Feds Shocked to Find "Gambling" at For-Profit Universities

Most students at for-profit colleges, such as the University of Phoenix, don't fully repay their student loans. The schools tend not to care, as they get all the money around the time students register. Today's Washington Post story on the issue fairly reports the Department of Education announcement of "shock" over this "gambling" at higher ed's version of Cafe Americain. Considering WaPo's Kaplan arm, a prime for-profit offender, is responsible for over 60% of the newspaper's revenue, running the story shows at least some journalistic integrity.

While the for-profit schools are under the federal microscope, what's equally outrageous is how the supposedly non-profit universities more or less walked away from their student loan scams, provided via Sallie Mae. These acts of theft were revealed around the time of the Bear-Lehman collapse, and were promptly swept under the rug.

What no one bothers to explain is that, for over a decade, college tuition and expenses have quadrupled the cost of inflation. Where does the money go? Do you really think it benefits the average college student? Take a look at perks for top profs and administrators at a local institute of higher learning sometime. Or the salaries of big-time college coaches and their staffs.