For-profit colleges …depend on the federal government to guarantee the student loans that pay for their students to attend. Without loans, most students couldn’t go, and without federal guarantees few lenders would issue student loans.
Particularly risky is Corinthian Colleges Inc. of Santa Ana, California, which gets 90 percent of its revenue from the federal government, according to Barclays Capital. In November, I explained some reasons why I would stay away from Corinthian Colleges shares, such as the fact that many of its students are struggling to pay back their loans.
February 24th, 2011 at 8:37PM
Frontline on PBS is planning to reprise its broadcast on College Inc. See the link on the Faculty to Reclaim Public Education web site at http://umnfaculty.blogspot.com/2010/05/college-inc.html.