3 years ago
All I got from AIU was debt. For-profit colleges l...
All I got from AIU was debt. For-profit colleges like AIU want students to max out the amount of money they take out in loans, so they can make more money off each student. I took out a private loan in 2007 for $7600. I've been making payments for almost 10 years. I've paid $11,600 toward this loan and I still owe $5700 on it. I found that in 2009, 2010, 2011 and some of 2012, all of my payments went toward interest only. I have now refinanced this loan at a fixed rate of 5% to get away from Navient, formerly Sallie Mae. Sallie Mae and Career Education Corporation, owner of AIU, conspired to offer some student predatory loans, even though they knew the chances of these students defaulting on the loans were high.
According to the New York Times, "New details unsealed last month in the state lawsuits against Navient shed light on how Sallie Mae used private subprime loans some of which it expected to default at rates as high as 92 percent as a tool to build its business relationships with colleges and universities across the country. From the outset, the lender knew that many borrowers would be unable to repay, government lawyers say, but it still made the loans, ensnaring students in debt traps that have dogged them for more than a decade."
Schools like AIU exist to transfer money from poor people to rich people. Poor people take out loans that are not dischargeable in bankruptcy, so the debt stays with them forever. Spending a lot of money on a degree does not mean students get a job that will enable them to pay back their loan. On the contrary, the AIU degree made your life worse. Students have a ton of debt and their job prospects are no better than if they didn't have the degree. I got a 4-year accounting degree from AIU in 2008 that has been totally worthless to me. I do the same kind of support staff work I did before I attended AIU. I do not do any accounting work. I work in Accounts Payable. I pay invoices. You did not need an expensive 4-year degree for that.
Employers don't respect degrees from for-profit schools because they know the degrees are worthless. For-profit schools short change students on education, so they can keep the money for marketing and outrageous salaries for the administrative staff. I read somewhere that n 2011, the President of AIU had a salary of over $4 million dollars. $4 million dollars so you can scam well-being students into taking on debt for a worthless piece of paper.
For-profit schools should not be eligible to receive student loan proceeds. That would shut them down. 10% of college students attend for-profit schools. But 44% of students who default on loans attended a for-profit school. 99% of fraud allegations are against for-profit schools. These schools are predators. Shut them down.