Month: August 2010 (Page 2 of 3)

A look at for-profit college EDMC

BusinessWeek has a recent profile on for-profit college EDMC and the involvement of Goldman Sachs. The article is balanced, as they gave EDMC the opportunity to present success stories, but many of the stories are unfortunately similar to others we’ve heard regarding for-profit colleges – too many students paying huge tuition costs, racking up huge student loans, and then not being able to get high-paying jobs they expected (or were sold on by recruiters). One student profiled in the article got a bachelor’s degree in game art and design at EDMC for a cost $70,000 in tuition and fees. After she graduating she got a job that paid $12 an hour recruiting employees for video game companies. She eventually lost that job and now she’s stripping.

We’re seeing more and more lawsuits in this area, and the article points out some lawsuits against EDMC. Changes are also coming from the Obama administration.

On July 23, the Obama Administration proposed restricting—and in extreme cases, cutting off entirely—programs whose graduates end up with the highest debts relative to their salaries and have the most trouble repaying their student loans. EDMC will be affected more than most other for-profit companies because of its focus on “passion” fields, such as art and cooking, rather than more practical accounting or business degrees, says Jeffrey M. Silber, an analyst with BMO Capital Markets in New York. Cooking, fashion, and arts jobs tend to have low starting salaries: A beginning cook, for example, earns an average of $18,000 a year, according to U.S. Bureau of Labor Statistics data, while a two-year culinary degree can cost $40,000 to $50,000. EDMC spokeswoman Jacquelyn P. Muller says Art Institute students tend to earn more, with those holding culinary degrees starting at $28,000.

You have to do your research if you’re thinking of attending one of these schools, and don’t fall for high-pressure sales tactics!

ABC News investigates for-profit colleges

ABC News has been investigating for-profit colleges like University of Phoenix, and they found plenty of evidence of problems similar to other for-profit college scams.

Ads for online schools are all over the Internet, plastered on billboards in subway cars and on television. The University of Phoenix, with nearly 500,000 students, is the biggest for-profit college. But some former students said they were duped into paying big bucks and going deeply in debt by slick and misleading recruiters.

“I don’t want anyone else to be sucked in,” said Melissa Dalmier, 30, of Noble, Ill.

The mother of three had big dreams to be an elementary school teacher, so when she saw ads for the University of Phoenix pop-up on her computer, she e-mailed them for more information. A few minutes later, Dalmier said she got a call from one of the school’s recruiters, who she said told her that enrolling in the associate’s degree in education program at the University of Phoenix would put her on the fast-track to reaching her dream.

“[The recruiter said] they had an agreement with Illinois State Board of Education and that as soon as I finished their program I’d be ready to start working,” she recalled.

Within 15 minutes, Dalmier was enrolled. Since she didn’t have enough money to pay for tuition, she said the recruiter helped her get federal student aid. In total, she took out about $8,000 in federally-guaranteed student loans.

But just a few months after Dalmier started, she said she learned the horrible truth: the degree program she was enrolled in would not qualify her to become a public school teacher upon graduation in Illinois.

“It was an outright lie. A bold faced lie,” she said.

ABC News did its own undercover investigation, and found the same despicable practices. Recruiters also push prospective students to load up on the student loans. Read the rest of the story and check out this video.

Success in Business: Education, Associations and Affiliate Programs Are Important Pieces of the Puzzle

Deciding to enter the business world as a career choice takes some consideration; actually going out and getting a job or starting a company requires some education. There is a wealth of ways to enter the business world. Some people decide to become accountants, managers of companies, or to start a company; education to teach people the necessary skills to be successful in these areas is available in a variety of formats.

Education at a college — community college, traditional college or online university — can offer course work in accounting, business, management or project management. Today attending college even as a non-traditional student — a student who did not enter school directly after high school or is working while attending school — is much easier than it was before. Classes can be taken when the work day is over or classes can be taken online. Gaining additional knowledge to move forward with a business career is attainable for a wider group of people than before.

Another key to entering the business world is making connections with possible clients or contacts that can assist in the ultimate goal. Local and national business groups hold networking events where like-minded business people can meet and exchange contact information. These groups also hold small education seminars on many subjects about how to succeed in business. National business organizations also hold annual conferences where an aspiring business person can meet useful contacts and take intensive courses; these conferences are generally a good mixture of education, business and fun.

For people who want to start a company, another mechanism for entering the business world is through affiliate programs. This method can increase revenues and increase worldwide business contacts and clients. Most of these programs offer education for the business owner on how to be successful with the process.

Each of these techniques can be used separately or combined for complete business plan for success.

More employees facing pay cuts

The high unemployment rate continues to have an adverse affect even on those who still have jobs.

The furloughs that popped up during the recession are being replaced by a highly unusual tactic: actual cuts in pay.

Local and state governments, as well as some companies, are squeezing their employees to work the same amount for less money in cost-saving measures that are often described as a last-ditch effort to avoid layoffs.

A new report on Tuesday showed a slight dip in overall wages and salaries in June, caused partly by employees working fewer hours.

Though average hourly pay is still higher than when the recession began, the new wage rollbacks feed worries that the economy has weakened and could even be at risk of deflation. That is when the prices of goods and assets fall and people withhold spending as they wait for prices to drop further, a familiar idea to those following the recent housing market.

When it comes to public jobs, many of these cuts may be justified, as we’ve seen many examples of inefficiencies in the public sector. In that sense some of these adjustments are good for the overall economy in the long run.

That said, many of these cuts are painful, and this won’t help get the economy moving in the short term.

Building a Better Career Through Online College Programs

Tired of that dead-end job that seems to be leading you nowhere? Tired of seeing your friends take advantage of their education while purchasing a new home or vacationing to some exotic location? Tired of putting money into that rusted out, car that you’ve been nursing along for the last hundred thousand miles?

If you have questions or concerns on the direction your education is taking your career, then it might be time to investigate the possibilities of improving your life with online college programs.

With improvements in teaching and technology over the last decade, there are now thousands of accredited universities across the country that offer online learning. The scope of learning from these institutions teaches everything from business to online Culinary management programs. Other programs that millions of career minded individuals are studying online include: Nursing, Accounting, Engineering, Communications, Computer Science, Meteorology and Information Technology.

Furthering your education can be as easy as spending several night per making a commitment to your education. In order to better prepare oneself in today’s selective job market, those that consider improving their education have an advantage over those that do not.

Be prepared to be overwhelmed by the number of institutions that offer online learning. For those looking to better themselves through education, don’t just start finding your career without some investigation. The internet is a plentiful source of information for these cyber, learning institutions. By spending a few hours perusing the kind of degrees available, and the leaning institutions that offer those degrees, you may be able to narrow your education focus and complete your degree faster.

Spending some time prior to your education experience will help narrow your career options. If you minimize the time pursuing your education, you will be earning the money you think you deserve in a career that you love.

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