Search the Archive

Special Report (Correspondence Schools) #241537

CBS Evening News for Tuesday, Aug 19, 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) Report on collapse of loan program for correspondence schools.
REPORTER: Roger Mudd

(Chicago, Illinois) Advanced Schools Incorporated, (A. S. I.) is bankrupt. Govt. guaranteed loans in 1969 to students of A. S. I. and others. Bank loaned money. Students repaid mos. after graduation at 7% interest. Department of Health, Education and Welfare gave banks 3% interest and promised to pay loan if student didn't. A. S. I. began recruiting students and depended on selling as many promissory notes as possible to banks. In 1974, banks no longer as interested in 10% return on student loans. Defaults incrd. A. S. I. went bankrupt in January
REPORTER: Sharron Lovejoy

(No location given) [Ex-salesman A. S. I. Harold HOLLEY - says major sales representatives acted as though there was no tomorrow. Cites student deficiencies. Easy to hardsell student.]
REPORTER: Bernard Shaw

(Chicago, Illinois) A. S. I. participating banks shown as map. If fraud proved, government could call loans invalid. [American National Bank and Trust Company of Chicago Jim HERRING - says a lot of banks would be in serious financial trouble if Department of Health, Education and Welfare refuses to pay for loans. They'll pay provided loans are valid.] Fraud could exist in several areas.
REPORTER: Sharron Lovejoy

(No location given) [HOLLEY - says salesmen found forged applications to school. Husband signed application under G. I. loan when class was for wife.]
REPORTER: Bernard Shaw

(Chicago, Illinois) A. S. I. under close supervision by banks. Schools to be kept open and to save taxpayers' money. [HERRING - says Washington, DC pays for loans. Bankers didn't write legislature] House subcommittee on post-secondary education studies program.
REPORTER: Sharron Lovejoy

(DC) [Representative James O'HARA - says system should have been recognized as being open to abuse. Department of Health, Education and Welfare should have been more vigilant. Taxpayers always pay.] McMahon College television commercial shown.
REPORTER: Sharron Lovejoy

(Chicago, Illinois) If Department of Health, Education and Welfare disconts. promise of repayment, program will probably fold.
REPORTER: Sharron Lovejoy

Reporter(s):
Lovejoy, Sharron;
Mudd, Roger;
Shaw, Bernard
Duration:
00:07:50

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.