Hostile Takeover Target: Private Career Colleges

Career College Central Summary:

  • Education Secretary Arne Duncan acknowledges that the “majority of career colleges play a vital role in training our workforce to be globally competitive.”
  • Yet he insists that students must be protected from debt he says is foisted on them by a relative handful of bad actors.
  • Rather than hold those select institutions accountable through existing laws, since 2010 Duncan has been attempting to use his department to gain control of the private for-profit career college sector, which is the fastest growing nationwide increasing from 200,000 students in the late 1980s to 2 million as of 2010 (pp. 2, 5, 7-8).
  • This isn’t the Obama administration’s first attempted takeover of higher education.
  • Thanks to an Obamacare provision the U.S. Department of Education took over direct lending to students.
  • Duncan insisted that the feds would be more efficient and cost-effective than private lenders, but costs actually went up.
  • In recent years the Obama administration has also pushed interest rate freezes on federal student loans, which have done nothing to make a college education more affordable.
  • The administration’s latest takeover scheme is attempting to impose onerous regulations on all private for-profit career colleges.

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