In Senate hearings, Senator Tom Harkin (D-Iowa) argued that congress is failing to provide needed oversight for $32 billion in taxpayer money “squandered” by companies that run for-profit universities.

“So, student comes in, gets a maximum Pell grant, gets a Stafford Loan. The school gets the Pell Gant, the school gets the loan, the student drops out a year later. The school has the loan, the school has the Pell grant, and the student has the debt around his or her neck. They can’t discharge for bankruptcy, and they don’t have a degree to show for it. And they are worse off then when they began.”

This dismal process affects up to half of the students who enroll in for-profit universities every year:

“Enrolling students, and getting their federal financial aid, is the heart of the business, and in 2010, the report found, the colleges studied had a total of 32,496 recruiters, compared with 3,512 career-services staff members.”

The pending legislation, supported by the Obama administration, will empower the Department of Education with new regulations linking federal dollars to a university’s ability to demonstrate acceptable graduation rates and gainful employment of their students. For these reasons and until these issues are sorted out, will only accept subscriptions from accredited non-profit universities and colleges for the benefit of our student subscribers.