Thread: Stimulus? Millions for massage schools...

For-profit colleges reap big benefit from stimulus

AJC exclusive: Grants help college companies as public schools’ tuition rises

By Jeremy Redmon and John Perry

Massage and beauty schools, online universities and other for-profit colleges in Georgia and across the nation are cashing in on federal stimulus spending, collecting $2.2 billion in tuition grants for low-income students, public records show.

That represents nearly a quarter of the stimulus money spent on these grants to date.

The taxpayer-funded grants are flowing to profit-making schools as the government is seeking to revise how those schools qualify for federal aid, partly because of concerns over how some saddle their students with substantial debt. The effort follows a federal report that cited abuses in the recruiting practices of some of the schools.

Georgia’s public colleges, meanwhile, are grappling with deep state budget cuts that are expected to increase tuition costs and class sizes. Some state officials would like to see more stimulus money come to those schools.

“I would be delighted to have this money going to the public sector because I know of the need and the lack of state funds that we have been able to appropriate,â€

Quote:
"The American Recovery and Reinvestment Act includes $17.1 billion in funding for Pell grants for low-income students. About $9.8 billion has been distributed so far. Here are the top five recipients of that taxpayer money.

1. University of Phoenix, $484.2 million

2. City University of New York Inc., $246.5 million

3. University of Puerto Rico, $98.3 million

4. Inter American University of Puerto Rico, $89.2 million

5. State University of New York, $88.2 million"

What an inordinately large percentage of funds all going to little Puerto Rico! Together with a sudden push in the U.S. Congress to try to make it a state this year. And large amounts of funds going to just two universities in New York, the overwhelming amount to New York City.