The Business of Education in America

For over two hundred years the American education system has been based on the right of all its citizens to an education. Through this guiding principle America has led the world to expanded education opportunity for women, oppressed minorities, and populations generally. As the world has come to embrace the American philosophy, America is abandoning this core belief and dividing education into the wealthy, who can afford education, and the rest of the country that will not be able to afford it.

For several decades, American education was in retreat in the technical areas of science and engineering. To address these deficiencies, technical schools in secondary education and for profit colleges came into existence. They encouraged students not inclined to pursue additional education to enter technical fields and pursue higher education. Students that would not become engaged in a process of learning were suddenly involved. Students who could not make passing grades were suddenly making the A’s and B’s in vocational technical courses and for profit technical institutions.

Today, these two areas of education constitute a growing number of successful students actively involved in higher education. Vocational schools and for profit colleges are designed to encourage students to become involved in technical careers, and are often structured without much of the liberal arts training that accompany traditional degrees. There’s been a longstanding disagreement as to whether students should be funneled into specific and very narrow technical educational streams, or weather all students should be forced to obtain a more generalized education designed to move them toward undergraduate degrees and eventually to graduate degrees. Read the rest of this entry »

School Accreditation Is An Important Factor To Consider When Applying

One of the areas that students might want to consider when deciding upon a college or university to attend is whether or not the institution is accredited. Accreditation, which is provided by national and regional government and non-government agencies, is intended to make sure that colleges and universities provide quality education.

Accrediting agencies themselves determine how to evaluate different colleges and universities. The U.S. Department of Education recognizes some of these agencies as being reliable determinants of whether colleges and universities provide the quality education that merits accreditation.

Accreditation, for students, can mean the difference between obtaining scholarships and grants that can help pay for higher education. When institutions are accredited by agencies recognized by the Department of Education as well, students are more likely able to transfer academic credits.

There is, according to the Department of Education, a list of nearly 7,000 institutions of higher education and their programs that are accredited by agencies recognized by the department that students can access online. It makes this information available in a database that students can search. Employers who are looking at the credentials of job candidates might also find it useful. Many companies do not value college degrees that are not earned from accredited institutions of higher learning. Read the rest of this entry »

Student Loan Default Rates on the Rise

Updated statistics released by the U.S. Department of Education show that student loan defaults are rising. According to the latest figures, the default rate for government loans that entered repayment in 2008 is 13.8 percent, up 2 percent from the default rate for federal student loans that entered repayment in 2007.

The current official national student loan default percentage, which stands at 7.0 percent, measures the percentage of borrowers who default on their federal education loans within the first two years of repayment. But when the calculation is expanded to take into account defaults within the first three years of repayment, the national student loan default percentage jumps to13.8 percent.

The New College Grad: Unemployed, in Debt, and Defaulting

Under new rules implemented by the Higher Education Opportunity Act of 2008, the three-year calculation will soon be used as the standard measure of student loan default percentages. Beginning in 2014, colleges and universities whose default percentages rise above 30 percent will lose access to federal financial aid – government-funded grants and education loans – for incoming and existing students.

Current federal regulations cut off a school’s eligibility for federal student aid when the school’s default percentage exceeds 25 percent, but that guideline uses the more forgiving two-year default rate. Officials at the Education Department attribute the rise in student loan defaults to the soft job market and the ballooning number of recent graduates who are finding themselves unemployed and with a pressing need for debt relief. Read the rest of this entry »