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| 22 Gainful Employment rule are at public and private
23 nonprofit institutions. In fact, career education 24 programs from notable schools such as Harvard and Johns 25 Hopkins failed the standards outlined by the Gainful 
1 Employment rule. But it is a fact that for-profit 2 schools were disproportionately represented among those 3 that were profiting from taxpayer funds without 4 providing a quality education. In fact, for-profit 5 education companies enroll only 10 percent of students 6 nationwide, but receive 25 percent of Pell Grants and 7 Stafford Loan dollars, and they account for 47 percent 8 of all federal student loan defaults. Further, 9 72 percent of for-profit college graduates earn less 10 than those with just a high school diploma. 11 Higher education should represent a promise 12 at career advancement, a promise of buying a home in a 13 nice neighborhood, of sending your kids to good schools. 14 For many students attending for-profit schools, however, 15 that promise is a pipe dream, not because of their own 16 work ethic, but because of the school's predatory 17 practices. The Department's decision to take action has 18 already brought relief to students. Out of the over 500 19 career education programs flagged under the Gainful 20 Employment rule, over 300 have already been shut down by 21 the institutions offering them. This is significant 22 progress. But, of course, that leaves hundreds of 23 schools with tens of thousands of students with the odds 24 stacked against them that their degree will bring 25 financial success.
1 And simply because a school closes doesn't 2 mean the problems of its former students are over. The 3 closure of ITT Tech, for example, including its 10 Texas 4 campuses saved precious student aid from many students 5 and prevented them and many others from being taken 6 advantage of. And while at the time some appeared to 7 blame students for not being suspicious enough about the 8 schools they attended, the confusion among former ITT 9 Tech students on what rights they have and how to 10 exercise them shows the need for robust enforcement of 11 the Borrowers Defense rule. 12 Currently, students face an extremely slow 13 discharge process. The Department should be putting its 14 weight and energy behind granting individual discharge 15 applications and issuing group discharges wherever 16 justified, not embarking on another set of negotiated 17 rulemaking that will yield unnecessary -- excuse me -- 18 unnecessary uncertainty for students and taxpayers, at 19 best, and rob them of essential protections, at worst. 20 While higher education has, undoubtedly, 21 become business similar to any other, it is still a 22 business that should measure its success by the success 23 of its students -- and everyone has to forgive me for a 24 little bit of paper shuffling. On my way to Dallas this 25 morning, I was asked to share the following story from a
1 woman unable to make it today. Her name is Brittany 2 Prock (phonetic), and she is a Texas native who attended 3 Corinthians Everest online in Brandon campus. She says, 4 "I have faced a real traumatic hardship as a result of 5 this bogus degree and insurmountable debt. I have lost 6 my job. My home was foreclosed on during my studies at 7 Corinthian, but they assured me my degree would improve 8 my circumstances. Corinthian students are looked down 9 upon and rejected by many companies. I know because I 10 have tried to obtain employment in my field of study and 11 have been turned down many times because a company 12 doesn't see Corinthian as an actual accredited 13 university. Colleges and universities won't even look 14 at transcripts from Corinthian because of this bogus 15 accreditation. The credits are no good and will not 16 transfer. These schools have failed me as well as 17 others in making sure we had a clear-cut understanding 18 of what we were signing. I am pissed, because it was 19 the school's responsibility to do so." 20 Again, we strongly oppose the delay, 21 weakening, or elimination of the Borrower Defense and 22 Gainful Employment rules. Respectfully, we call on the 23 Department to, instead, enforce the existing rules and 24 help more students as opposed to excusing predatory 25 colleges and failing programs.
1 Thank you for the opportunity to speak 2 today. 3 MR. MANNING: Thank you. 4 MR. MARTIN: We're going to continue with 5 Mr. John Turnage. 6 MR. TURNAGE: My name is John Turnage, and 7 I want to thank you for allowing me time to express my 8 thoughts and concerns with the Gainful Employment and 9 Borrower Defense to Repayment regulations. 10 As an owner of all or part of eight 11 cosmetology schools located in Oklahoma, Texas, 12 Colorado, Virginia, Maryland, and Florida, which employ 13 over 200 people and educate about 1200 students each 14 year, I am deeply concerned with the aspects of both 15 sets of regulations. Because of that, I'm grateful that 16 the Department is considering a new round of negotiating 17 rulemaking on these two regulations and hope that my 18 concerns can be considered during the process. 19 With respect to the Gainful Employment 20 rule, I recently went through the alternative -- 21 alternate earning appeals process after receiving zone 22 in four of my schools. This whole process was 23 frustrating for me because I knew that we provide our 24 students with a quality educational experience and that 25 they have excellent career outcomes. I knew that we
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