Student Loan Fraud (Part I) - page 2

by TheCommuter Asst. Admin

Financial aid scams are on the rise in the United States during a time when record numbers of first-time freshmen are attending college and nontraditional students are returning to school. Due to the massive increase in the... Read More


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    Quote from ctmed
    My question is, are these places considered amongst the medical community and HR the same way an IT degree from University of Phoenix or ITT tech is considered in IT? Would you be laughed out of an interview?
    ITT Tech is one of the schools that actually offers an associates degree nursing program in many cities across the U.S.

    The school with the $132,000 tuition does not have the most stellar local reputation. In addition, anyone who finances $132k is going to be stuck with a $1,500+ monthly student loan for many years to come.
  2. 0
    Quote from TheCommuter
    ITT Tech is one of the schools that actually offers an associates degree nursing program in many cities across the U.S.

    The school with the $132,000 tuition does not have the most stellar local reputation. In addition, anyone who finances $132k is going to be stuck with a $1,500+ monthly student loan for many years to come.
    Wow.....why on earth would anyone pay that????????? robbery.
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    There is definitely a trend at the CC...they attend the first 14 days of classes to get their check and then they drop. Parking is where you can actually see it happen. The lots are full the first 2 weeks, then suddenly after checks are disbursed parking isn't an issue. It is used and abused like every other government assistance.
    Journee2 and Nurse2b209 like this.
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    And this is why my cc doesn't disperse student loan money until the thirtieth class day!

    Previously at my 4 year university, the school would make sure students had there funds at least a week before classes started so they could do things like buy books and supplies and pay for living expenses.

    Then I came to community college. The rules are so much more strict, and I couldn't figure out why....WHY make students wait weeks to get their money? I suppose it's because fraud is so much more prevalent at CCs.
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    Quote from Esme12
    Wow.....why on earth would anyone pay that????????? robbery.
    My friend and her husband were saddled with 250k EACH in student loans....

    I am glad I was fortunate to not have to take student loans out.
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    Quote from Stephalump
    I suppose it's because fraud is so much more prevalent at CCs.
    Financial aid fraud actually is more prevalent at community colleges due to open enrollment because they must admit anyone who wants to attend.

    In the area where I live, even people without high school diplomas or GEDs can get admitted into the local community college if the counselors at the school have determined that the prospective students can somehow benefit from schooling.
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    Sad thing is about these expensive for-profits, is there are many who would actually consider them even with a sticker shock price.

    Let's say you are not really academically inclined and the local CCs will not take you without having to spend 1-2 years sloshing through remedial courses. Let's say also you are trapped in fast food, retail, or some other really low paid job you absolutely hate and fear of a landlord bamming on your door threatening to evict you is a monthly concern.

    Now, nurses (and other allied health areas) may have little (and big) issues and we read the rants daily on allnurses, but I gaurantee you even a RN in a garbage facility in the sticks gets tons more respect, benefits, and pay than a whopper flopper or a housekeeper. I could see some who would pay 150k and the 1,500 a month loan repayments to get out of that situtation - even if that is half thier check! For some, it is more of a bribe they have to pay to move up a social class from the lower working class to the lower middle class. Now, if there are actual jobs available to pay that student loan... Well, at least you do not get thrown in jail anymore for being in debt. Of course, good luck if you plan on getting a higher degree one day or going NP or CRNA (not that everyone would want to do that). Those schools would laugh at your Master's/ Batchelor's from wherever unless you had tons of experience and the good lord himself as recommendation!

    I am also glad some of the above posters have brought up a good point. I took out a student loan for COTA school. I do not even see the check. it goes directly to the institution. I think they may have recently made changes many places since all those fraud cases came about. After all, it is in the school's best interest. If you have folks only attending a wek or so then marching off with the big bucks, the school is not getting paid. Regardless of how overpriced that school may be.
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    Quote from TheCommuter
    Financial aid fraud actually is more prevalent at community colleges due to open enrollment because they must admit anyone who wants to attend.

    In the area where I live, even people without high school diplomas or GEDs can get admitted into the local community college if the counselors at the school have determined that the prospective students can somehow benefit from schooling.
    I do not think that is a bad thing. I think it is more an indication of the relative worthlessness of a high school diploma. CCs are now having to offer classes on 8th grade reading and basic math!

    The only thing I see is many of these counselors in places are not really educated on job availability out in the field. The for-profits really do not care, either. I read somewhere UoP gets commission based on how many heads they get in.

    I think personally, many counselors should be more educated and do research on the actual job market instead of reading Yahoo content articles. I do not think lack of a GED or diploma should be a big issue. But, there are plenty of nice union jobs like electrician, plumber, etc that should be put forward as opposed to pushing worthless programs like IT or interior design. But then again, this research should fall on the student as well. If I am paying thousands, I durn well want my money's worth and really do not want to be a CNA and owe that kind of money.
    TheCommuter likes this.
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    Quote from ctmed
    Let's say you are not really academically inclined and the local CCs will not take you without having to spend 1-2 years sloshing through remedial courses. Let's say also you are trapped in fast food, retail, or some other really low paid job you absolutely hate and fear of a landlord bamming on your door threatening to evict you is a monthly concern.
    What a coincidence. . .I posted on this issue earlier this year:
    Quote from TheCommuter
    My feelings on for-profit education at vocational schools are mixed. While they do serve a purpose, a higher-quality end result can be obtained at a more reasonable price at most community colleges or state universities.

    However, these types of schools are marketed to appeal to present-oriented, impulsive students who are into instant gratification: "I can't go to school for two, three, or four years." "The other schools require too much testing." "What are my options as I see them today?"

    Since these for-profit schools are marketed toward impulsive people who might not research the contract that they are about to enter, the best way to reach these people is through vivid advertising. Exciting commercials can seal the deal and get potential students to take out tens of thousands of dollars in student loans for dubious 'careers.'

    We will use a culinary arts degree as an example. While the local community college offers this degree at a very affordable cost, there are roadblocks that might prevent the underprepared student from getting to the end result in a reasonable amount of time. This student has failed the placement exam, so they must complete a handful of remedial (a.k.a. developmental) reading and math classes before they are even allowed to take English comp or college algebra. Remedial classes can add a year or more onto your studies, depending on how far behind your skills are. There might also be prerequisites that must be completed with a satisfactory grade such as food science, technical writing, or business applications. An unprepared student from a disadvantaged background might see these molehills as thunderous mountains and basically abandon the community college route.

    However, the for-profit trade school is also offering a culinary arts degree without the red tape. For $10,000 more than it would cost at the local community college, this same underprepared student can start classes immediately with no remedial classes, prerequisites, entrance exams, and be able to finish in 12 months or less. What sounds more appealing to the person from the disadvantaged background? Years at a community college, or months at a trade school? "What are my options as I see them today?"

    People wonder why anyone would choose this route, but all you need to do is walk one mile in the shoes of someone who views community colleges and universities as bureaucratic, foreign, and alien.
    mz.snuggly1 and ctmed like this.
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    Quote from That Guy
    My friend and her husband were saddled with 250k EACH in student loans....

    I am glad I was fortunate to not have to take student loans out.
    To be a nurse? even to be an MD....how do they expect to make a payment in excess of $2,000.00 a month EACH just to pay the loan payment I'm speechless.
    ctmed likes this.


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