Senior academics in the UCU lecturers' union have said they fear expansion of for-profit universities could damage the reputation of higher education in the UK
Data released by the Department of Education today show that while the official loan-default rate for students of for-profit colleges who entered repayment in 2008 was 11.6 percent, the rate would be more than double that, or 25 percent, under a stricter measurement standard that begins to take effect next year.
About one-quarter of students who took out federal loans to attend for-profit colleges defaulted within three years of starting repayment, according to a new federal analysis.
But ultimately it is the huge private sector, which caters to about 80 percent of Korean students, where the pain is likely to be felt most—and the private providers are already under scrutiny. Some are exaggerating their number of students, covering up financial problems, and hiking student fees to unacceptable levels, says Ms. Yu. "Some are paying professors lower salaries than for primary schoolteachers."
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