get your education from one of those for profit schools?

      • http://PersonalLibertyDigest Randy 131

        The difference between these ‘for profit schools’ and the ‘nonprofit governmnet regulated schools’ is that the ‘for profit schools’ can not afford to alienate students through the attempt of liberal indoctrination, which is the prime goal of the ‘nonprofit government regulated schools’. Now do you understand Obama’s attempt to defund, and thereby destroying, most of the ‘for profit schools’?

        • nax777

          George I, Bill, George II and Barack have all lead us to today. The era of fear continues and our children are going to grow up with government workers shoving their hands between their legs because this is the America you want and did not grow up in yourself!
          Or is this the kind of national defense that you wish you would have grown up in?
          Too many people or more brain washed by the media than care to admit out of fear! Speak sound bites and wear a leash is the new motto that Dem and Pub supporters live by today.

          I am out of patients and will strive to have words hit like a ton bricks and let the chips fall where they may!

          Replace the powers with citizens that can be immediately removed by citizens and never serve for a life time. We must take control ourselves. Please join with us at you might be able to click on my name. This will take you to my link page that links to, and

          P.S. Have you heard of “you cut” @

          • TombstoneLizard

            Uh, the word is “patience,” not “patients.” As in “I have little to no patience with the liberal media”; or, “Nurse, change the channel, the news is making our patient sick…Oh, no! Call the crash cart, stat!”

  • karolyn

    From what I’ve seen and heard, many of these for-profit schools are just cranking out those degrees to everybody; and then those people can’t get jobs anyway because those degrees don’t mean diddly. Some of the schools are good ones, but there are a bunch that are certainly third-rate. “Let the buyer beware.” I do think that they need to meet high standards to be eligible for Federal money, just like any non-profit schools.

    • hicusdicus

      What else is there to say. I totally agree. Its just a a new slant on selling snake oil.

    • Cawmun Cents

      Detroit….if you like what progressives do to schools…go to Detroit.

    • Gary

      ITT is a good example of a school for profit. As long as you keep paying the money, you can’t fail. I have tried to hire people from “for profit schools”. I give a simple writing test to the applicants from schools like ITT. I ask them to write a three paragraph story about Donald Duck. In the three years I have done this, I have never encountered an individual from private for profit schools able to convey a coherent thought on paper or had the most basic understanding of sentence structure.

      I always end up hiring people from the public school sector.

      • TombstoneLizard

        I am completely surprised that you can get anyone under 30 to write a coherent statement about Donald Duck. Try “The Mighty Morphin’ Power Rangers” next time. Or the “Teenage Mutant Ninja Turtles.” Then again, well….Good luck!

    • Dan az

      I think we should just let everyone do as the chief did and buy a diploma then there would be know arguing over whether they need federal tax dollars or not.Whats good for the goose is good for the gander.I think you can still get a diploma from occidental and haavard for about 1500.00 and I’m sure it was a lot cheaper back then.

  • igootmyrights

    the public schools need all the money they can get. at least trhey TRY to teach their students how to read and write nunbers before they award them a bachelors degrgee. scerw the private schools. fed govt keep your money awat from private schools.

    • Bud

      Really? Since when?

    • Skyknight

      I assume from your spelling that you are a product ofthe public school systems.
      Most students attending the private schools are there because they want to get an education and learn. Also possible not wanting to be exposed to the left wing ideology that the Unions push through the public systems.

    • del

      All the public school system does is teach kids they always get another chance. They fail a test, they get another chance to pass. They don’t turn in homework, they get another chance to turn it in. They fail a subject, do some extra credit to pass. When my daughter was in private school she had homework every night. When she started public school in 4th grade, the only time they assigned homework was when the daily class work was not completed. Spelling test where given in multple choice. Really! How hard is it to pick the right answer? When I asked why they didn’t assign homework the teachers said, “kids won’t do it anyway. And the parents get mad when they assign homework over the weekend.” This is what has come from “No Child Left behind”.

  • Colleen

    Hey, igootmyrights: just where did you go to school? If you actually did, I would be ashamed to be the school named as none of it (education) seems to have stuck.
    Obama, the Liar in Chief, has one goal in his pea brain. And that is to control every aspect of our lives. And if we don’t want or like it?? Tough!
    If a kid gets a questionable diploma from a not so reputable school, and then cannot find work….who’s fault is that? The kid who enrolled thinking he/she can get by in life by cheating.

    • Judy

      Colleen, you are right. It is all about control.

  • hicusdicus

    Money does not make for an education if the gray matter is in short supply.

