Portland Trib’s take on student loan mess
Not sure what to make of this write-up in the Portland Tribune on the student loan problems. The story oversimplifies, in that it talks about how the mortgage crisis has “infected” the student loan sector. Strictly speaking, I don’t think that’s true.
The student loan industry and some parts of the private education for profit industry created there own problems. It doesn’t take much digging to find a series of nested problems, including outrageous tuition Example: As the article points out, tuition of $45,000 at Western Culinary Institute. As comments following the article note, this qualifies you for a job paying $10-$12 per hour. It doesn’t take much math skill to see that that’s a real problem. Underneath are a number of questionable transactions. For example, how is it that a private lender would ever loan a student $45,000, when the student has no collateral and will graduate and qualify for the low paying jobs? Doesn’t make sense, does it?
David Sugerman
March 6th, 2009 at 8:41 pm
Any new information about the lawsuit?
April 14th, 2009 at 8:03 am
Any updates?
April 14th, 2009 at 8:17 am
Sorry, but no updates given here because doing so disclose confidential information. We will be doing an update for Western Culinary Institute clients by email in the next week or so. If you are on the list, watch your email. If you have not signed up or contacted us, please send me a private email. Please use the subject line WCI or Western. You can use the contact link above.
David Sugerman