From Tyler Durden at zerohedge.com, via theburningplatform.com:
In “Who Is Stoking The Trillion Dollar Student Debt Bubble?,” we highlighted the rather disconcerting fact that in 2014, the US government gave out some $16 billion in loans to students attending colleges that graduated fewer than a third of their students after six years.
As WSJ suggested, accrediting agencies are part of the problem. “One problem may be that the accreditation game suffers from similar conflicts of interest as those which caused ratings agencies like Moody’s and S&P to rate subprime-ridden MBS triple-A in the lead-up to the crisis,” we argued.
In the end, the disbursal of billions in federal aid to students attending schools where they’re unlikely to graduate is, like lending to students that attend for-profit colleges that the government is fully aware will likely one day be shut down, just another example of the misappropriation of taxpayer funds.
Well, if you needed further evidence of this, look no further than the Pell grant program.
As NBC reminds us, “Pell grants are given to low-income families and, unlike student loans, do not need to be paid back – [they] are the costliest education initiative in the nation.”
Well, the costliest until the across-the-board debt forgiveness, but in any event, it turns out that despite the fact that taxpayers have dumped $300 billion into the program since 2000, “the government keeps no official tally of what proportion of those who receive the grants end up getting degrees.”
To continue reading: Government Gives Away Billions To Students