  • Randy

    “Igootmyrights”- It’s obvious your mastery of spelling and word smithing has come from the excellent public (government) education you have enjoyed. Let’s bring that excellence downward to everyone by not allowing private schools to have access to federal grant money……then all college graduates can be as poorly educated as you are. Oh yes, Obummer has already pulled this stunt off……he took all student loans away from private banks and put them in “OBAMACARE.” Yeah, that’s ticket. Have a federal bureaucrat who rations healthcare also decide who gets to go to college and who doesn’t.

  • Old Sully

    The better question is “Why should there be a Federal Department of Education (DOE) to begin with?”

    When I went to community college (pre-DOE) and then the state university I got a part time job and could pay the full amount of tuition. My daughter works just as much as I did but cannot begin to cover her state college tuition.

    The steep rise in the cost of college is directly attributable to the policies of the DOE. Private schools by law must increase their tuition every time the DOE increases their aid.

    As for worthless degrees, both public and private schools produce an abundance of them. Take a clue they don’t involve any meaningful level in subjects as math, physics, engineering, or chemistry.

    See the college conspiracy video from the “National Inflation Association”

    My son made a better choice, he went to electrical trade school, got paid for working as an apprentice and now is a journeyman electrician with steady employment and no school debt.

    • Bus

      The big problem here is student loans, created and regulated by the government. Get rid of the loans FOR ALL THE SCHOOLS and watch tuition go down to a reasonable amount. I went to public funded institutions and I teach at a for profit institution occasionally and I think they both serve a purpose and both have some weaknesses about how they go about their efforts. Its just a sad deal that the for profits have had to use the student loan scam to stay afloat and make some money.

      • RivahMitch

        Exactly… although the point you miss is why LBJ pushed the program through in the first place… Gotta convince middle class parents (who were educating their kids quite adequately already) that they can’t even afford to educate their kids without the government. The whole idea was to create more dependency… We won’t talk about why many colleges and Universities provide massive “REMEDIAL” reading and math courses for the products of the union-controlled public schools (which make sure to indoctrinate but don’t bother to maintain educational standards because the ignorant are easily led.

  • Goose

    I, for one, am appalled that tax dollars are going to for-profit colleges. This is one I support Obama on.

  • http://? jacob

    I can only say this remote-control-for-profit-colleges must be
    one hell of a good business.

    I contacted one and I kept on getting a bombardment of reminders

    I forgot to state I’m 80….

  • ScottC

    While I see some schools pandering to students puerile interests with false claims of opportunity to make big money (e.g., video gaming), others meet the needs of students ignored by the regular universities. I was crossing the UCLA campus with a linguistics professor there and asked him why no linguistics classes were taught at night. He responded, “Because we don’t have to.” The issue of public tax support for UCLA came up and I announced that I was not supporting the tax increase. Shocked (knowing that I had two doctorates), he exclaimed, “My God, why not?!?” I answered, “Because I don’t have to.” Being a UCLA professor, he could not connect the two and wandered off shaking his head.

  • GRusling

    Among Obama’s “For Profit Schools” you find places like Baylor, SMU, Stanford, Notre Dame and Purdue. The list goes on and on, and I’d hesitate to name most of them as “below standard” so some people around here need to check their hole-card.

    MOST “Trade Schools” are for profit, so pulling their access to Student Loans would hurt the working class. Such schools would soon disappear and we know that “Public” schools in that arena simply don’t exist, so who profits from such a move?

    Answer that question and you’ve identified those who promote such stupidity…

  • Bob from Calif.

    This is just another level of control for the Agenda 21 crowd. First the auto industry, next the health care industry, and now putting some finishing touches to get control of education in this country.

  • Sadly Wiser

    This is using a baseball bat like a flyswatter! Just weed out the few for profit schools with the bad graduation records, and insist of proper loan counseling for the rest. In the meantime, now we have to be vigilant and make sure that they don’t sneak in language at the last minute that ropes in the public schools too. My child will be a freshman at a state university in the fall, and the loans are equal to 25% of my AGI. As a single parent, my child (who is salutorian at graduation) could not afford college without the loans.

  • smitty

    ALL federal agencies need to be scaled back..many are obsolete, useles, and redudant. Then cut back all the other 5% in funds each year until they are phased out.

    Why should certain groups in the USA receive federal aid? ALL are already protected under the Constitution.

    Like all these hate crime laws to benefit homosexuals. Murder is murder.

    Why should murder of a homosexual be MORE horrendous than murder of a heterosexual.

    Why do they want homosexual sex positions taught in sex ed at school?

    We saw the movie advertureland last night…the preview said nothing about homo sex in the film…it was disgusting.

    Then another movie the next day about lesbian sex.

