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GI Bill

For Profit College, Again

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For-Profit Education
For-Profit Education (Photo credit: Truthout.org)

While state support for United States public higher education dropped 25% from 2000 to 2010, for profit colleges have enjoyed an ever larger slice of public funds. Part of this is due to the increase in enrollment for the for-profit schools: in 1990 only 2% of undergraduate college students were enrolled in such schools, but in 2008-2009 it increased to 11.8%.

However, the for-profit schools get a disproportionate amount of state money in the form of federal money. While having 10% of the students in higher education, they received almost 25% of the Pell Grant money and 25% of the federal student loans.

The for-profit schools are also beneficiaries of the GI Bill: in 2010-2011 $1 billion of the $4.4 billion disbursed by the Department of Veterans Affairs went to just eight such schools. Overall, 37% of the GI Bill money went to for-profit schools.

As such, the for-profit schools are receiving state funds that are disproportionate to their actual enrollments at a time when public schools are having their state support cut. To use the rhetoric of the Tea Party and Republicans, this would seem to be socialism: the state just dumping taxpayer money to benefit a few takers. Moving away from the rhetoric, it does seem to be a point of concern that state money is being moved away from public institutions so as to enable for-profit institutions to profit. Shockingly enough, the Republicans (and most Democrats) are not outraged by this “socialism.”

This state money is the main revenue stream for the for-profits, so they are truly state-supported businesses. They are also successful at making money in this manner: they enjoy an average profit margin of 19%. This enables them to engage in advertising and thus gain more students who enable them to tap ever more into that sweet taxpayer largesse.

The obvious reply is to contend that the for-profit colleges earn these profits while state schools flounder in financial woes. This, it might be claimed, is proof that the for-profit approach is superior to the inherently inferior public approach. However, there are two replies to this.

The first, and most blindingly obvious, is that the for-profit colleges get most of their revenue from the state, thus their success depends on siphoning off taxpayer money into their coffers.

The second is that the for-profit schools often turn out to be disasters for their students, especially when compared to public schools.

While student debt is a serious problem, it is far worse for those who attend for-profit schools. 54% of the students who graduate with a BA from a for-profit school end up with over $30,000 in debt. In contrast, only 12% of public college graduates end up in that dire situation.

The for-profit schools also do poorly in actually placing students in jobs—the public schools do much better. As such, it is hardly a surprise that although students who attended for-profit colleges make up a fraction of the total college student population, they made up 48% of those who defaulted on student loans in 2010.

Given their rhetoric regarding government spending, socialism and people “taking” from the government, one would think that the Republicans would be leading a charge against the for-profit schools. After all, these schools are receiving large sums of public money and doing a poor job. As a faculty member at a public university I can attest to the Republican obsession with making public institutions prove that they are providing a return on the state money they get. I serve on various committees that exist primarily to collect and process assessment data to prove to the state legislature and governor that we are getting results for every penny we receive and our funding is tied to this data. Also not surprisingly, there is also a push to have private sector companies provide expensive tests at the taxpayers’ expense to, somewhat ironically, make sure the taxpayers’ money is being well spent.

However, this does not seem to be the case. Instead, the push by Republicans (and many Democrats) is for even more for-profit education that is funded by the taxpayer. This indicates that the opposition is to “socialism” of the sort where public money goes to  public colleges. The “socialism” that involves redistributing wealth from the taxpayers to the problematic for-profit colleges is apparently just fine.

 

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The Shoddy Treatment of Soldiers

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The Bush administration talks about how important it is to support our troops and then fails to act on its own advice.

First, there were the problems with the medical treatment of wounded soldiers, especially in regards to the horrible conditions at Walter Reed. After the story made the rounds in the media, some action was taken.

Second, there is the matter of the GI Bill. This bill is best known for its role in helping WWII veterans go to college. This bill played a significant role in creating a highly educated work force and this helped America become a super power after the war. Now, as another generation of American soldiers go off to war, the GI Bill is not what it used to be. Part of the problem is that college tuitions are getting rather expensive. Part of the problem is that nothing is being done to help deal with this problem. President Bush actually opposes improving the Bill. His reason is that it would cost too much. He apparently has no problem with dumping billions into Iraq, but draws the line when it comes to actually doing something positive for the Americans who are fighting and bleeding for America. Shame on you, Mr. President.  Oddly enough, John McCain sides with Bush on this issue, thus making me question his integrity and judgment. Morally, we owe the soldiers a debt and helping them with their futures seems a reasonable way to repay them. Further, being purely practical about it, college educated people contribute more to the economy than those without such education. As such, it can be looked upon as a wise investment in America’s future. Of course, some people argue that if the GI bill is too good, people will not re-enlist. While this has a certain degree of practical merit, it does seem to be a morally dubious argument. In a sense, it seems to be arguing that we should rob the veterans of a hope for a better future so they will have no choice but to stay in and continue to fight Bush and Hillary’s war.

Third, there is the matter of the barracks. After a soldier’s father exposed the horrible conditions in certain barracks, steps were finally taken to fix the problem. Once again, this shows just how concerned this administration really is for our troops. Of course, they do worry about image-as soon as the media got on this, action was taken. It is a good thing that Americans like the soldier’s father still care about this country and have the initiative and the courage to take action. Without such people, such mistreatment of our soldiers would continue.

We have a collective moral debt to the people who serve our country. If someone is willing to risk his or her life in service to the nation, then that person should be treated with decency-at the very least. The military and civilian leadership needs to do a better job of ensuring that problems such as those described above are found and fixed. They should not wait until they are forced to take action by the bad publicity-they should take action because it is the right thing to do.

Soldiers

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American soldiers have made great sacrifices for our country and have sometimes have been given the respect and gratitude they have earned. For example, WWII veterans were given parades and the famous GI bill that enabled so many to go to college. Sometimes America treats its soldiers poorly, as shown after WWI and Vietnam.

We are involved in yet another war and America has the chance to do the right thing…or the wrong thing. Although the war in Iraq is currently seen as a bad idea by most Americans, we support our fellow citizens in uniform. Sadly, those who brought us the war and talk so much about its necessity seem all to eager to treat the soldiers poorly. One famous example is the fiasco at Walter Reed. While billions are being dumped only God and George know where, wounded American soldiers were not getting very good care.

Now, there is a new problem. After WWII American veterans received money for college. This was not only the right thing to do, it was also a smart thing to do. An educated population provides the basis for a robust economy and this helped Amercia rise to being a superpower after the war. Now that we have another group of vets coming home, we should offer them the same support. They have fought and bled for America and we owe them. Bush is, of course, reluctant to support funding for this. His reasoning is that it is too expensive. He is quite willing to dump billions into the war and provide massive tax breaks for the rich, yet he is suddenly penny conscious when it comes to doing something for the men and women who are fighting his war. That is small minded, mean, and shows a profound lack of gratitude. Some practical minded people have given another reason to oppose this: excellent college benefits are a great way to recruit, but then people will leave after their tour of duty. In reply, that is a practical matter worth considering but I think it is outweighed by two factors. First, is the moral oblication we have to repay such service. A soldier who goes to Iraq puts his or her life on the line. Bush and his fellows are willing to pay contractors huge amounts of money for similar risks. Logically, we should do something for our soldiers. Second, as the GI bill of WWII showed, the payback in terms of taxes (educated people make more and pay more taxes…except, of course, those who get super rich) will outweigh the cost in the long run.

We should treat our soldiers well because they have earned this. If we do not reward service and show respect for those who provide it, how can we expect people to answer the call in the future? So, let us cut back on rewarding the super rich and reward those who have earned it through their efforts and their blood.

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