AFT Resolution

REGULATION OF FOR-PROFIT COLLEGES

WHEREAS, a college degree represents a gateway to a decent livelihood, and for-profit colleges have grown exponentially because they promise an achievable path to degree completion; and

WHEREAS, at least 70 percent of funding at for-profit colleges is estimated to come from federal sources;[1] and

WHEREAS, an associate degree may cost four times more at a for-profit college than at a comparable public college;[2] and

WHEREAS, 96 percent of students at for-profit colleges take out student loans,[3] and students’ default rate from these colleges is four times higher than from community colleges;[4] and

WHEREAS, students from for-profit institutions suffer from a higher unemployment rate and lower earnings than do comparable students from other schools;[5] and

WHEREAS, the New York Times recently reported that Secretary of Education Betsy DeVos has “effectively killed investigations” by a special team constituted during the Obama administration to police fraudulent activity by for-profit colleges by drastically limiting its mandate; has appointed industry insiders to key positions on the team;[6] and has moved to dismantle gainful employment regulations that cut off funding to low-performing programs and make it easier for defrauded students to wipe out their loans;[7] and

WHEREAS, the AFT has taken a strong position[8] against predatory practices of the for-profit college industry and supports legislation to protect students from deceptive and fraudulent practices[9]:

RESOLVED, that the American Federation of Teachers demands a full and independent investigation of the practices and outcomes of for-profit colleges; and

RESOLVED, that the AFT demands the reinstatement of regulations regarding federal funding of the for-profit college sector, and to easily facilitate loan forgiveness for defrauded students.

 

(2018)