Top For-profit school closures
The American for-profit schools are facing the toughest time especially now that president Trump proposes to cut down the student loan aid. The majority of private colleges offer flexible degree courses and programs. The schools have been receiving the federal student aid. The number for-profit schools receiving the funds has reduced to 6, 606 a 5.9% drop in the last academic year. These numbers are spelling doom to many schools which are closing down due to lack of enough profits. One academic study revealed that the for-profit school gets almost 70% of their revenue from the federal student aid program.
The current student debt stands at $1.3 trillion making it the 2nd highest debt in the country after mortgage, credit card debt and automobile loans. Almost a tenth or more of the graduates are accused of defaulting the loans due to lack of income years after getting out of various schools. Regulators are now carrying out investigations over the excessively bad outcomes being experienced by students registered in the for-profit schools. So far the scandal has forced many for-profit colleges to close down and sell off their properties after the government stopped the funding.
Why are the top for-profit schools closing down
1. Government policy
Various reasons are forcing the top for-profit school closures, and top on the list is the new government policy. President Trump tenure has come with many changes aiming at lowering the government expenditure on various government agencies. Graduates are now under pressure to repay their student loans, yet the job opportunities are not enough to absorb them. The loan forgiveness policy has been revised, and now the loans will start accruing interest immediately they mature. That means by the time the student graduates, he/she will have a massive debt to repay the state.
The enrollment in the top for-profit schools is going down due to the policy because they are more costly than the state-owned institutions. The systemic issues affecting the for-profit colleges is also another threat that could lead to the closure of more institutions shortly.
2. Economic factors
The rate of informal unemployment in the US has risen in the last few years. According to scholars, when the unemployment rate is high, the enrollment into training schools goes up. The number of students joining colleges also go down when unemployment is low. A majority of jobs available in the US today do not require vocational training. Therefore many people look at the college education as a waste of time and the few who enroll are considering the state-owned institutions.
In summary, the top for-profit schools are currently in their lowest, and there might be more closures coming up in the next academic year. Thus, if you are a student at this institutions you should start working out on a plan to transfer before you become a victim. Many students from the closed down for-profit colleges are stuck in life since some are required to repay the student loans, yet they did not finish their studies.
Top For Profit School Closures
We offer the student loan help services to graduates who are stranded. If you have been affected by the massive closure of the for-profit schools, call us today at (888) 272-9613. We will help you find the legal options available to get a loan relief.
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