    Stop shoving alternative lifestyles down our throats

    • Albino.

      Errrr…. It’s called research…… Then don’t watch the movies…….. Then perhaps they wouldn’t make them in the first place!!! Oh I wouldn’t see Hangover Part2 if I was you!! Very funny movie, but maybe you wouldn’t understand the comedy!!

  • Albino.

    Mainstream Media Finally Acknowledging College Bubble

    The National Inflation Association would like to congratulate its members for helping spread the word during the past week about America’s college tuition bubble and how college education is the largest scam in U.S. history. After NIA’s release of ‘College Conspiracy’ on Saturday, May 14th, over 340,000 people have watched the documentary in its first six days of release, with many thousands of Americans tweeting about the movie on Twitter and sharing the movie on Facebook. Because of your help in spreading NIA’s message, the New York Times finally felt compelled to admit the truth and write a cover story Thursday morning discussing some of the facts that NIA exposed in ‘College Conspiracy’. Bloomberg, NBC News, the Washington Post, and many other mainstream media outlets, also came out with their own reports in recent days exposing some of the facts from ‘College Conspiracy’.

    On Thursday’s cover of the New York Times, Catherine Rampell wrote an article entitled ‘Many With New College Degree Find the Job Market Humbling’. According to the New York Times article, only 56% of college graduates in 2010 were able to get a job by this spring, compared to 90% of the graduates in years 2006 and 2007. Only half of those finding a job, found a job where their degree was required. The median starting salary for college graduates last year was $27,000, down 10% from the $30,000 starting income in years 2006 to 2008.

    One of NIA’s expert guests in ‘College Conspiracy’ was Brian Mackey, a national recruitment manager for GEI Consultants. He said in our movie that 60% of college graduates are now being employed in low skill jobs where their college degree wasn’t even required. NIA’s research has uncovered that 70% of high school graduates have been successful at getting these exact same jobs without even needing a college degree. Mackey also pointed out in ‘College Conspiracy’ that 20% all new waiter and waitress positions are being filled by college graduates. The New York Times article added to Mackey’s point, reporting in their cover story that college graduates aged 25 to 34 working in the food service industry at bars and restaurants increased 17% in 2009 over 2008.

    Bloomberg aired a live television segment on Thursday, ‘Is a 4-Year College Degree Worth the Cost?’ and cited a poll that shows 57% of U.S. adults say college is not worth the price with 75% of U.S. adults saying college is unaffordable. Bloomberg had on a guest Alexis Ohanian, co-founder of, who said, “there are plenty of students out there who would really benefit from just avoiding a lot of the college stuff and just trying to create something”. NIA agrees with Ohanian that the experience of trying to create a job in the real world will do most Americans a lot more good than getting deeply into debt to attend college. Ohanian says that his company and other firms in Silicon Valley hire employees based entirely on their experience and past accomplishments and not a college degree.

    NBC News anchor Brian Williams came out with a report Thursday night about the college bubble in a segment entitled, ‘Education Nation’. Williams reported many of the basic facts from ‘College Conspiracy’ including that student loans are one of the few types of debts you can’t get rid of in bankruptcy and that total student loan debt is now above $800 billion and exceeds credit card debt. NBC News spoke to one prospective student who has chosen to attend a community college rather than the prestigious $50,000 per year school she was accepted to, saying, “I don’t want to graduate with a bachelor’s degree with $80,000 worth of debt.”

    According to the NBC News report, Tidewater Community College in Virginia is now requiring students who apply for a student loan to complete a worksheet detailing their future ability to pay the loan back. Although NIA applauds Tidewater for taking the initiative, we find it absurd that the U.S. government doesn’t already do this. The U.S. government gives out student loans to practically anybody, regardless of their future ability to pay the loan back. This is complete insanity, because not only is this the reason tuition inflation is so high, but it will be all U.S. taxpayers and holders of U.S. dollars who will end up paying for these bad debts.

    The Washington Post published an article this week entitled, ‘The Real Debt Crisis’, which reported that 85% of college graduates this year will be moving back home to live with their parents. The Post discussed the stunning growth in for-profit colleges from year 2000 to 2008, which saw a 225% increase in enrollments from 670,000 to 1.6 million. The five largest for-profit colleges are receiving 77% of their revenues from government loans and grants.

    In ‘College Conspiracy’, NIA discussed how an NIA member who is the owner of a private vocational school is forced to raise tuitions every time the government increases financial aid to students. This is due to the 90/10 rule, which mandates for-profit colleges to receive at least 10% of their revenues from private sources. It is insane that the government would even need a 90/10 rule. This is just another example of government legislation that was passed solely to deal with the problems created by the government’s own programs and regulations.

