Sader Law Firm Blog

A new report released by the National Center for Education Statistics has discovered that 52 percent of student loan borrowers who attended for-profit schools and began repayment in 2003 have defaulted on at least one loan. By comparison, 26 percent of borrowers who attended community colleges and 17 percent who attended four-year schools have defaulted. Students who did not complete their degrees had the highest default rates. Although some for-profit schools help students obtain useful job skills, others have engaged in allegedly fraudulent business practices. However, some for-profit schools have been accused of conducting misleading advertising campaigns that promise students they will obtain high-paying jobs after graduation. These schools allegedly used falsified post-graduate employment statistics to attract more students. In reality, the programs were not accredited and many students did not find jobs after graduating. Only after throwing tens of thousands of dollars into these programs did students realize that…
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