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Loan sharksIt’s one thing for progressive pundits and advocates to talk in generalities about what the election of Thom Tillis and his conservative colleagues to the U.S. Senate will mean in the policy world next year, but here’s a much more concrete and troubling example of what we have to look forward to. According to a pair of global banking giants, scalawag, for-profit colleges are now a hot investment opportunity.

As reported this morning by Alan Pyke at Think Progress:

Investment advisers from both Credit Suisse and BMO Capital Markets issued research notes this week connecting the Republican victories on Tuesday to an improved outlook for education companies. The analyses were based primarily on future legislative predictions. The Higher Education Act needs to be renewed, and BMO’s Jeffrey Silber argued that a Republican Senate will produce a bill that is much friendlier to the companies that run for-profit schools, according to Buzzfeed. Credit Suisse wrote in Barron’s that the “diminished regulatory risk characteristics of a Republican-controlled electorate” makes student lending company stocks likely to rise in value because “Republicans have historically fought detrimental legislation originating from Congressional Democrats.”

Here’s what that means when translated to everyday English: With conservatives exercising complete control over Congress, lobbyists for all sort of sharks and con artists will be like pigs in slop more than ever before. And one of the top scamming industries these days in modern America is the for-profit college business. As the article notes:

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A for-profit online education company will be at the legislature tomorrow to give a pitch to lawmakers about the virtual public charter schools it runs, and profits from, in more than 30 other states.

An executive from K12, Inc., a Wall Street-traded company that gets the bulk of its revenue from running online public schools, is slated to make a presentation Tueaday at the Joint Legislative Education Oversight committee. The hearing begins at 10 am. Tuesday in room 643 of the Legislative Office Buildling.

(Steaming audio of the meeting will be available here, and a copy of the commitee’s agenda is here.)

Mary Gifford, the company’s senior vice-president for education policy scheduled to speak to lawmakers, also spoke last week in front of a virtual charter school study group assembled to craft recommendations for the State Board of Education of how the online-only schools should operate in North Carolina.

At that meeting, Gifford acknowledged low graduation and performance rates K12,Inc.-run schools have had in other states, saying that the company’s schools tend to attract low performing students and the home-based system of education can do little to help those high-school students.

“High school is a nightmare,” Gifford told the virtual charter study group last Tuesday. Forty percent of the students in high school will be very successful.”

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