Mitt Romney did not attend a for-profit college, and we don't think he took out any student loans. Perhaps that explains why his policies on those issues are so insensitive to the needs of students.

Mitt Romney has just released his plan for educating America’s young people, and it’s wholly consistent with his overall philosophy: Allow money to dominate politics, and everything will work out great. Except that, when it comes to policies on college education, we tried that approach under George W. Bush, and it was a disaster for students and taxpayers.

Specifically, Romney attacks — and pledges to undo — two critical reforms implemented by the Obama Administration: (1) reforming student loans and (2) holding for-profit colleges accountable for waste, fraud, and abuse.

In the recent bad old days, the big firms dominating the student loan business — Sallie Mae, Citigroup, Wells Fargo, JPMorgan Chase, etc. — got paid as if they were lenders, when in fact they were merely loan servicers; it was us taxpayers who actually took the risk of students defaulting on loans. These banks then used our money to hire lobbyists to protect their billions in unwarranted profits. The Obama Administration stood up to them, and Congress, with nowhere left to cut spending, finally ended this absurd giveaway. There’s absolutely no logical reason to restore this massive waste of taxpayer money.  You would only do it if a central principle of your presidency was to hand out gifts to special interests who helped you get elected. Unfortunately it looks like Romney might want to be just that kind of President. JPMorgan Chase, Citigroup, and Wells Fargo employees are ranked numbers 3, 6, and 10 among the top 2012 Romney donors.

Then there’s the issue of the for-profit college sector, whose multiple bad actors have been caught in the act of defrauding our veterans and low-income students with deceptive recruiting practices, and defrauding government with phony reporting.  For-profit colleges have grown rapidly and now account for about 12 percent of students, but their financial footprint is even bigger: With high prices, high dropout rates, and poor job placement, they account for 25 percent of federal financial aid — over $30 billion a year — and 45 percent of student loan defaults.

Romney takes direct aim at the Obama Administration’s “gainful employment” rule — an effort to channel federal student aid to college programs that actually help students learn and get jobs, rather than to programs that leave students deep in debt and ruin their lives. Many of the biggest for-profit schools get 90 percent or more of their revenue from taxpayer funds. They devoted a big chunk of that money to a lobbying and public relations campaign that succeeded in watering down — but not eliminating — the new Obama rule.  But that’s not good enough for Mitt Romney.

Why?  One possibility is that the for-profit college owners are his friends and business associates. On the campaign trail, Romney has pointed to a for-profit college, Florida’s Full Sail University, as an innovative, cost-effective leader in higher education. Never mind that Full Sail has sky-high prices and, at best, a mixed record when it comes to helping students. Romney did not inform voters that his campaign and Super PAC have received nearly $100,000 from Full Sail CEO Bill Heavener and from C. Kevin Landry, chairman of TA Associates, the private equity firm that owns Full Sail.

Nor did Romney tell voters about the private equity fund Solamere Capital, which is run by Mitt’s son Tagg Romney and Spencer Zwick, who also serves as the top fundraiser on the Romney campaign staff.  Solamere was launched with a $10 million investment from Mitt and Ann Romney, and Mitt also has provided strategic advice. Solamere Capital offered its clients a stake in  TA Associates, which owns not just Full Sail but a number of for-profit schools, including troubled Vatterott Colleges, marked by exploitative recruiting practices and high student loan defaults.

That’s not all. The political action committee of the Apollo Group, owner of the largest for-profit education business, the University of Phoenix, has contributed the maximum $5,000 to Romney’s campaign, the company’s only contribution to a 2012 presidential candidate. Goldman Sachs, the number one source of contributions to Romney, owns 41 percent of EDMC, one of the largest for-profit college businesses, currently being sued by the Justice Department and investigated by state attorneys general for fraud.

When a candidate endorses his donors’ businesses, without even telling you they are donors (and business associates), there is legitimate concern that those donors might receive favorable treatment after the candidate is elected.

But give Mitt Romney credit: Now he has told us flat out that, when it comes to higher education policy, he will favor the business interests of his donors — at the expense of students and taxpayers — when he’s elected. Voters will have to decide what to do with that information.

 

Filed under: Elections, Lobbying, Plutocrats

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  • http://www.facebook.com/profile.php?id=688789798 Skip Sunnell

    Without God and an economy that supports ourselves and families, alleged “social reforms” are no more than government slavery of its people. I would remind you that neither President Obama nor the US Government are God..

    • Guest

      I don’t accept your presumption that “God” exists. Therefore, your argument is null and void.

    • http://ingaza.wordpress.com/ the dissenter

      God…yeah. LOL! Look at how much that god of yours is doing for the people of the Middle East.

    • http://www.geistinteractive.com toddgeist

      Skip, you are correct that a strong economy is very important. We must have meaningful jobs that pay a fair wage in order for the people of this country to provide for themselves and their families.

      Whether Pres. Obama is God or not, is completely irrelevant. Under his watch, an economic catastrophe was averted, job losses turned into job gains, we ended two wars, and we finally got Osama Bin Laden. That’s relevant!

  • http://ingaza.wordpress.com/ the dissenter

    Every thing that flows from that cardboard cut out is a disaster, of course. Who (except the zombies in the Right Wing) doesn’t know by now that the guy’s agenda is that of Wall Street and the elites? Having said, I have to point out that when it comes to the decimation of public education, he shares a goal with our illustrious President whose pet project is also the conversion of public schools into for-profit indoctrination camps.

  • Frances in California

    ‘Any of you log-eyed Know-It-Alls care to comment on EDUCATION?!

  • CatKinNY

    The only question now is whether the Democrats will be able to explain this so the simpletons can clearly see that the POTUS eliminated a massive giveaway to the rich and connected and Romey want’s to bring it back. Hopefully, they’ll employ some veterans to expain it – they have been disproportionately victimized by these vampires. Let’s see the GOP calling a bunch of soldiers liberal liars asking for a handout.

  • http://profiles.google.com/joan.c.grim jc grim

    I’m happy to see Romney open up the education discussion in the presidential race. Obama and Arne Duncan, Sec of Education, sole policy difference from the republicans is on vouchers. In fact, Obama has stated that education is one area in which there is bipartisan support. Unfortunately, the support does not extend to experts in learning. Current Dept of Education policy is being set by those with financial interests in policy changes such as: Jeb Bush, Bill Gates, The Walton Foundation, Rupert Murdoch, Joe Klein, Michelle Rhee, Wendy Kopp, Michael Milken, Bill Bennett, Pearson, a host of test publishers, for-profit charter schools, the board of hedge fund managers running Democrats for Education Reform (DFER), and astroturf organizing by Stand for Children (For which Jonah Edelman apologized publicly).

    NONE of Arne Duncan’s mandates in Race to the Top (RttT) are backed by independent, scientific peer review. Value-added scores for high stakes decisions, charter schools, fast-track and online teacher certification, firing teachers and principals, turning schools over to private management companies, are all business plans, not education plans. If you look carefully at who is profiting from these privatization efforts it is not students. I find it disturbing that non educators who profit from education contracts to improve learning are avoiding peer review and critical analysis by experts in the field. Also note, the public schools being forced into these busines plans are not those used in private elite schools the “reformers” send their kids to.

    Obama should be open and honest about his positions on such misguided education policies. No other country in the world is moving towards such wrongheaded school reforms. Duncan is replicating the Chicago reforms on the entire country. For an in depth report of the effects of Duncan’s Renaissance 2010 when CEO of Chicago read the full report here: http://www.commondreams.org/view/2009/05/29-10

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