The Association has discussed the potential of college closures due to future dynamic changes in the industry.  Therefore, AAEA has urged US colleges to promote sound business model.  However, greed is very difficult to control.  It may lead to products and services overpriced and cheating as well as lies are common strategies which have contributed and caused student loans to increase at an out-of-control rate.  As reported in the media today, recently another for-profit institution with 75K students potentially will have to shut down its operation.  This is not a random event.  The American public will hear more of the same stories in the near future.  As the regulator increases its due-diligent, compliance and audit efforts on higher institutions that have received some sort of government funding such as Pell Grant or student loans, more colleges (for-profit or not-for-profit entities) in the US will be forced to close its operation.  It will start with for-profit colleges followed by other types of institutions as well.

AAEA’s assessments pointed out to about 519 institutions which are in obvious trouble for their liabilities (financial obligation) are much higher than their assets (what they actually own and able to pay).

Please write us what do you guys think?