Here’s an excerpt from an interesting interview with Barmak Nassarian, associate executive director for external relations and a lobbyist with the American Association of Collegiate Registrars and Admissions Officers (AACRAO), from Frontline’s “College, Inc.” program. The section on loan defaults –also discussed in the Barron’s article I posted yesterday–is particularly revealing, I think. In what follows, Nassarian is discussing quality and regulation.
Q: So we’re in the middle of a recession. Record demand for postsecondary education, am I right? And just the massive growth of for-profits. I mean, those would be the sort of saving features of what we’re seeing now.
Well, there’s one important additional dimension that makes all of that toxic, which I have a hard time communicating to people without being a little sort of colorful.
We live in a society that most transactions for goods and services involve the profit motive, and we’re used to that. There’s nothing wrong with it. But we’re also living in an advanced post-industrialist society where there are fundamental assumptions about consumer protection that we all walk around with. I walked into this room without examining the building, without any engineering drawings, on the assumptions that surely it was somebody’s job to make sure it’s not going to collapse on my head, despite the fact that it might have been built by a for-profit builder who might have had profit maximization as their primary incentive. Continue reading