For-Profit College Student Loans And How To Avoid Student DebtsBy Jules Catch, UniversityHerald Reporter
For-profit colleges appeal to many students, with all the perks that it brings. Many for-profit institutions offer degrees that are offered in traditional universities, but with the added convenience of online, at-your-own-pace study. Others offer working degrees or certificates that can be acquired in faster time compared to traditional college. This and many other things appeal to many who apply in these schools.
What many students don't know, however, is that not all for-profit universities are actually helpful in their pursuit of building a great career. Some of them have students who don't graduate but are loaded with debt.
Sandy Baum, senior fellow at the Income and Benefits Policy Center at the Urban Institute, told PBS News that on average, people who go to for-profit institutions are more likely to borrow and not be able to repay their loans.
Danielle Lopez, who made student loans to study at the Art Institute of New York, is proof of the problem. She says the school promised her a lot, like helping her get a job after studying, but claims the school didn't fulfill it. She only ended up with $25,000 in debt and a problem in finding a job.
To help you avoid making unnecessary student loans in relation to studying at for-profit colleges, here are some tips from CBS.
Consider community colleges instead of a for-profit program
Community colleges offer hundreds of courses at a lower cost compared to other institutions. Some of these colleges offer aid without the need for loans.
Check post-graduate earnings of students
Look into the average income students from each school receive. According to the Education Department, community college graduates earn more than graduates of for-profit schools.
Check average debt load of students
Compare the average debt a student has after graduating. Colleges that graduate students with lower student debt amounts should be your choice.
Check if the college meets gainful employment standards.
Colleges that graduate students with higher incomes are a better choice compared to colleges that produce low-income or unemployed graduates. Check if the government has flagged a college for underperforming, and avoid applying there.