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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ALLIANCE, OH (06/03/2013)(readMedia)-- Courtney Wachal, a junior from Bettendorf, IA was named to the Dean's List for the spring 2013 semester at the University of Mount Union.

To be eligible for Dean's List, students must have completed at least 12 credit hours of traditionally graded coursework while achieving a grade point average of 3.550 or better with no grade below a B.

University of Mount Union

The University of Mount Union, founded in 1846, is a four-year, private institution grounded in the liberal arts tradition. The University is located in Alliance, OH, 80 miles of both Cleveland and Pittsburgh. Mount Union offers an array of broad-based and career-specific undergraduate and graduate programs to its 2,200 students who experience outstanding opportunities for success after graduation. Ranked as one of America's Best Colleges by U.S. News & World Report, the University is committed to providing a student-centered approach and an exceptional educational experience. For more information, visit www.mountunion.edu.

Des Moines, IA - Recognition for outstanding academic achievement has been given to the following Grand View University students for the 2013 spring semester:

Derek Fulton of Bettendorf, Iowa and Aaron Warlop of Rock Island, Illinois.

The students are named to the Dean's List for earning a grade point average of 3.5 or better on a 4.0 scale while carrying at least 12 hours of classes.

Grand View University, with an enrollment of approximately 2,300 students, is an independent, liberal arts college affiliated with the Evangelical Lutheran Church in America.

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SPRINGFIELD - Governor Pat Quinn released the following statement on the House passage of Senate Bill 1625, one of his 2013 State of the State proposals to increase safety in Illinois' schools in response to recent school shooting incidents in other states.

Following the deadly school shooting in Newtown, Conn. in December of 2012, Governor Quinn convened top experts from across the state for a School Safety Summit to develop short and long-term actions that further safeguard schools. This legislation, proposed by the Governor, will require Illinois schools to hold active safety drills with local law enforcement to ensure they are as prepared as possible.

"I commend the members of the Illinois House of Representatives who today voted to implement new safety precautions throughout all Illinois schools as I proposed in my State of the State address.

"In the event of an emergency situation where a gun is involved, precious lives can be saved by knowing what to do, where to go and how to respond.

"Our schools can never be too prepared.  By working with local law enforcement, these safety drills will ensure that every Illinois school is as prepared as possible if, perish the thought, the worst should occur.

"I thank the members of the General Assembly for passing this important measure that will improve school safety, and I look forward to signing it into law."