For-Profit Colleges That Bury Students In Debt Face Second Obama Crackdown

[Tx4obama]

For-Profit Colleges That Bury Students In Debt Face Second Obama Crackdown

The Obama administration on Friday will release new regulations intended to target for-profit colleges and career training programs that leave students mired in debt and unable to find decent jobs.

It's the second time in three years that the Department of Education has tried to rein in abuses in the for-profit college industry, whose leaders prevailed in a court battle in 2012 that overturned most the administration's previous rules. The new rules are designed judge the effectiveness of for-profit and some nonprofit career college programs by examining whether students are able to manage their debts after leaving school.

The worst-performing programs may eventually be cut off from federal student aid funding -- the source of nearly 90 percent of revenue for some for-profit colleges.

"Too many of these programs fail to provide students with the training they need, at taxpayer expense and at the cost of these students' futures," Education Secretary Arne Duncan said Thursday evening in a briefing with reporters.

The so-called gainful employment rules would apply to schools that each year take in about $26 billion in federal student loans and about $10 billion in Pell grants for low-income students.

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Full article here: http://www.huffingtonpost.com/2014/03/13/for-profit-colleges-obama_n_4961163.html