Oh, wait ...
(Jonathan Chait, "The Diploma Factories," in The New Republic (24 March 2011) at p. 2 (emphases added).)If you have been following your dispatches from the alternative universe of the conservative movement, you have recently learned that the Obama administration has singled out a new industry to crush beneath its jackboot. The victim in question is the for-profit college industry -- Strayer University, ITT Tehc, Kaplan University, and so on -- singled out apparently at random and threatened with onerous new regulation.
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And yet, a closer examination of the facts suggeswts that the existence of profit may not be the decisive factor in the persecution of the latest martyrs of capitalism. A series of exposes in The New York Times last year revealed that the for-profit industry soaks up a vast and growing share of federal college subsidies with little to show for it. The for-profits account for 11 percent of all college students, but 43 percent of federal student loan defaults.
... Since the government guarantees almost every loan regardless of whether the students can pay it back, the institutions have an incentive to sweep in as many students as possible. The General Accounting Office had investigators pose as prospective students applying to 15 major for-profit colleges. All 15 institutions made misleading sales pitches. Legions of disgusted former employees have revealed the industry's deceptive tactics. The largest for-profit, the University of Phoenix, graduates less than 10 percent of its students within ten years.
Worse, most of those students who do graduate acquire little to no added value in the job market. Chefs told the Times [that] they considered graduates of some for-profit culinary schools no better than other entry-level workers. ... Graduates of criminal justice programs, sold on careers in the FBI, wound up getting the same entry-level security guard jobs as applicants with high school diplomas. Graduates and dropouts alike described the crushing tuition debts they had no prospect of repaying.
Responding to the outcry ... the Obama administration proposed to subject the industry to some standards. To be eligible for federal college tuition subsidies, a certain number of an institution's students must repay their loans and a certain number must find employment within their field of study.
[Oh, the horror!!! To receive federal subsidies, an institution must actually do something worth subsidizing!?! Socialism!!! Evil Godless Socialism!!! Where's the birth certificate!?!]
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Obviously, some students who go through for-profit colleges proceed to have successful careers. The trouble is the current business model, in which the schools can profit regardless of whether they help their students. The industry could be made to work if given a regulatory incentive [Anti-Americanism!!! Sacrilege!!! Treason!!!] to improve its students' career prospects, rather than just shanghai as many warm bodies as possible.
The question at hand is whether the federal government should apply some performance metric to its college loans or simply hand out cash willy-nilly. Amazingly, handing out cash willy-nilly has become the conservative position in this debate.