Be Careful of For-Profit Colleges

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Is it safe to take out student loans to go to a for-profit college?

Be Careful of For-Profit Colleges

The number of for-profit colleges (colleges which exist in order to make money for their shareholders) is rising rapidly. Some of these institutions provide a reasonable education, but many of them only pretend to educate students. They actually exist as profit-making businesses, taking tuition money from students and providing almost nothing in return.

Before signing any contract with a for-profit college, check on their graduation rate. Do a lot of people drop out? Can you talk to people who have graduated and are now working in the field the college trained them for?

Be very careful. The way these for-profit colleges make their money is to encourage students to apply for public and private student loans. The college receives the loan money, while the student bears the debt. The student is the one taking all the risk. Most student loan debt cannot be discharged by bankruptcy, and it can follow you all your life, so look very closely at any institution's reputation before signing on that dotted line.



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