Compared to their peers at other colleges, students attending for-profit institutions -- mostly those classified as inclusive, part-time or two-year -- are falling behind in their debt repayments. Twenty-two percent at for-profit schools were behind on their academic loan payments compared with six percent of students at public institutions, according to a survey by the Federal Reserve.
“The for-profits charge higher prices for the same program as the not-for-profits and have much higher default rates,” said Anthony Carnevale, director of Georgetown University’s Center on Education and the Workforce. “On the other hand, there are lots of for-profits in which the awards, whether they’re certificates or degrees, are worth it. The point being, you need a system that disallows programs that aren’t worth it.”
More often than not, education is worth the money, Carnevale said. However, the higher-education system needs to have more transparency when it comes to how college programs translate to job employment, he said.
This article was provided by Bloomberg News.