Home > Uncategorized > A Predictable Meltdown Results When a Former Investor in For-Profit Schools Oversees the Dismantling of Regulations Governing Those Schools

A Predictable Meltdown Results When a Former Investor in For-Profit Schools Oversees the Dismantling of Regulations Governing Those Schools

March 8, 2019

NYTimes reporters Stacy Cowley and Erica Green describe the rapid meltdown of a college chain that resulted when Betsy DeVos aggressively deregulated post secondary schools in the name of giving “new life” to an industry that was “on its heels” during the Obama administration. And why was it on its heels? Because, as the Obama administration’s Department of Education recognized, the profiteers who operated private (mostly proprietary) colleges misled students who went deeply in debt to get the education they understood they needed to be successful in the global economy. The students never got their degrees because the colleges did not have the wherewithal to provide the education they promised. When the Obama administration fined the colleges to help pay back either the students’ personal loans or the government who provided loans for the schools the profiteering colleges either went out of business or transferred their ownership to a different entity. The winners in all of this were the investors and the college administrators who received unseemly high salaries. The losers were the students who hoped to better themselves only to find themselves deep in debt. I am certain that the laissez faire capitalists will shrug their shoulders and say that’s the way the market works: caveat emptor! One can only hope that every disaffected student will at least learn that the policy of deregulation— UNDER-governing— is the problem and not the government itself. But that unit was probably not included in the introductory economics courses offered.

Advertisements
%d bloggers like this: