At the end of last year, BPE had 1,175 recruiters responsible for drumming up business. The company plainly discloses in its annual report that it sets tuition (currently $7,860 a year) to stay within the loan limits of Title IV, the regulations governing financial aid. One Ashford recruiter Eisman quotes is more blunt: “They conveniently price tuition at the exact amount a student can qualify for in federal loan money. If a person has money available for school, Ashford finds a way to go after them. … It’s a boiler room, selling education to people who really don’t want it.”How many recruiters does your school have? I bet you don't need a comma to write it down.
This situation gets compared to the sub-prime mortgage crisis. Details are in the article, but one estimate of the loan defaults by 2020 puts the total in the hundreds of billions.