    Up until this week, the mainstream media completely ignored the college bubble, just like how they previously for many years ignored the Real Estate bubble. Up until the Real Estate bubble began to burst in 2006, the media encouraged Americans to take out no money down interest only subprime mortgage loans to buy a house at a monthly mortgage payment that was double the cost to rent that same house. The media proclaimed that housing prices can only go up and that Americans who didn’t buy a house would be priced out of the market forever. The media brainwashed the public to look down at renters as if they were incompetent and throwing their money away, even though they were putting a roof over their head at a very affordable price and are in much better financial shape today.

    After the Real Estate bubble began to burst in 2006, which led to the financial crisis of 2008, the media began proclaiming the new best investment to be a college degree. Whereas in the past, Americans didn’t need a job, they would simply take out mortgages to buy multiple houses and live off of the appreciation in home values; now that Americans needed to get a job, the media began brainwashing them into believing that college degrees were their passport to prosperity. The media promoted myths that NIA has proven in ‘College Conspiracy’ to be completely made up lies, like that college graduates earn $1 million more in lifetime income than high school graduates without a degree. The media also frequently cited and gave credibility to phony research reports that projected there to be major employee shortages in different fields, all of which turned out not to be true.

    Up until the release of ‘College Conspiracy’ this week, the mainstream media never did a thing to warn Americans about a college bubble. Not once did anybody in the mainstream media ever connect the dots and tell the truth that college tuitions are rising as a direct result of government financial aid. The media simply published articles on how to save money for college and why parents should setup college savings accounts for their children. The media brainwashed the public to look down at parents who didn’t send their kids to college, with the notion that if you don’t go to college and get a college degree, you will never have a successful career.

    NIA believes the U.S. government needs to end all financial aid to students immediately. There is nothing in the U.S. constitution that authorizes the U.S. government to be in the student loan business. If there were no government student loans and grants, all Americans would be able to afford college and the quality of education would be far superior to what it is today.

    • TombstoneLizard

      Excellent points! I might add, that as someone who is in debt to a student loan, I found the book prices of my community college to be an outrageous rip-off, and the education sub-par. I will pay my loan off, but not with my degree: Rather, it will be paid by my hard work as an independent writer who sells his material on the Internet, and markets to everyone he meets. I am aghast at the public and private schools, as they are all about their Unions (public) or their (privately-held)stockholders and board raises/bennies/ad nauseam.

  • http://personallibertyalerts John Despard

    It has been often said the President is the most powerful person in the US if not the world. He could be considered the CEO of a company with 300,000,000 or so people he bears some degree of responsibility for. Looking at it this way I find it ludicrous that he is only paid $400,000 per year plus living expenses while other CEOs earn millions or even billions plus some living expenses. I personally object to my tax dollar going towards paying anyone more than our President. If a school pays anyone more than $400,000 plus normal living expenses in a year they should not need taxpayer support.

  • Cath

    I have been getting emails from this site, and have always gone into comments to see what people where saying. It clearly seems like everyone knows each other. So just waiting for the attacks if I don’t clearly articulate! I have also seem people chastising people for spelling, suggesting to use spell check. I know my spelling is horrible, but haven’t figured out how to spell check when submitting to this site: Please be kind! So I am actually responding to some Memorial Day comments: Saw several conversations about what our troops are required to plege alligeance to: people were argruing about if it is to the constitution of The United States or the President appointed over them. My husband and I got into a major argrument over this, to the point that I demanded to see both oaths, the enlisted and the officer. So for enlisted people re-upping, it states clearly first to the constitution the normal thing,against all enemies foreign and domestic: but then it goes on to say “That I will obey the orders of the President of the United States and the orders of the officers appointed over me…. according to the UCMJ and so on:

    The Officer’s Oath is much simpler: to enforce and defend the Constituion of the United States against all enemies, foreign and domestic, that I will continue to bear true faith and allegiance to the Constitution and the Country whose course it directed, and that I take this obligation freely, without any mental reservation.
    So Help Me God!

    This is what my hubby has to refer to when he leads these type of events.

    We are Navy people, can’t really imagine the Oaths should be different, but you never know. My better half is prior enlisted now an “O” he is still now and has been doing this for over thirty years. I am not talking smak.. I have a little plated square with both oaths, one on each side…. Demanded it after the argrument.

    • libertytrain

      I wonder why they are both different – I wonder if it means the officer will sometimes need to think for himself and not follow the orders of the president -

  • Cath

    Sorry I replied for the first time on this thread, you guys had some awsome comments going! Forgive me for the unintentional break!


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