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Thursday, January 20, 2011

Is a Conspiracy Driving Rules On For-Profit Colleges?

Chris Kirkham kirkham@huffingtonpost.com | HuffPost Reporting

A Washington advocacy group is claiming that Wall Street investors have conspired with the Department of Education to craft rules that would damage for-profit colleges to drive down their stock prices. This would allow short-sellers to profit.

The new rules come in response to a growing body of evidence that for-profit colleges such as the University of Phoenix and Kaplan University have left college graduates with huge college loans. the students are unable to find jobs that provide incomes that allow them to pay the loans back.

The Citizens for Responsibility and Ethics in Washington (CREW), portrays the rule-making as little more than a ploy aimed at driving down stock prices of the publicly-traded companies that operate for-profit colleges so that short sellers can cash in.

Wall Street investors have been working with high-ranking education officials to craft regulations, allowing them to net millions of dollars through the short sale of for-profit college stocks.

Rightardia is not sure what CREW is barking about. Student debt is huge and the taxpayer is left holding the bag subsidizing for profit colleges that produce worthless diplomas.

The problem is that these "for profts" are evaluated by the federal government in terms of job placement.

The vast majority o the colleges are not placing the students in positions that allow them to repay their loans to the federal government.

The majority of these colleges need have their certifications for federal student loans pulled.

This will save taxpayers hundreds of $ billions.

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