The United States is facing a debt crisis of epic proportions, but it may not be in the area consumers would suspect. Huffington Post cites statistics from the Federal Reserve Bank of New York that show student debt has surpassed credit card debt in this country. It is no wonder the media is littered with reports of student debt defaults today. To make matters worse, the source of student debt is no longer community colleges and four-year public institutions. Instead, that debt goes directly to for-profit schools that charge students high tuition rates but deliver little in return.
The numbers are concerning, considering that community colleges – the schools President Obama has touted as the training grounds for our future workforce – are scrambling to make ends meet. As more people head to these public institutions hoping to get applicable training for recession-proof, lucrative careers, the schools are finding themselves without the necessary resources to teach everyone who wants to be educated. Services and programs have been cut, and waitlists for popular courses are becoming longer and longer. State and federal funding are slim at these schools today.
This video outlines financial aid for community college students.
For-Profits Enjoy Prosperity
This is not the case with for-profit colleges. Institutions like the University of Phoenix and ITT Technical Institute are enjoying significant prosperity these days as they take a