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Barbarians in the Ivory Tower

America's for-profit colleges use students in their greedy quest for federal bucks -- then leave them holding the debt.

Worse, subprime degrees from places like ITT and Full Sail typically are held in such low regard that it's difficult for grads to find jobs that pay enough to cover their loans. Nearly one in four for-profit students defaults on his loans within three years of leaving school, more than double the rate of public school students.

But there's nothing like advertising to paper over your shortcomings. So for-profits carpet-bomb the airwaves to make earning a degree seem as easy as downloading an app. Who hasn't seen those late-night TV ads for "college in your PJs," or the Education Connection commercial featuring that rapping, dancing waitress? These ads drive viewers to websites that generate leads for schools' sales staffs, prompting an unending stream of solicitations. And when those leads are exhausted, schools buy lists from companies like QuinStreet, which made its name providing leads to subprime mortgage brokers.

Last month, QuinStreet reached a settlement with 20 state attorneys general who'd accused it of fraud for operating gibill.com. The website was made to look as if it was run by the government to help veterans, but actually it was a lead generator for for-profit colleges.

"The thing that made those lists valuable was the foreknowledge that these were people in dire straits, who were in over their heads and financially desperate, and therefore much more susceptible to a pitch out of the blue," Nassirian says.

The idea is to prey on people's hopes and desires, offering that yellow brick road to the American dream: an education and a better job. Workers are trained to identify emotional weaknesses and exploit them. That's undoubtedly what made Suzanne Lawrence an attractive hire at EDMC. She had a master's in psychology when she went to work for Argosy's online division in Pittsburgh.

"It was really funny because they used a lot of the same skills I was trained to use in grad school as therapeutic skills — like empathy and reflective listening — on the sales floor," Lawrence says. "It was evil and slimy. Your big job was to create trust, make them think you were their friend. The main goal in your first conversation was to find something they called 'the confirmed need,' which was the hot button you were going to push if that person tried to back out on you. Like, 'My dad wasn't really proud of me,' and that's what you write down. You keep that on your file so when you call them and they say, 'I don't want to go,' you say, 'What about your dad? Don't you care about what he thinks anymore?'"

Lawrence worked with more than 2,000 others in a sea of cubicles and an auto-dialer making 500 calls a day. The leads were generally so stale that most calls were no answers, hang-ups or people screaming, "Stop fucking calling me!" Dry-erase scoreboards kept track of everyone's application numbers, horse race–style. Those who sold were loved. Those who didn't were berated, cajoled and threatened, Lawrence says. Managers monitored calls and circled the cubicle bays encouraging workers to "always be closing."

The harsh, boiler-room atmosphere prompted her to make references to Glengarry Glen Ross. No one got it. They were too preoccupied with keeping their jobs.

The pressure prompted all sorts of illicit shenanigans, including falsifying documents, Lawrence says. Salespeople were coached to evade questions about cost and to repeat the lie that "99 percent of our students don't pay anything out-of-pocket to go to school."

She was even instructed to sell online courses to people who didn't own computers. "Tell them to go to the library," her managers would say.

Military disservice

Iraqi War veteran Chris Pantzke was discharged from the Army in 2006 after his convoy was hit by an IED. He suffered from traumatic brain injury, along with post-traumatic stress disorder. The injuries left the former sergeant moody and anxious in closed spaces. Being in a classroom was out of the question.

But a saleswoman for the Art Institute of Pittsburgh, also owned by EDMC, convinced him that her school's online photography program was perfect for his situation.

He struggled immediately, getting migraines from staring at his computer. "There would be several days I'd get up at roughly 8 a.m. and wouldn't go to bed until 4 a.m.," Pantzke says. "That's how bad it was because I was falling so far behind." He punched a hole in the wall next to his laptop and "dishes took flight."

In one online class, the teacher didn't have Internet access for more than a third of the course. Only after pestering three different advisers was Pantzke finally put in touch with the school's Disability Services Office. Despite the recruiters' original promise of specialized help, the Art Institute balked at his request for additional tutoring.

