Unpaid Student Loans
False promises about the value of a college education encourage students to take out large student loans that they can not afford to pay back. Some private colleges, particularly the on-line Universities and trade schools, tell their prospective students that they will have a good job when they graduate, when in fact, few graduate and the pay scale of the jobs available to the graduate is not sufficient to cover the expense of the student loan.
If you have an unpaid student loan, because the college recruiter did not tell you the truth about jobs, call Behrend & Ernsberger at (412) 391-2515.
False promises, are so common that the United States General Accounting Office (GAO) did an undercover investigation of 15 Private for-profit colleges. According to the GAO every college investigated used deceptive practices:
“All 15 colleges made some type of deceptive or otherwise questionable statement to undercover applicants, such as misrepresenting the applicant’s likely salary after graduation and not providing clear information about the college’s graduation rate." The GAO report can be seen here
The General Accounting Office explains that all schools, that admit students with federal student loans, must tell you their accreditation information, and give you their completion rate or graduation rate. And, they must tell it to you straight.
On July 30, 2012, the United States Senate Health, Education, Labor, and Pension Committee issued a report about for-profit educational institutions. Senator Tom Harkin referred to for-profit education as an "abject failure." One reason for his statement is that, on average, for profit institutions "spend 17 percent of their budgets on instruction, 42 percent on marketing and profit, and 41 percent on other expenses, including executive compensation packages that run as high as $40 million a year." See Pittsburgh Post-Gazette, July 31, 2012.
If you have an unpaid student loan and your college recruiter told you that their graduates get good high paying jobs and you have found that it isn’t so, call Behrend & Ernsberger at (412) 391-2515