Search the Archive

Special Report (Trade Schools) #241520

CBS Evening News for Monday, Aug 18, 1975
View other clips in this broadcast →

Material supplied by VTNA may be used for educational analysis or research only. Any editing, reproduction, publication, rebroadcast, public showing or public display may be prohibited by copyright laws.

(Studio) Federal government underwrites loans for trade school tuition.
REPORTER: Roger Mudd

(No location given) Department of Health, Education and Welfare gives loans to students enrolled in accredited colleges and vocational schools, known as proprietary schools. McMahon College television commercial shown. Students have 15 mos. to start repaying loan after finishing school or dropping out. Bank gets extra 3% interest from government; government will pick up tab if student defaults. McMahon College went bankrupt. 95% washout rate. Students refuse to pay for courses they couldn't finish; so taxpayer stuck with bill. 5 million students have taken loans. 14% national default rate; 60% in proprietary schools. Banks and schools gained money.
REPORTER: Sharron Lovejoy

(Texas) Texas chain of schools controlled by Carl Whaling. Refuses to talk about schools or student loans. Whaling salesmen recruited 6000 students over 4 years, most from Rio Grande valley. [Connie STANLEY - says had to work.] [Margie FONTANA - says salesman made it easy.] [STANLEY - says salesman said no money needed down.] Loan applications run through HEW computer. Loans from banks forwarded to schools, not students. Students never saw checks. At Whaling school, McAllen Bus. School, students found outdated books and business equipment.
REPORTER: Sharron Lovejoy

(Texas) [Ex-McAllen student Margie FONTANA - says we were guaranteed jobs.] [Ex-McAllen student Connie STANLEY - says led to believe school accredited, but it wasn't.]
REPORTER: Producer: Roger Simms

(Texas) Alleged Whaling schools gave kickbacks to banks. FBI investigates missing $2 million in Department of Health, Education and Welfare education grants that students never saw. 7 HEW representatives fired in Texas for making irregular loans to Whaling. [Ex-McAllen student Janice WEST - says doesn`t feel she should pay $1700 to bank.] [FONTANA - says wants something for her money.] [Department of Health, Education and Welfare representative Charles COOKE - explains why Department of Health, Education and Welfare delayed action.] Real losers are students.
REPORTER: Sharron Lovejoy

Reporter(s):
Lovejoy, Sharron;
Mudd, Roger;
Simms, Roger
Duration:
00:07:20

Note to sponsor members: The Vanderbilt Television News Archive video player requires a modern operating system and browser to work properly. If you are experiencing playback problems, check the minimum requirements and adjust your setup accordingly. After adjustments, if you continue to experience problems, please contact us.

Welcome! Above is the abstract of the item that you're interested in viewing from the Vanderbilt Television News Archive's collection. You have three options if you'd like to view this item:

  • You may request a loan of this video by registering on our website and placing an order.
  • You may visit the Television News Archive on the Vanderbilt campus to view on-site from the Archive's collection.
  • If you are associated with a college or university, you may ask your library if they would like to become a sponsor, which would give students and faculty at your institution the ability to view items from our collection.

If you believe that you are associated with a sponsoring college or university and have received this message in error, please let us know.