When the last recession hit, millions of people displaced from their jobs returned to school in the hopes of boosting their career prospects. At that time, companies wrapped in the language of technology and disruption marketed themselves as a quick path toward a sure job and a brighter future. Sadly, borrowers are still dealing with the fallout of this fraud today.
There is now evidence that the next chapter in the long story of fraud and abuse by for-profit colleges is only beginning. The employment shock stemming from the COVID pandemic has proven to be even more severe than the job loss associated with the Great Recession. The past year has seen over 81 million first-time claims for unemployment. Over 4 million people are currently long-term unemployed, and estimates indicate that 42 percent of COVID-related job loss will be permanent.
The rise in credentialization amid treacherous economic conditions has created a new wave of anxiety among American workers
In response, a renewed push toward credentialization-a central feature of the post-Great Recession job market-has already begun. Continue reading “Without Strong Consumer Protections, a History of Borrower Harm Will Repeat Itself During the COVID-Era Rise in Credentialization”