With sky high loan rates and even higher drop-out rates, do these colleges educate students or bankrupt them?

Tonight, Tuesday, June 4 at 8:00pm ET

DALLAS -June 3, 2013  This week on "Dan Rather Reports" we take an in-depth look at the business of for-profit colleges.  Schools like ITT Technical Institute, DeVry University and University of Phoenix differ from schools such as Penn State or USC because they actually treat education as a business - teaching students while still turning a profit.  And, while most people may be aware that these colleges are for-profit, what they probably don't know is that most of these profits come from the federal government.  In fact, in 2012 ITT Tech reported revenue of 1.3 billion dollars - more than 1 billion of that came from the taxpayers.

This taxpayer money comes in the form of Pell Grants, money that the Government gives to low income students to help fund a college education, and federal student loans.

"I always said they had a bad business model and the business model was, go out and recruit the poor students. Why? They get the most Pell grants and they get the most loans," Iowa Senator, Tom Harkin told Dan Rather.

Harkin lead a Washington investigation into for-profit colleges and how students, who drop out, or who have to take on high interest personal loans in order to bridge financial gaps, are affected by the expense of a for-profit education.

In the case of ITT Tech, Harkin's investigation uncovered a huge disparity in costs.

"The cost for the associate degree was $48,000.  Two years." Harkin told Rather.  "Not too far away is Des Moines Community College.  Exact same degree, $9,000."

And, students at for-profit colleges default on the Federal loans at twice the rate of those attending traditional colleges.  They are responsible for half the Federal loan defaults while only making up 10% of the student body.

And while these numbers look to stack up against for-profit colleges, those in the industry say that they are offering an important service to high risk students.

Steve Gunderson, President of the Association of Private Sector Colleges and Universities (the organization that lobbies on behalf of the industry) tells Rather, "92% of the students who enroll in our schools are non-traditional students.  Almost every student has multiple barriers to academic success."

But when questioned about high interest rates on the loans that these students must obtain to pay tuition, and whether or not the schools could charge less money, Gunderson says, "What's the school to do? I think you and I would both criticize the school more if they abandoned the student at the 96^th percentile of their academic journey." 

"Dan Rather Reports:  For-Profit Colleges" airs Tuesday, June 4 at 8:00pm ET/5:00 p.m. PT only on AXS TV.

For more information, visit Dan Rather Reports,Dan Rather's Official website, Dan Rather Reports on Facebook and Dan Rather Reports on Twitter.

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CHICAGO - Governor Quinn today issued the following statement regarding Fitch's downgrade of Illinois' credit rating.

"Today's downgrade is no surprise. As I have repeatedly made clear to the General Assembly, this will continue to happen until legislators pass a comprehensive pension reform bill, and put it on my desk.

"Every time the General Assembly misses the deadline, Illinois' credit rating is downgraded, which hurts our economy, wastes taxpayer dollars and shortchanges the education of our children.

"If I could issue an Executive Order to resolve the pension crisis, I would have done it a long time ago. But I cannot act alone. Legislators must send me a bill to get this job done.

"I plan to meet with the Speaker of the House and the Senate President tomorrow.

"I will keep fighting for pension reform until it is the law of the land."

Washington, D.C. - Congressman Dave Loebsack released the following statement on President Obama and Vice President Biden hosting a National Conference on Mental Health at the White House this morning.  The conference brought together mental health advocates, educators, health care providers and others to discuss how they can work together to reduce the stigma of mental illness and help those struggling.

"I, like so many others, have personally felt the effects of mental illness in my family, having grown up with a mother who struggled with mental illness.   I applaud the President for hosting this conference to bring together experts in the field and help lift the stigma that many people associate with mental illnesses. There are too many people struggling with mental illnesses in the shadows and we must continue to work to ensure they get the help they need.

"As a military parent, I strongly believe we must do more to address the mental health needs of our servicemembers and veterans.  As a former educator, I also believe it's particularly important that we provide our young people with the resources and support they need.  That is why I have introduced the Reducing Barriers to Learning Act to increase access to the professionals in our schools that can help students who are struggling in any way."

Congressman Loebsack has been a champion for expanding mental health care coverage.  He has worked on many pieces of legislation, including:

·         Paul Wellstone Mental Health and Addiction Equity Act, which worked to end discrimination against patients seeking treatment for mental illness;

·         Excellence in Mental Health Act, which would improve access to community mental and behavioral health services;

·         Mental Health in Schools Act, which would increase access to mental health services on-site in schools.

He has also led the way as a member of the House Armed Service Committee to ensure that the men and women serving our nation in the military have access to mental health care and suicide prevention resources.  In 2011, his legislation, the Embedded Mental Health Providers for Reserves Act (HR 948) was signed into law as part of the FY 2012 National Defense Authorization Act.

World Heritage Student Exchange Programs is now looking for American families to host high school students from Eurasia. All these exceptional students have received scholarships through the U.S. State Department sponsored Future Leaders Exchange Program (FLEX) Program and will spend an academic year in the U.S. This historic program seeks to foster democracy and values inherent in a free market economy. Your support of these students and this program reinforces the United States' commitment to education and opportunity throughout the world.

World Heritage is currently seeking host families for these well-qualified, bright, motivated and well-screened students coming from Russia, Ukraine, Moldova, Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Turkmenistan, Uzbekistan, Tajikistan. By living with local host families and attending local high schools, FLEX scholarship students acquire an understanding of American values and build on leadership skills. From the beginning of this program, FLEX scholarship students' work together after returning home to share what they have learned while in America and are making a significant difference in their home countries!

To become a host family or find out more about World Heritage and the prestigious FLEX Program, please contact local Area Representative Courtney Wade, at (720)-209-1145 or (866)-939-4111, via email at Courtney@World-Heritage.org or visit www.whhosts.com. World Heritage looks forward to welcoming you to the ranks of host families nationwide contributing to world peace and understanding through student exchange programs.