Then Pantzke appeared on PBS' Frontline for a story about for-profit colleges. Shortly before the Frontline piece aired, a vice president contacted Pantzke, asking him to sign a release saying "that I was doing fine and things were going great."

He refused, but soon he noticed a miraculous lift in his academic fortunes. Despite turning in one slapdash assignment he knew wasn't any good, he received an A. "Once I started making waves, I started passing my classes with A's and B's," he says. "I don't know if my grades were true, and it made me doubt my photography ability."

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17 comments
ryanchicago
ryanchicago

See also: Christopher R. Beha's fantastic piece 'Leveling the Field: What I learned from for-profit education' in Harper's Oct. '11. 

Leslie Hope
Leslie Hope

As long as people stay dumb, they will continue to be exploited. I tried to warn one of my students at a local community college not to go through with her plan to enroll in one of these outfits and gave her a legit and less costly alternative, the online program at CSUDH. You know what? She was so pissed at my *negativity* that she dropped my class!

Kara Kobak
Kara Kobak

Agreed. One of the most well written pieces on this topic that I've seen. This is a topic that the public needs to know more about, and hopefully you've informed people of these practices and prevented a bad decision on their part. Kudos to Chris Parker and the LA Weekly team.

Andrew Kay
Andrew Kay

Am pleasantly surprised that LA Weekly, noted for such recent Pulitzer-worthy writings as "10 best LA clubs that are relatively STD free" and "how to be drunk and avoid the DUI checkpoints this weekend," managed to write a thorough, well written article. This should be published in the Times.

alexiscarra
alexiscarra

@emannyv wow thanks for sharing & that is sick. Greed is toxic.

emannyv
emannyv

.@alexiscarra nearly $30 BILLION in taxes wasted, preying on wounded Vets, poor & desperate aspiring students. Congress doesn't care

goodellaa
goodellaa like.author.displayName 1 Like

Everest wanted a ton of information about me before I could ask one question: How much?  Salesman called for weeks and the only answer I got was questions, vague promises and "come in for a tour."  The part of the article that stopped me in my tracks was the role of the United States Congress.  I take home less than $1200 per month and I think anyone in Congress who regards $30 billion dollars as a sum not worth their trouble should be recalled. 

redlocker
redlocker

I was actually recruited by one of the Art Institute colleges back in my time at Santa Monica College. At the last minute, my parents made me decline my signing up with them. Based on what I've heard AND this article, I seem to have dodged a bullet.

 

It's sad that one has little access to colleges that are affordable and actually provide an education for the field one seeks. These for-profit colleges are taking advantage of people who really want to work to change their lives. Education, of all things, has become a minefield that people have to duck and weave through, and that's sad.

 

stay.classy.sd
stay.classy.sd

Its some bullshit that you throw this ridiculous story about how unscrupulous for-profit schools are, and then your story is being sponsored by?  CONCORDE CAREER COLLEGE.  Get out of your glass house, LA WEEKLY!

louispfreely
louispfreely like.author.displayName 1 Like

How do you leave out our own Senator Feinstein?

 

Richard Blum, husband of Sen. Dianne Feinstein (D-CA), is an investor in two for-profit college companies – Career Education Corporation and ITT Educational Services. In her 2010 financial disclosure, Feinstein listed Career Education holdings valued at $2.16 million to $4.55 million. The couple’s stake in ITT Educational Services was valued at $1.45 million to $3.12 million.

 

http://firststreetresearch.cqpress.com/2012/04/16/for-profit-colleges-have-uncounted-government-connections/

 

 

tinica
tinica

 @louispfreely And Career Education Corporation owns the California Culinary Academy, which has faced a class action lawsuit stemming from recruiter misrepresentations of career placement rates. Sixty Minutes did a piece a while back about a similar situation at a C.E.C.- owned fashion school.

 

Nobody tells you that student loans don't even go away with bankruptcy.  

 
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