Money down a rathole?

Millions in state scholarship dollars in Kentucky have gone to for-profit institutions.  One, Decker College, went bankrupt.  From Kentucky.com.

Kentucky has paid $97 million since 1999 through its state scholarships to privately owned, for-profit colleges, including several under investigation for alleged consumer fraud or other possible wrongdoing, according to a Lexington Herald-Leader review of public records.

Some states, such as Ohio, have moved to reduce for-profit colleges' access to state educational aid, citing a need to put students at state colleges first in a time of repeated budget cuts.

Kentucky has not. The state gives nearly 8 percent of need-based student aid to for-profit colleges, which is twice the national average, according to a survey by the National Association of State Student Grant and Aid Programs. Only four states give a bigger portion of need-based aid to the industry, the association found.

Among Kentucky's for-profit schools to collect state aid was Decker College in Louisville, which went bankrupt in 2005 amid allegations of fraud and inadequate accreditation, leaving hundreds of students with loan debt and no chance to obtain degrees. Another, the Sullivan University System, saw a nearly 1,000 percent increase in its assets from 1998 to 2009, accumulating $76 million, according to court records.

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