More than $30 billion in federal funds – primarily student loans and Pell grants – flow to the for profit college industry each year. Six out of 10 schools receive at least 70% of their revenue from the federal government. The industry has given large donations to members of congress who want to keep the federal dollars flowing to an industry which critics have called a boondoggle and leaves many students with huge amounts of debt they can never repay. The government guarantees the loan when students default. Studies show students at for-profit colleges have significantly higher rates of delinquency and default that their peers at traditional four year universities.
Read more in USA Today here