For-profit colleges (University of Phoenix, Kaplan, Corinthian, Le Cordon Bleu, etc.) are in a tizzy over new rules in the works at the Department of Education. In order to be eligible for federal student aid programs—which make up the bulk of for-profit colleges’ revenues—they’re now required to prove that they prepare students for “gainful employment in a recognized occupation.”
The Dept. of Ed. will determine this by looking at graduates’ debt to income ratios. In other words, colleges will have to answer the following questions: how much debt did your students take on and how much are they making now?
If you received training from a for-profit career college or university, Marketplace wants to hear about your experience. Is your debt high and your income low? Or did your training lead you to exactly the kind of wages you had hoped for?
Tell us your story.
I graduated from the University of Phoenix (UOP) and I would say that, yes, my degree led to the wages I expected to earn. When I got my degree I also received a increase in pay because of the achievement. In addition, the fact that I attended, or was attending UOP, peaked the interest of my employer, which helped me get the opportunity to land the job in the first place.
These days it is not hard to graduate with high student loan debt. Tuition has increased greatly over the last ten years while incomes have been flat, or decreased slightly. Therefore, I would expect the debt to income ratios to increase. As the old political slogan goes, “It’s the economy stupid.”