Senate Committee Holds Hearing on Student Debt at For-Profit Institutions
June 9, 2011
The United States Senate Committee on Health, Education, Labor, and Pensions (HELP) held a committee hearing on June 7 to discuss the high levels of debt many students face when leaving proprietary institutions.
In his opening remarks, Senator Tom Harkin, the chairman of the committee, compared student loans at for-profit institutions to the sub-prime mortgage crisis. "Instead of packaging these loans into securities and selling them to investors, this time they're passing the debt off to American taxpayers in the form of federally guaranteed student loans," said Harkin. The chairman also took issue with the Department of Education's new gainful employment rules, calling the rules a "modest first step" in addressing student debt.
The HELP committee, with no minority party members present, heard testimony from experts describing how for-profit institutions benefit from student loans and student debt. Sandy Baum, a higher education analyst and consultant, cautioned that the whole student loan program may be at risk because of abuses by bad actors. In addition to the panel of witnesses, Under Secretary Martha Kanter shared the department's view of the current student debt situation, and defended the recently released gainful employment rules.
Witnesses' written testimonies and full video of the hearing can be found on the HELP committee website.
- IRS Releases Final Report on College and University Compliance Project
- NACUBO Seeks Input on Ethics, Fraud, and Controls
- FY13 Implementation Reminder for Independent Institutions
- CAO and CBO Collaborations: Leveraging Institutional Capacity to Impact Effectiveness
August 5-6, 2013
- 2013 Planning and Budgeting Forum
September 16-17, 2013
- WEBCAST: The Higher Education Accounting Forum Online
Wednesday, May 29, 2013 10:00 AM - 5:00 PM ET
- WEBCAST: Improve Your NFP Audit and Accounting Guide IQ
Wednesday, June 26, 2013 1:00 PM ET
- ON-DEMAND: OD: The Cashless and Paperless Business Office
- ON-DEMAND: Affordable Care Act: Implementation Roadmap for Colleges and Universities
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis