- FOR PROFITS ARE EXPENSIVE.
gher price tags mean high levels of borrowing. Nearly 90 percent of 2012 for-profit graduates had student loans, with the average debt among for-profit college graduates who borrowed reaching nearly $40,000, according to the Institute for College Access & Success.
Those high costs can skyrocket for students who delay graduation, which just 31.5 percent of for-profit students manage to achieve within six years, according to federal data. That's compared with about 57 percent at public institutions and about 66 percent at nonprofit private colleges.
-
FOR PROFIT GRADUATES STRUGGLE TO FIND EMPLOYMENT."Our findings suggest that employers don’t value for-profit credentials any more than public community college credentials," says Cory Koedel, an associate professor at the University of Missouri and co-author on the study. "But for-profit credentials are quite a bit more expensive."
-
FOR PROFIT BORROWERS DEFAULT AT HIGHER RATES. Default rates may stem from the combination of high loan balances and difficulty finding employment, says David Deming, an associate professor of education and economics of Harvard Graduate School of Education and co-author of the NBER study. "To the extent that you have trouble finding a job when you graduate, it affects your ability to pay student loans," he says.
http://www.usnews.com/education/best-colleges/paying-for-college/articles/2014/10/01/3-facts-for-students-to-know-about-for-profit-colleges-and-student-debt