Will the student loan debt become our next mortgage crisis?

Will the student loan debt become our next mortgage crisis?

Program Integrity; “Gainful Employment” proposed rule AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Secretary proposes to amend the Student Assistance General Provisions to establish measures for determining whether certain postsecondary educational programs lead to gainful employment in recognized occupations, and the conditions under which these educational programs remain eligible for the student financial assistance programs authorized under title IV of the Higher Education Act of 1965, as amended (HEA). http://www2.ed.gov/legislation/FedRegister/proprule/2010-3/072610a.html http://www.regulations.gov/search/Regs/home.html#home

In the Wall Street Journal the week of September 20, 2010 Corinthian Colleges, Inc. | www.cci.edu has taken out full page advertisements daily regarding the proposed rule for “Gainful Employment” which provides provisions to establish measures on postsecondary educational programs. Go to: http://www.mycareercounts.org/issue.shtml to learn more.

Please take action and call the House Representatives and the Senators in your States – the ads say “We don’t Count” which is distorted – As these students do count! Again, the people featured in the advertisements DO Count! (There is a box for you to click on ‘my career counts’ website)

What is a bigger issue is the For Profit and Non Profit high education schools offering people money to go to school, lowering the grade expectations so that they can pass (called grade inflation) and passing people that are ill-equipped with the needed skills to do the work and upon graduation are saddled with huge government backed school loans that they still have to pay regardless if they learned anything or not. [Or not pay]

Employers are hiring these folks who have 70% of the skill sets required to do the job and then the employer pays to re-train these folks. Is it a positive/negative thing for our society and our local communities that these costs are passed on to the employer? What are the solutions to these issues?

Require that the person taking out the postsecondary loan and entering a program can pass basic assessment tests in reading, comprehension, writing, (grammar) and math tests. Require that grade inflation is not in affect at these schools and the same rule for passing courses applies to everyone regardless of their status including those on the GI bill.

That an ‘A’ is a true ‘A’ and has not been lowered to pass someone so they can take the next class or get their education for free. Raise the bar for learning so that when people graduate from a university with a postsecondary degree that the degree actually is worth the money that they are paying for the degree and the people graduating actually increase their competency and skill levels so they can compete in the workforce.

Prevent university administration departments from squeezing the professors to push folks through the program. Make it tough so these people learn how to get better at learning so we can compete as a nation with our skills and competency levels in our jobs world-wide. We are not helping people by taking their money and not providing them with the skills required to compete in the workforce and a degree that is actually not worth the paper it is written on.

Author Image

About Linda Savanauskas

An accomplished talent management professional with experience in curriculum design, development of learning strategies, and professional skills development training programs for the workplace. Collaboration in training programs includes small and medium size businesses (SMB) to larger organizations from Raleigh to Charlotte, North Carolina. Virtual instructor led training can be offered to any location.