For-profit colleges often advertise and recruit students with a message of hope. That is, these colleges show commercials about hard-working people with children who had better lives and were better able to provide for their children after graduating. In addition, for-profit colleges have gotten in trouble, like DeVry, for advertising false statistics to back up their claims. A recent study conducted by the Center for Responsible Lending examined the student loan burden of college students in Maine. The result? For-profit colleges target lower income students and put them in heavier debt than other colleges.
The study examined students in 39 colleges in Maine: 15 public non-profit colleges, 13 private non-profit colleges, and 11 for-profit colleges. Based on the demographics and debt loads of over 56,000 students that populate those colleges, the study found the following:
- That for-profit colleges disproportionately disadvantaged students who were low-income, female, and African-American. The report revealed that for-profit colleges "targets" low income students based on the large number of federal Pell Grants taken out by these colleges. Further, a significantly higher percentage of African-American and female students attended for-profit colleges as compared to non-profit colleges.
- That a far greater percentage of students at for-profit colleges take out student loans than students from public or private non-profit colleges. The report found that Maine's for-profit colleges are "highly dependent on federal financial aid" and that half of Maine's for-profit colleges relied on taxpayer money for over 70% of their revenues.
- That the median student loan debt of a for-profit college student is more than double that of a student who attended a public college. At a public two-year college, a student had debt of about $11,000, while a student at a two year for-profit college had debt of almost $24,000 .
- That far-fewer for-profit college students are actually able to repay any part of their student loans compared to students from other colleges.
Whitney Barkley-Denney, a legislative counsel for the Center for Responsible Lending, told the associated press that "One of the things we see consistently across the board: Students who attend for-profit colleges are burdened more by debt."
Just like the for-profit colleges in Maine, DeVry induced students into high student loans with promises of better jobs and higher pay. Did you attend take on a high student loan to attend DeVry in the last ten years? Our law firm, Moss Bollinger, has been actively reaching settlements for former DeVry students. We can help determine whether you have a claim. Call us today at (800) 249-1175 for a free consultation or contact us online.